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<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"><b>3.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Changes
in significant accounting policies</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">a.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"><b>Application
of new and revised International Financing Reporting Standards (“IFRSs” or
“IAS”) that are mandatorily effective for the current year</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
the current year, the Group has applied a number of new standards and amendments to IFRSs issued by the International Accounting
Standards Board (“IASB”) that are mandatorily effective as of January 1, 2019.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>New
and amended IFRS Standards that are effective for the current year</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt"><font style="font: 10pt Times New Roman, Times, Serif"><i>IFRS
16 Leases</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">IFRS
16, <i>Leases</i>, supersedes IAS 17, <i>Leases</i>, and the related interpretations. This new standard brings most leases on
balance sheet for lessees under a single model, eliminating the distinction between operating and financial leases, while the
model for lessees remains without significant changes. IFRS 16 is effective beginning January 1, 2019, and the Group adopted the
requirements utilizing the modified retrospective method, without restating prior years and recognizing a right-of-use asset and
a lease liability of Ps. 22,393. In addition, management applied the practical expedient, provided by IFRS 16 at the transition
date, that allows the creation of portfolios of contracts that are similar in terms, economic environment and characteristics
of assets, and use a funding rate by portfolio to measure leases.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
application of IFRS 16 represents the following considerations on the combined statement of cash flows of the Group: a) short-term
lease payments, payments for leases of low-value assets and variable lease payments not included in the measurement of the lease
liability are presented as part of operating activities; and b) cash paid for the interest portion of a lease liability is presented
as financing activities, as well as cash payments for the principal portion for a lease liability. However, the adoption of IFRS
16 did not have any impacts on net cash flows.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group took the required steps to implement the changes that the standard represents in terms of internal control, tax and systems
affairs, from the adoption date.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Additionally,
the tables below show the amount of adjustment for each financial statement line item affected by the application of IFRS 16 for
the current year.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-style: italic; text-align: justify">Impact on profit or loss</td><td style="border-bottom: Black 1.5pt solid"> </td>
<td style="border-bottom: Black 1.5pt solid"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,<br />
2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Increase in depreciation of right-of-use asset</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">13,098</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt; text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Increase in finance costs</td><td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,765</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt; text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Decrease in profit for the year</td><td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(16,863</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-style: italic; text-align: justify">Impact on assets and liabilities</td><td style="border-bottom: Black 1.5pt solid"> </td>
<td style="border-bottom: Black 1.5pt solid"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 1,<br />
2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Right-of-use assets</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">36,909</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Lease liabilities</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">36,909</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt"><font style="font: 10pt Times New Roman, Times, Serif"><i>IFRIC
23 Uncertainty over Income Tax Treatments</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">This
interpretation clarifies how to apply the recognition and measurement requirements in IAS 12, <i>Income taxes</i> when there is
uncertainty over income tax treatments. Uncertain tax treatments are tax treatments for which there is uncertainty over whether
the relevant taxation authority will accept the tax treatment under tax law; in such a circumstance, the Group shall recognize
and measure its current or deferred tax asset or liability by applying the requirements in IAS 12 based on taxable profit (tax
loss), tax bases, unused tax losses, unused tax credits and tax rates determined applying this Interpretation. The Group did not
have any impacts in the adoption of this interpretation.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Other
amendments to IFRS </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 21.3pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
the current year, the Group has also considered and applied a number of amendments to IFRS issued by the IASB that are not applicable
or significant but that are effective for an annual period that begins on or after 1 January 2019. Their adoption did not have
any material impacts in the combined financial statements for the following amendments and improvements:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 56.7pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 21.3pt"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Amendments
to IFRS 9 Prepayment Features with Negative Compensation</i></font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 56.7pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 21.3pt"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Amendments
to IAS 28 Long-term Interests in Associates and Joint Ventures </i></font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 56.7pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 21.3pt"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Annual
Improvements to IFRS 2015–2017 Cycle Amendments to IFRS 3 Business Combinations,
IFRS 11 Joint Arrangements, IAS 12 Income Taxes and IAS 23 Borrowing Costs</i></font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 56.7pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 21.3pt"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Amendments
to IAS 19 Employee Benefits Plan Amendment, Curtailment or Settlement</i></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>New
and revised IFRS Standards in issue but not yet effective</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 7.1pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">At
the date of authorization of these combined financial statements, the Group has not applied the following new and revised IFRS
that have been issued but are not yet effective as of December 31, 2019; however, for the amendments effective from January 1,
2020 the Group already concluded on its adoption as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Amendments
to IFRS 3 Definition of a business</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
amendments clarify that while businesses usually have outputs, outputs are not required for an integrated set of activities and
assets to qualify as a business. To be considered a business, an acquired set of activities and assets must include, at a minimum,
an input and a substantive process that together significantly contribute to the ability to create outputs. Additional guidance
is provided that helps to determine whether a substantive process has been acquired. In addition, the amendments introduce an
optional concentration test that permits a simplified assessment of whether an acquired set of activities and assets is not a
business. Under the optional concentration test, the acquired set of activities and assets is not a business if substantially
all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar assets.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
amendments are applied prospectively to all business combinations and asset acquisitions for which the acquisition date is on
or after the first annual reporting period beginning on or after January 1, 2020, with early application permitted. The Group
did not have any impacts in the combined financial statements from the adoption of these amendments.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Amendments
to IAS 1 and IAS 8 Definition of material</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
amendments are intended to make the definition of material in IAS 1 easier to understand and are not intended to alter the underlying
concept of materiality in IFRS. The concept of ‘obscuring’ material information with immaterial information has been
included as part of the new definition. The threshold for materiality influencing users has been changed from ‘could influence’
to ‘could reasonably be expected to influence’. The definition of material in IAS 8 has been replaced by a reference
to the definition of material in IAS 1. In addition, the IASB amended other standards and the conceptual framework that contain
a definition of material or refer to the term ‘material’ to ensure consistency.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
amendments are applied prospectively for annual periods beginning on or after January 1, 2020, with earlier application permitted.
The Group did not have any impacts in the combined financial statements from the adoption of these amendments.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Amendments
to the conceptual framework in IFRS </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Together
with the revised Conceptual Framework, which became effective upon publication on March 29, 2018, the IASB has also issued Amendments
to References to the Conceptual Framework in IFRS. The document contains amendments to IFRS 2, IFRS 3, IFRS 6, IFRS 14, IAS 1,
IAS 8, IAS 34, IAS 37, IAS 38, IFRIC 12, IFRIC 19, IFRIC 20, IFRIC 22, and SIC-32. Not all amendments, however, update those pronouncements
with regard to references to and quotes from the framework so that they refer to the revised Conceptual Framework. Some pronouncements
are only updated to indicate which version of the Framework they are referencing to (the IASC Framework adopted by the IASB in
2001, the IASB Framework of 2010, or the new revised Framework of 2018) or to indicate that definitions in the standard have not
been updated with the new definitions developed in the revised Conceptual Framework.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
amendments that imply updates are effective for annual periods beginning on or after January 1, 2020, with early application permitted.
The Group did not have any impacts in the combined financial statements from the adoption of these amendments.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Amendments
to IFRS 9, IAS 39 and IFRS 7 Interest rate benchmark reform</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
amendments in the Interest Rate Benchmark Reform deal with issues affecting financial reporting in the period before the replacement
of an existing interest rate benchmark with an alternative interest rate and addresses the implications for specific hedge accounting
requirements and disclosures in IFRS 9, IAS 39 and IFRS 7. The amendments also clarify that entities would continue to apply certain
hedge accounting requirements assuming that the interest rate benchmark on which the hedged cash flows and cash flows from the
hedging instrument are based will not be altered as a result of the interest rate benchmark reform.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
amendments are effective for annual reporting periods beginning on or after January 1, 2020 and must be applied retrospectively,
with earlier application permitted. The Group did not have any impacts in the combined financial statements from the adoption
of these amendments.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>IFRS
17 Insurance Contracts </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">IFRS
17 establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts and supersedes
IFRS 4, <i>Insurance Contracts</i>. IFRS 17 outlines a general model, which is modified for insurance contracts with direct participation
features, described as the variable fee approach. The general model is simplified if certain criteria are met by measuring the
liability for remaining coverage using the premium allocation approach. The general model uses current assumptions to estimate
the amount, timing and uncertainty of future cash flows and it explicitly measures the cost of that uncertainty. It takes into
account market interest rates and the impact of policyholders’ options and guarantees.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
standard is effective for annual reporting periods beginning on or after 1 January 2021, with early application permitted. It
is applied retrospectively unless impracticable, in which case the modified retrospective approach or the fair value approach
is applied. Amendments to IFRS 17 addresses concerns and implementation challenges that were identified after IFRS 17 was published.
One of the main changes proposed is the deferral of the date of initial application of IFRS 17 by one year to annual periods beginning
on or after January 1, 2022.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
the purpose of the transition requirements, the date of initial application is the start of the annual reporting period in which
the entity first applies the standard, and the transition date is the beginning of the period immediately preceding the date of
initial application. The Group is in the process of evaluating these requirements to conclude if it maintains any insurance contracts
under the scope of the standard, that may represent an impact to its combined financial statements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i></i></b></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-style: italic; text-align: justify">Impact on profit or loss</td><td style="border-bottom: Black 1.5pt solid"> </td>
<td style="border-bottom: Black 1.5pt solid"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,<br />
2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Increase in depreciation of right-of-use asset</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">13,098</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt; text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Increase in finance costs</td><td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,765</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt; text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Decrease in profit for the year</td><td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(16,863</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-style: italic; text-align: justify">Impact on assets and liabilities</td><td style="border-bottom: Black 1.5pt solid"> </td>
<td style="border-bottom: Black 1.5pt solid"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 1,<br />
2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Right-of-use assets</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">36,909</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Lease liabilities</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">36,909</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"></p>
13098000
3765000
-16863000
23811000
24584000
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">b.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Basis
of accounting</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
combined financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS")
as issued by the International Accounting Standards Board.</font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">c.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Basis
of measurement</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
combined financial statements have been prepared on the historical cost basis except for certain financial instruments measured
at fair value.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Functional
and presentation currency</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">These
combined financial statements are presented in Mexican pesos ("Ps."), which is the Group's functional currency.
All financial information presented in Mexican pesos has been rounded to the nearest thousand (except where specified differently).
When referring to U.S. dollars ("US$"), it is thousands of dollars of the United States of America.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Combined
statement of profit or loss and other comprehensive income</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group opted to present a single combined statement of profit or loss and comprehensive income, combining the presentation of profit
and loss, including an operating profit line item, and comprehensive income in the same statement. Due to the commercial activities
of the Group, costs and expenses presented in the combined statements of profit or loss and other comprehensive income were classified
according to their function. Accordingly, cost of sales and operating expenses were presented separately.</font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">d.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Cash
and cash equivalents and restricted cash</i></b></font></td></tr></table>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: left; text-indent: 0in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Cash
and cash equivalents consist mainly of bank deposits and short-term investments in securities, highly liquid and easily convertible
into cash in a period no longer than three months. Cash is stated at nominal value and cash equivalents are valued at fair value. 
Any cash or cash equivalent that cannot be disposed of in less than three months is classified as restricted cash.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
of December 31 2018, restricted cash was classified within other non-current assets, which equaled one quarter of the interest
accrued under the long term credit with MCRFP, S.A. de C.V. SOFOM, E.N.R. As of December 31, 2019, the Group does not maintain
restricted cash (see Note 5) as the restriction was lifted during the year.</font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">e.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Financial
instruments</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Financial
assets and financial liabilities are recognized in the Group's combined statement of financial position when the Group becomes
a party to the contractual provisions of the instrument.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Financial
assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair
value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as
appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial
liabilities at fair value through profit or loss are recognized immediately in profit or loss.</font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 25.1pt"><font style="font: normal 10pt Times New Roman, Times, Serif">h.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Derivative
financial instruments</i></b></font></td></tr></table>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: 0in"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate
risks, including foreign exchange forward contracts and interest rate swaps. Further details of derivative financial instruments
are disclosed in Note 18.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Derivatives
are recognized initially at fair value at the date a derivative contract is entered into and are subsequently remeasured to their
fair value at each reporting date. The resulting gain or loss is recognized in profit or loss immediately unless the derivative
is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on
the nature of the hedge relationship.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">A
derivative with a positive fair value is recognized as a financial asset whereas a derivative with a negative fair value is recognized
as a financial liability. Derivatives are not offset in the combined financial statements unless the Group has both legal right
and intention to offset. A derivative is presented as a non-current asset or a non-current liability if the remaining maturity
of the instrument is more than 12 months and it is not expected to be realized or settled within 12 months. Other derivatives
are presented as current assets or current liabilities.</font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">i.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Inventories
and cost of sales</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Inventories
are measured at the lower of cost and net realizable value. The cost of inventories is based on weighted-average. The net realizable
value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling
and distribution.</font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">j.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Prepaid
expenses</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Prepaid
expenses are mainly comprised of advanced payments for printed catalogs, as well as, advanced payments for the purchase of inventories
that are received after the date of the combined statement of financial position and during the normal course of business, and
they are presented in current assets in accordance with the classification of the destination item.</font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">k.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Other
assets</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Other
assets mainly include restricted cash (see Note 2d), inventory of rewards and rent security deposits. They are presented in current
or non-current assets in accordance with the classification of the destination item.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Under
the reward program, the Group grants reward points to its distributors for the recruitment of associates, while associates receive
such points for the referral of new associates within a catalogue. These points are exchangeable for products that Betterware
acquires from other suppliers, which are not related to a revenue contract. The points expire based on commercial terms established
by the Group that can be modified at management's discretion. Inventory of rewards mainly consist of certain products and
items (in the form of rewards) that Betterware acquires with the purpose to encourage sales among the distributors and associates.
Such inventory is acquired once the distributors and associates redeem the reward points that are granted by the Group so that
the balance of inventory at each reporting period only relates to items already redeemed but not delivered. Inventory of rewards
are recognized at cost of acquisition.</font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">l.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Property,
plant and equipment, net</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Items
of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">If
significant parts of an item have different useful lives, then they are accounted for as separate items (major components).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Depreciation
is recognized using the straight-line method. The estimated useful lives and depreciation method are reviewed at the end of each
reporting period, with the effect of any changes in estimate accounted for on a prospective basis.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
following useful lives are used in the calculation of depreciation:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; width: 75%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Molds</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 25%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">5
years</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Vehicles</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">4
years</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Computers
and equipment</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">3
- 10 years</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Leasehold
improvements</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">3
years</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Property,
plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued
use of the asset. Any gain or loss arising on the disposal or retirement is determined as the difference between the sales proceeds
and the carrying amount of the asset and is recognized in profit or loss.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Borrowing
costs directly attributable to the acquisition or construction of qualifying assets (designated asset), which are assets that
necessarily take a substantial period of time before they are available for their intended use, are added to the cost of those
assets, until such time as the assets are available for their intended use. If any specific borrowing remains outstanding after
the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity borrows generally
when calculating the capitalization rate on general borrowings.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Investment
income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from
the borrowing costs eligible for capitalization. All other borrowing costs are recognized in profit or loss in the period in which
they are incurred. All other borrowing costs are recognized in profit or loss in the period in which they are incurred.</font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">m.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Intangible
assets</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 56.7pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"><u>Brand</u></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">This
is an intangible asset with an indefinite useful life and corresponds mainly to the value of the "Betterware" brand,
which was transmitted to the Group through a merger with Strevo Holding, S.A. de C.V. ("Strevo", an unrelated third
party) on July 28, 2017. This intangible asset is subject to annual impairment testing, and whenever there is an indication that
the asset may be impaired.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Additionally,
the Group has incurred expenditures related to registration of trademark rights, which have a finite life. Such expenditures are
amortized on a straight-line basis over their estimated useful lives which range from 10 to 30 years.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 56.7pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"><u>Relationship
with customers</u></font></td></tr></table>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">This
is an intangible asset with a definite useful life of ten years and is being amortized on a straight line basis and corresponds
to the value of the relationships with customers. It was transmitted to the Group through a merger with Strevo on July 28, 2017.
This intangible asset is subject to impairment testing whenever there is an indication that the asset may be impaired.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 56.7pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"><u>Derecognition
of intangible assets</u></font></td></tr></table>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">An
intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or
losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the
carrying amount of the asset, are recognized in profit or loss when the asset is derecognized.</font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">n.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Impairment
of tangible and intangible assets other than goodwill</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">At
the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether
there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount
of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate
the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which
the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated
to individual cash-generating units, or otherwise, they are allocated to the smallest group of cash-generating units for which
a reasonable and consistent allocation basis can be identified.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Intangible
assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually,
and whenever there is an indication that the asset may be impaired.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Recoverable
amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows
are discounted to their present value using a post-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">If
the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced
to its recoverable amount. Any impairment is recognized immediately in profit or loss.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">When
an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable
amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment
loss been recognized for the asset in prior years. A reversal of an impairment loss is recognized immediately in profit or loss
unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation
increase.</font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">o.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Goodwill</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Goodwill
corresponds to the excess resulted between the consideration paid and the fair values of the net assets acquired at the date of
acquisition paid by Betterware Latinoamérica Holding México, S.A. de C.V. (BLHM) and Strevo. Goodwill was generated
by different legal entities and transmitted to the Group through the mergers carried out on November 30, 2002 and July 28, 2017,
respectively (Note 11).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
disclosed in Note 11, Goodwill was transferred to the Group through mergers carried out on November 30, 2002 and July 28, 2017
with BLHM and Strevo, respectively, which was generated through the acquisition of shares of the Group in November 2002 and March
2015, respectively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Goodwill
is not amortized but is tested annually for impairment. Goodwill arising from a business combination is allocated to the cash
generating unit ("CGU") receiving a benefit from the synergies of the combination. An impairment loss is recognized
if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss.
They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts
of the other long-lived assets in the CGU on a pro rata basis. An impairment loss in respect of goodwill is not reversed.</font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">p.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Leases</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Classification
and valuation of leases under IAS 17, in effect through December 31, 2018</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>The
Group as lessee</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
the year ended December 31, 2018, the classification of leases as finance or operating depended on the substance of the transaction
rather than the form of the contract.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Leases
in which a significant portion of the risks and rewards relating to the leased property are retained by the lessor were classified
as operating leases. Payments made under operating leases (net of incentives received by the lessor) were recognized in the combined
statement of income based on the straight-line method over the lease period.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Leases
where the Group assumes substantially all the risks and rewards of ownership were classified as finance leases. Finance leases
were capitalized at the beginning of the lease, at the lower of the fair value of the leased property and the present value of
the future minimum lease payments. If its determination was practical, in order to discount the future minimum lease payments
to present value, the interest rate implicit in the lease was used; otherwise, the incremental borrowing rate of the lessee was
used.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
the year ended December 31, 2018, the Group had only entered into operating leases.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>The
Group as lessor</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
of and for the year ended December 31, 2018, the Group did not maintain any leases as lessor.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Classification
and valuation of leases under IFRS 16, in effect beginning January 1, 2019 (Note 3a)</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>The
Group as lessee</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group evaluates whether a contract is or contains a lease agreement at inception of a contract. A lease is defined as an agreement
or part of an agreement that conveys the right to control the use of an identified asset for a period of time in exchange for
a consideration. The Group recognizes an asset for right-of-use and the corresponding lease liability, for all lease agreements
in which it acts as lessee, except in the following cases: short-term leases (defined as leases with a lease term of less than
12 months); leases of low-value assets (defined as leases of assets with an individual market value of less than US$5,000 (five
thousand dollars)); and, lease agreements whose payments are variable (without any contractually defined fixed payment). For these
agreements, which exempt the recognition of an asset for right-of-use and a lease liability, the Group recognizes the rent payments
as an operating expense in a straight-line method over the lease period.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
right-of-use asset comprises all lease payments discounted at present value; the direct costs to obtain a lease; the advance lease
payments; and the obligations of dismantling or removal of assets. The Group depreciates the right-of-use asset over the shorter
of the lease term or the useful life of the underlying asset; therefore, when the lessee will exercise a purchase option, the
lessee shall depreciate the right-of-use asset from the commencement date to the end of the useful life of the underlying asset.
Depreciation begins on the lease commencement date.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
lease liability is initially measured at the present value of the future minimum lease payments that have not been paid at that
date, using a discount rate that reflects the cost of obtaining funds for an amount similar to the value of the lease payments,
for the acquisition of the underlying asset, in the same currency and for a similar period to the corresponding contract (incremental
borrowing rate). To determine the lease term, the Group considers the non-cancellable period, including the probability to exercise
any right to extend and/or terminate the agreement.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Subsequently,
the lease liability is measured increasing the carrying amount to reflect interest on the lease liability (using the effective
interest method) and reducing the carrying amount to reflect the lease payments made.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">When
there is a modification in future lease payments resulting from changes in an index or a rate used to determine those payments,
the Group remeasures the lease liability when the adjustment to the lease payments takes effect, without reassessing the discount
rate. However, if the modifications are related to the lease term or exercising a purchase option, the Group reassesses the discount
rate during the liability's remeasurement. Any increase or decrease in the value of the lease liability subsequent to this
remeasurement is recognized as an adjustment to the right-of-use asset to the same extent.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Finally,
the lease liability is derecognized when the Group fulfills all lease payments. When the Group determines that it is probable
that it will exercise an early termination of the contract that leads to a cash disbursement, such disbursement is accounted as
part of the liability's remeasurement mentioned in the previous paragraph; however, in cases in which the early termination
does not involve a cash disbursement, the Group cancels the lease liability and the corresponding right-of-use asset, recognizing
the difference immediately in the combined statement of profit or loss and other comprehensive income. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>The
Group as lessor</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
of and for the year ended December 31, 2019, the Group does not maintain any leases as lessor.</font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">q.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Foreign
currency</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
preparing the combined financial statements, transactions in currencies other than the Mexican Peso, which is the functional currency
of the combined entities are recognized at the exchange rates at the dates of the transactions. Monetary assets and liabilities
denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Non-monetary
items that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of transaction.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Exchange
differences on monetary items are recognized in profit or loss in the period in which they arise.</font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">r.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Employee
benefits</i></b></font></td></tr></table>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"><u>Retirement
benefits - Defined benefit obligations</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
Group's defined benefit obligations cover seniority premiums which consist of a lump sum payment of 12 day's wage
for each year worked, calculated using the most recent salary, not to exceed twice the legal minimum wage established by law.
The related liability and annual cost of such benefits are calculated with the assistance of an independent actuary on the basis
of formulas defined in the plans using the projected unit credit method at the end of each annual reporting period.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
Group's net obligation with respect to the defined-benefit plan are calculated separately for each plan, estimating the amount
of future benefit accrued by employees in return for their services in ongoing and past periods; that benefit is discounted to
determine its present value, and the costs for the services that have not been recognized and the fair value of the plan assets
are deducted. The discount rate is the yield at the reporting date of the government bonds that have maturity dates approximate
to the maturities of the Group's obligations which are denominated in the same currency in which benefits are expected to be paid
(Mexican pesos).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Net
interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset.
Defined benefit costs are categorized as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 56.7pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Service
cost (including current service cost, past service cost, as well as gains and losses
on curtailments and settlements);</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 56.7pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Net
interest expense or income; and</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 56.7pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Remeasurements.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Remeasurements
of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest)
and the effect of the asset ceiling (if applicable), are recognized immediately in the liability against other comprehensive income
in the period in which they occur. Remeasurement recognized in other comprehensive income is never reclassified to profit or loss.
Past service cost is recognized in profit or loss in the period in which a plan amendment or curtailment occurs, or when the Group
recognizes the related restructuring costs or termination benefits, if earlier.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><u>Short-term
and other long-term employee benefits and statutory employee profit sharing ("PTU")</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">A
liability is recognized for benefits accruing to employees in respect of wages and salaries, annual leave and sick leave in the
period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.
Likewise, a liability is recognized for the amount expected to be paid if the Group has a present legal or constructive obligation
to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Liabilities
recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid
in exchange for the related service.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Liabilities
recognized in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows
expected to be made by the Group in respect of services provided by employees up to the reporting date.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><u>Statutory
employee profit sharing ("PTU")</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">PTU
is recorded in the results of the year in which it is incurred and is presented in operating expenses line item in the combined
statement of profit or loss and other comprehensive income.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
a result of the 2014 Income Tax Law, as of December 31, 2019 and 2018, PTU is determined based on taxable income, according to
Section I of Article 9 of the that Law.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><u>Termination
benefits</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Termination
benefits are recognized as an expense when the Group's commitment can be evidenced, without real possibility of reversing,
with a detailed formal plan either to terminate employment before the normal retirement date, or else, to provide benefits for
termination as a result of an offer that is made to encourage voluntary retirement. If the benefits are payable no later than
12 months after the reporting period, then they are discounted at present value.</font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">s.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Income
taxes</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Income
tax expense represents the sum of the tax currently payable and deferred tax.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 56.7pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"><u>Current
tax</u></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Current
income tax ("ISR") is recognized in the results of the year in which is incurred.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in profit or
loss because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items
that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been
enacted or substantively enacted by the end of the reporting period.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">A
provision is recognized for those matters for which the tax determination is uncertain but it is considered probable that there
will be a future outflow of funds to a tax authority. The provisions are measured at the best estimate of the amount expected
to become payable. The assessment is based on the judgment of tax professionals within the Group supported by previous experience
in respect of such activities.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 56.7pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"><u>Deferred
income tax</u></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Deferred
tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the combined financial statements
and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for
all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the
extent that it is probable that taxable profits will be available against which those deductible temporary differences can be
utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition
(other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor
the accounting profit. In addition, deferred tax liabilities are not recognized if the temporary difference arises from the initial
recognition of goodwill.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no
longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Deferred
tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled
or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting
date.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the
Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 56.7pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 18pt"><font style="font: normal 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"><u>Current
and deferred tax for the year</u></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Current
and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive
income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or
directly in equity respectively.</font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">t.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Provisions
</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Provisions
are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that
the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Provisions
mainly include incentives granted to distributors and associates in the form of reward points, discounts and others such as compensations
to employees (bonuses) not paid at the reporting date, professional services fees, among others.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end
of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured
using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows
(when the effect of the time value of money is material).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">When
some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable
is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can
be measured reliably.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Warranties</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">When
the Group grants assurance-type warranties in contracts with customers, those rights to the customer are recognized in profit
or loss in the cost of sales line item against a provision in the statement of financial position; however, when the Group provides
its customers with service-type warranties, those are treated under the revenue recognition model as a performance obligation.
For the years ended December 31, 2019 and 2018, the Group has not granted any service-type warranties to its customers.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Reward
Points</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Through
its loyalty program (see note 2u), the Group also grants reward points to its distributors for the recruitment of associates,
while associates receive such points for the referral of new associates within a catalogue. The loyalty program allows the Group's
distributors and associates to accumulate sales points which are exchangeable for products that are purchased from other retailers.
Since these type of points also provide a benefit to distributors and associates that they would not receive without purchasing
the Group's products, this loyalty program represents a separate performance obligation, which is recognized as described
in Note 2u.</font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 25.1pt"><font style="font: normal 10pt Times New Roman, Times, Serif">v.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Financing
income and cost</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Financing
income (cost) are comprised of interest income, interest expense, the foreign currency gain (loss) on financial assets and financial
liabilities; and gain (loss) in valuation of financial derivative instruments. Those are recognized in the combined statement
of profit or loss and other comprehensive income when accrued.</font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">w.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Contingencies</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Significant
obligations or losses related to contingencies are recognized when it is probable that their effects will materialize and there
are reasonable elements for their quantification. If these reasonable elements do not exist, their disclosure is included qualitatively
in the notes to the combined financial statements. Income, profits or contingent assets are recognized until such time as there
is certainty of their realization.</font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">x.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Common
control transactions</i></b></font></td></tr></table>
<p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 53.45pt; text-align: justify; text-indent: 0in"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group has established as its accounting policy choice to recognize transactions under common control at the book value of the
assets and liabilities acquired or involved in the common control transaction (either acquisition or disposition).</font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 25.1pt"><font style="font: normal 10pt Times New Roman, Times, Serif">g.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Financial
liabilities</i></b></font></td></tr></table>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: 0in"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">All
financial liabilities are measured subsequently at amortized cost using the effective interest method or at FVTPL.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Financial
liabilities at FVTPL are measured at fair value, with any gains or losses arising on changes in fair value recognized in profit
or loss to the extent that they are not part of a designated hedging relationship.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Financial
liabilities and equity</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Classification
as debt or equity </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Debt
and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual
arrangements and the definitions of a financial liability and an equity instrument.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Financial
liabilities measured subsequently at amortized cost </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Financial
liabilities that are not (i) contingent consideration of an acquirer in a business combination, (ii) held-for-trading, or (iii)
designated as at FVTPL, are measured subsequently at amortized cost using the effective interest method.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense
over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including
all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums
or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortized
cost of a financial liability.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Foreign
exchange gains and losses</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
financial liabilities that are denominated in a foreign currency and are measured at amortized cost at the end of each reporting
period, the foreign exchange gains and losses are determined based on the amortized cost of the instruments. These foreign exchange
gains and losses are recognized in the 'Foreign exchange (loss) gain, net' line item in the Combined Statements of
Profit or Loss and Other Comprehensive Income for financial liabilities that are not part of a designated hedging relationship.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency and translated at
the spot rate at the end of the reporting period. For financial liabilities that are measured as at FVTPL, the foreign exchange
component forms part of the fair value gains or losses and is recognized in profit or loss for financial liabilities that are
not part of a designated hedging relationship.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Derecognition
of financial liabilities</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group derecognizes financial liabilities when, and only when, the Group's obligations are discharged, canceled or have expired.
The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized
in profit or loss.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">When
the Group exchanges with the existing lender one debt instrument into another one with the substantially different terms, such
exchange is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability.
Similarly, the Group accounts for substantial modification of terms of an existing liability or part of it as an extinguishment
of the original financial liability and the recognition of a new liability. It is assumed that the terms are substantially different
if the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted
using the original effective rate is at least 10 per cent different from the discounted present value of the remaining cash flows
of the original financial liability. If the modification is not substantial, the difference between (1) the carrying amount of
the liability before the modification; and (2) the present value of the cash flows after modification should be recognized in
profit or loss as the modification gain or loss within other gains and losses.</font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; width: 75%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Molds</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 25%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">5
years</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Vehicles</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">4
years</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Computers
and equipment</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">3
- 10 years</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Leasehold
improvements</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">3
years</font></td></tr>
</table>
5 years
4 years
3 years
10 years
3 years
0.10
3 Years
10 Years
30 Years
10 Years
P10Y
The Group recognizes an asset for right-of-use and the corresponding lease liability, for all lease agreements in which it acts as lessee, except in the following cases: short-term leases (defined as leases with a lease term of less than 12 months); leases of low-value assets (defined as leases of assets with an individual market value of less than US$5,000 (five thousand dollars)); and, lease agreements whose payments are variable (without any contractually defined fixed payment).
Between 15 and 30 days.
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"><b>9.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Other
assets</b></font></td></tr></table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-left: 0; text-indent: 0"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0; text-indent: 0"> </td><td> </td>
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-indent: 0; padding-left: 0">Inventory of rewards</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">13,315</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">8,667</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: 0; padding-left: 0">Transaction costs of the merger</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,822</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: 0; padding-left: 0">Other receivables</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">7,259</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">535</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: 0; padding-left: 0">Rent security deposit</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,549</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,148</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: 0; padding-left: 0">Restricted cash</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">22,088</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: 0; padding-left: 0"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; text-indent: 0; padding-left: 0"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">33,945</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">33,438</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: 0; padding-left: 0"> </td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: 0; padding-left: 0">Current</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">20,574</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,202</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt; text-indent: 0; padding-left: 0">Non-current</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">13,371</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">24,236</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: 0; padding-left: 0"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt; text-indent: 0; padding-left: 0"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">33,945</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">33,438</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-left: 0; text-indent: 0"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0; text-indent: 0"> </td><td> </td>
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-indent: 0; padding-left: 0">Inventory of rewards</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">13,315</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">8,667</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: 0; padding-left: 0">Transaction costs of the merger</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,822</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: 0; padding-left: 0">Other receivables</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">7,259</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">535</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: 0; padding-left: 0">Rent security deposit</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,549</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,148</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: 0; padding-left: 0">Restricted cash</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">22,088</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: 0; padding-left: 0"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; text-indent: 0; padding-left: 0"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">33,945</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">33,438</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: 0; padding-left: 0"> </td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: 0; padding-left: 0">Current</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">20,574</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,202</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt; text-indent: 0; padding-left: 0">Non-current</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">13,371</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">24,236</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: 0; padding-left: 0"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt; text-indent: 0; padding-left: 0"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">33,945</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">33,438</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
13315000
8667000
9822000
7259000
535000
3549000
2148000
22088000
33945000
33438000
20574000
9202000
13371000
24236000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 1,<br />
2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Disposals</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31, <br />
2018</b></font></p></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 40%; text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: justify; padding-left: 5.4pt"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; padding-left: 2.85pt">Cost</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">348,441</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">348,441</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,<br />
2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Disposals</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,<br />
2019</b></font></p></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 40%; text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: justify; padding-left: 5.4pt"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; padding-left: 0in">Cost</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">348,441</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">348,441</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; text-align: justify">In percent</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: justify">Discount rate</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">12.4</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">15.7</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">Terminal Value Growth Rate</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.0</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.0</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify">Budgeted EBITDA Growth Rate</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">14.0</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">14.8</td><td style="text-align: left"> </td></tr>
</table>
0.124
0.157
0.030
0.030
0.140
0.148
0.072
Budgeted EBITDA was estimated taking into account past experience and a revenue growth rate projected taking into account the average growth levels experienced over the past 5 years and the estimated sales volume and price growth for the next five years. It was assumed that the sales price would increase in line with forecast inflation over the next five years.
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; width: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"><b>16.</b></font></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b> Income
taxes</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group is subject to income taxes (“ISR”) in Mexico. Under the ISR Law, the rate for 2019, 2018 and 2017 was 30% and
will continue as such in future periods.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Income
tax recognized in profit or loss for the years ended December 31 was comprised of the following:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-align: left; padding-left: 0in">Current tax</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">229,900</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">158,545</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">92,209</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0in">Deferred tax (benefit) expense</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,792</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(8,366</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,742</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 2.85pt"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt; padding-left: 2.85pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">232,692</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">150,179</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">96,951</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Income
tax expense recognized at the effective ISR rate differs from income tax expense at the statutory tax rate. Reconciliation of
income tax expense recognized from statutory to effective ISR rate is as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-align: left">Profit before income tax</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">704,834</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">449,447</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">304,625</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Tax rate</td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30</td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Income tax expense calculated at 30% statutory tax rate</td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">211,450</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">134,834</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">91,388</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Inflation effects, net</td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,278</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,408</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,832</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Non-deductible expenses</td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,202</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,217</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,340</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Other items, net</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">11,762</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,720</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,609</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">232,692</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">150,179</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">96,951</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Realization
of deferred tax assets depends on the future generation of taxable income during the period in which the temporary differences
will be deductible. Management considers the reversal of deferred tax liabilities and projections of future taxable income to
make its assessment on the realization of deferred tax assets. Based on the results obtained in previous years and in future profit
and tax projections, management has concluded that it is probable the deferred tax assets will be realized.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
of December 31, 2019 and 2018, the Group had no tax loss carryforwards.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Composition
of deferred tax asset (liabilities) as well as the reconciliation of changes in deferred taxes balances as of December 31, 2019
and 2018 is presented below:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; padding-left: 0.125in; text-indent: -0.125in; font-weight: bold">Temporary differences</td><td style="border-bottom: Black 1.5pt solid; padding-left: 0.125in; text-indent: -0.125in; font-weight: bold"> </td>
<td style="border-bottom: Black 1.5pt solid; padding-left: 0.125in; text-indent: -0.125in; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 1,<br />
2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Recognized<br />
in profit or loss</td><td style="padding-bottom: 1.5pt; font-weight: bold"><br />
 </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Recognized<br />
in OCI</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Equity</b></font></p></td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,<br />
2018</b></font></p></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.125in; text-indent: -0.125in"> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.125in; text-indent: -0.125in">Deferred tax assets:</td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; width: 38%; text-align: left">Expected credit loss</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">2,499</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">303</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">2,802</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Accruals and provisions</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">19,865</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,838</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(71</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">26,632</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Derivative financial instruments</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,989</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,989</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Property, plant and equipment</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,857</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,783</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">74</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Deferred tax liabilities:</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Intangible assets</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(89,660</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,920</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(87,740</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in">Inventories</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(4,189</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,003</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(6,192</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt">Other assets and prepaid expenses</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(10,294</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(898</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(11,192</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt">Net deferred tax liability</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(78,922</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">8,366</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(71</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(70,627</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
</table>
<p style="margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1.5pt solid; padding-left: 0.125in; text-indent: -0.125in; font-weight: bold; text-align: left; padding-bottom: 1.5pt">Temporary differences</td><td style="border-bottom: Black 1.5pt solid; padding-left: 0.125in; text-indent: -0.125in; font-weight: bold; text-align: left; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; padding-left: 0.125in; text-indent: -0.125in; font-weight: bold; text-align: left; padding-bottom: 1.5pt"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,<br /> 2018</b></font></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Recognized <br />
in profit or <br />
loss</b></font></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Recognized <br />
in OCI</b></font></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Equity</b></font></p>
</td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December
31,<br />
2019</b></font></p>
</td><td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify; width: 38%"> </td><td style="width: 1%"> </td>
<td style="text-align: right; padding-left: 5.4pt; width: 1%"> </td><td style="width: 1%"> </td>
<td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 9%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td>
<td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 9%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td>
<td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 9%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td>
<td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 9%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td>
<td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 9%"> </td><td style="text-align: left; width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Deferred tax assets:</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Expected credit loss</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"></td><td> </td>
<td style="text-align: left">Ps.</td><td style="text-align: right">2,802</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,415</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,217</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Accruals and provisions</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">26,632</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(668</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(26</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">25,938</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Derivative financial instruments</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,989</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(4,989</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Property, plant and equipment</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">74</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,505</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,579</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Deferred tax liabilities:</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Intangible assets</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(87,740</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,920</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(85,820</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in">Inventories</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(6,192</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(3,161</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(9,353</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Derivative financial instruments</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(89</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(89</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt">Other assets and prepaid expenses</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(11,192</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,699</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(13,891</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt">Net deferred tax liability</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(70,627</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,766</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(26</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(73,419</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-align: left; padding-left: 0in">Current tax</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">229,900</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">158,545</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">92,209</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0in">Deferred tax (benefit) expense</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,792</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(8,366</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,742</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 2.85pt"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt; padding-left: 2.85pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">232,692</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">150,179</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">96,951</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-align: left">Profit before income tax</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">704,834</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">449,447</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">304,625</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Tax rate</td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30</td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Income tax expense calculated at 30% statutory tax rate</td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">211,450</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">134,834</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">91,388</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Inflation effects, net</td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,278</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,408</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,832</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Non-deductible expenses</td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,202</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,217</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,340</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Other items, net</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">11,762</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,720</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,609</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">232,692</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">150,179</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">96,951</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b></b></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; padding-left: 0.125in; text-indent: -0.125in; font-weight: bold">Temporary differences</td><td style="border-bottom: Black 1.5pt solid; padding-left: 0.125in; text-indent: -0.125in; font-weight: bold"> </td>
<td style="border-bottom: Black 1.5pt solid; padding-left: 0.125in; text-indent: -0.125in; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 1,<br />
2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Recognized<br />
in profit or loss</td><td style="padding-bottom: 1.5pt; font-weight: bold"><br />
 </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Recognized<br />
in OCI</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Equity</b></font></p></td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,<br />
2018</b></font></p></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.125in; text-indent: -0.125in"> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.125in; text-indent: -0.125in">Deferred tax assets:</td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; width: 38%; text-align: left">Expected credit loss</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">2,499</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">303</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">2,802</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Accruals and provisions</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">19,865</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,838</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(71</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">26,632</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Derivative financial instruments</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,989</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,989</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Property, plant and equipment</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,857</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,783</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">74</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Deferred tax liabilities:</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Intangible assets</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(89,660</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,920</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(87,740</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in">Inventories</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(4,189</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,003</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(6,192</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt">Other assets and prepaid expenses</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(10,294</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(898</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(11,192</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt">Net deferred tax liability</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(78,922</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">8,366</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(71</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(70,627</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
</table>
<p style="margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1.5pt solid; padding-left: 0.125in; text-indent: -0.125in; font-weight: bold; text-align: left; padding-bottom: 1.5pt">Temporary differences</td><td style="border-bottom: Black 1.5pt solid; padding-left: 0.125in; text-indent: -0.125in; font-weight: bold; text-align: left; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; padding-left: 0.125in; text-indent: -0.125in; font-weight: bold; text-align: left; padding-bottom: 1.5pt"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,<br /> 2018</b></font></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Recognized <br />
in profit or <br />
loss</b></font></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Recognized <br />
in OCI</b></font></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Equity</b></font></p>
</td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December
31,<br />
2019</b></font></p>
</td><td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify; width: 38%"> </td><td style="width: 1%"> </td>
<td style="text-align: right; padding-left: 5.4pt; width: 1%"> </td><td style="width: 1%"> </td>
<td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 9%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td>
<td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 9%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td>
<td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 9%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td>
<td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 9%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td>
<td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 9%"> </td><td style="text-align: left; width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Deferred tax assets:</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Expected credit loss</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"></td><td> </td>
<td style="text-align: left">Ps.</td><td style="text-align: right">2,802</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,415</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,217</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Accruals and provisions</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">26,632</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(668</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(26</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">25,938</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Derivative financial instruments</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,989</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(4,989</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Property, plant and equipment</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">74</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,505</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,579</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Deferred tax liabilities:</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Intangible assets</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(87,740</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,920</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(85,820</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in">Inventories</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(6,192</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(3,161</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(9,353</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Derivative financial instruments</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(89</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(89</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt">Other assets and prepaid expenses</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(11,192</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,699</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(13,891</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: justify"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt">Net deferred tax liability</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(70,627</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,766</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(26</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(73,419</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"><b>12.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Intangible
assets, net</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">Acquisition cost:</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 1,<br />
2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Disposals</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,<br />
2018</b></font></p></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Brand</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">253,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">253,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Customer relationships</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">64,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">64,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Software</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">17,135</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">17,135</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1.5pt; text-indent: -5.4pt; padding-left: 5.4pt">Brands and logo rights</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,072</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,137</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,209</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: center; padding-bottom: 1.5pt; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">322,072</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">18,272</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">340,344</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">Accumulated amortization:</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 1,<br />
2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Depreciation<br />
expense</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Eliminated on<br />
disposals</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,<br />
2018</b></font></p></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Customer relationships</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">(18,133</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">(6,400</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">(24,533</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -5.4pt; padding-left: 5.4pt">Brands and logo rights</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,468</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(244</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,712</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1.5pt; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(21,601</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(6,644</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(28,245</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">Acquisition cost:</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,<br />
2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Disposals</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,<br />
2019</b></font></p></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Brand</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">253,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">253,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Customer relationships</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">64,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">64,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Software</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">17,135</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,516</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">21,651</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1.5pt; text-indent: -5.4pt; padding-left: 5.4pt">Brands and logo rights</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,209</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,399</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7,608</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: center; padding-bottom: 1.5pt; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">340,344</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,915</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">346,259</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">Accumulated amortization:</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,<br />
2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Depreciation<br />
expense</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Eliminated on<br />
disposals</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,<br />
2019</b></font></p></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Customer relationships</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">(24,533</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">(6,400</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">(30,933</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Software</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(421</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(421</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -5.4pt; padding-left: 5.4pt">Brands and logo rights</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,712</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(228</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,940</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1.5pt; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(28,245</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(7,049</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(35,294</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
of December 31, 2019 and 2018, a carrying amount of Ps. 253,000 for the value of “Betterware” brand is presented in
the combined statements of financial position. Such brand was transmitted to the Group through a merger carried out on July 28,
2017 with Strevo (a related party, under common control). Strevo obtained such brand when acquiring the majority of the Group’s
shares in March 2015.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
of December 31, 2019 and 2018, a carrying amount of Ps. 33,067 and Ps. 39,467, respectively, for the value of the Group’s
intangible asset comprised of relationships with customers, is presented in the combined statements of financial position. Such
intangible asset was transmitted to the Group through the merger carried out on July 28, 2017 with Strevo as previously discussed.
This intangible asset has a useful life of ten years and is being amortized on a straight line basis.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Additionally,
as of December 31, 2019 and 2018, the intangible asset line in the combined statement of financial position includes Ps. 3,668
and Ps. 2,497, respectively, corresponding to paid rights related to registration of brands and logos before the intellectual
property authorities. Such rights are valid ranging a defined period from 10 to 30 years and therefore, are amortized over such
useful lives.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">At
each reporting date, the Group reviews the carrying amounts of its non-financial assets to determine whether there is any indication
of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. As of December 31, 2019
and 2018, no indications of impairment have been identified.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
relation to impairment of intangible assets with indefinite useful life (brand), the Group estimates the recoverable amount of
the intangible asset which is based on fair value less costs of disposal, estimated using discounted cash flows. The fair value
measurement was categorized as a Level 3 fair value based on the inputs in the valuation technique used. Key assumptions are the
same as those used for estimating the recoverable amount for Goodwill. See Note 11.</font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"><tr style="vertical-align: bottom"><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">Acquisition cost:</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 1,<br />
2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Disposals</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,<br />
2018</b></font></p></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Brand</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">253,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">253,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Customer relationships</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">64,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">64,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Software</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">17,135</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">17,135</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1.5pt; text-indent: -5.4pt; padding-left: 5.4pt">Brands and logo rights</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,072</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,137</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,209</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: center; padding-bottom: 1.5pt; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">322,072</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">18,272</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">340,344</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">Accumulated amortization:</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 1,<br />
2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Depreciation<br />
expense</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Eliminated on<br />
disposals</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,<br />
2018</b></font></p></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Customer relationships</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">(18,133</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">(6,400</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">(24,533</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -5.4pt; padding-left: 5.4pt">Brands and logo rights</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,468</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(244</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,712</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1.5pt; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(21,601</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(6,644</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(28,245</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">Acquisition cost:</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,<br />
2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Disposals</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,<br />
2019</b></font></p></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Brand</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">253,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">253,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Customer relationships</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">64,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">64,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Software</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">17,135</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,516</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">21,651</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1.5pt; text-indent: -5.4pt; padding-left: 5.4pt">Brands and logo rights</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,209</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,399</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7,608</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: center; padding-bottom: 1.5pt; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">340,344</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,915</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">346,259</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">Accumulated amortization:</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,<br />
2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Depreciation<br />
expense</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Eliminated on<br />
disposals</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,<br />
2019</b></font></p></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Customer relationships</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">(24,533</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">(6,400</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">(30,933</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt">Software</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(421</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(421</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -5.4pt; padding-left: 5.4pt">Brands and logo rights</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,712</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(228</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,940</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1.5pt; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(28,245</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(7,049</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(35,294</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr></table>
310965000
312099000
322072000
253000000
253000000
64000000
64000000
17135000
21651000
6209000
7608000
253000000
64000000
5072000
253000000
253000000
33067000
39467000
3668000
2497000
5915000
18272000
4516000
1399000
17135000
1137000
-35294000
-28245000
-21601000
-24533000
-30933000
-421000
-3712000
-3940000
-18133000
-3468000
7049000
6644000
6400000
421000
228000
6400000
244000
704834000
449446000
304625000
0.30
0.30
0.30
211450000
134834000
91388000
6278000
6408000
4832000
3202000
3217000
2340000
11762000
5720000
-1609000
229900000
158545000
92209000
2792000
-8366000
4742000
232692000
150179000
96951000
2415000
303000
-668000
6838000
-4989000
4989000
4505000
-2783000
-26000
-71000
2499000
2802000
5217000
19865000
26632000
25938000
4989000
2857000
74000
4579000
-89660000
-87740000
-85820000
-4189000
-6192000
-9353000
-89000
-10294000
-11192000
-13891000
-78922000
-70627000
-73419000
1920000
1920000
-3161000
-2003000
-89000
-2699000
-898000
-2766000
8366000
-26000
-71000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.65pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"><b>5.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Cash
and cash equivalents</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left">Cash on hand in banks</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">96,008</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">46,445</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Time deposits</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">117,689</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">130,938</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">213,697</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">177,383</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
of December 31, 2018, cash and cash equivalents balance excluded an amount of Ps. 22,088 of restricted cash derived from the credit
with MCRF P, S.A. de C.V. SOFOM, E.N.R. The amount equaled one quarter of the interest accrued under the credit agreement (see
Note 15) and was presented as non-current asset in the combined statement of financial position (see Note 9) and under financing
activities in the combined statements of cash flows. As of December 31, 2019, there was no restricted cash as the bank waived
the covenant for the remaining period of the loan.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"><b>8.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Prepaid
expenses</b></font></td></tr></table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; padding-left: 0in">Printed catalogs</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">21,692</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">19,406</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 0in">Advances to suppliers</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">12,973</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">11,471</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 0in">Premiums paid in advance for insurance</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,628</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8,948</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt; padding-left: 0in">Other</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">8,891</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,458</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0in"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt; padding-left: 0in"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">53,184</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">42,283</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"><b>10.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Property,
plant and equipment, net</b></font></td></tr></table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left">Acquisition cost</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">305,874</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">123,249</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(98,524</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(80,277</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">207,350</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">42,972</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">Acquisition cost:</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 1,<br />
2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Disposals</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December
31,<br />
2018</b></font></p></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%">Molds</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">29,155</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">8,360</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">37,515</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Vehicles</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">40,349</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">306</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(39,053</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,602</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Computers and equipment</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">47,628</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">12,042</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(30</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">59,640</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Leasehold improvements</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">23,932</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">560</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">24,492</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">141,064</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">21,268</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(39,083</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">123,249</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">Accumulated depreciation:</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 1, <br /> 2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Depreciation<br /> expense</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Eliminated on<br /> disposals</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,<br /> 2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; padding-left: 0in">Molds</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">(21,119</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">(1,844</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">(22,963</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0in">Vehicles</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(21,214</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(3,162</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">22,930</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,446</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 0in">Computers and equipment</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(26,499</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(10,014</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(36,500</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0in">Leasehold improvements</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(15,070</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(4,298</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(19,368</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -5.4pt; padding-left: 0in"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1.5pt; text-indent: -5.4pt; padding-left: 0in"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(83,902</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(19,318</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">22,943</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(80,277</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">Acquisition cost:</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,<br />
2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Disposals</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December
31,<br />
2019</b></font></p></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%">Land</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">47,124</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">47,124</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Molds</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">37,515</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,754</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">41,269</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Vehicles</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,602</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,602</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Computers and equipment</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">59,640</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">7,183</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">66,823</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Leasehold improvements</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">24,492</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,390</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">29,882</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Construction in progress</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">119,174</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">119,174</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">123,249</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">182,625</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">305,874</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">Accumulated depreciation:</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,<br />
2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Depreciation<br />
expense</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Eliminated on<br />
disposals</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,<br />
2019</b></font></p></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%">Molds</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">(22,963</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">(2,685</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">(25,648</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Vehicles</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,446</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(59</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,505</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Computers and equipment</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(36,500</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(11,503</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(48,003</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Leasehold improvements</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(19,368</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(4,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(23,368</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(80,277</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(18,247</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(98,524</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Depreciation
expense is included in administrative expenses line in the combined statement of profit or loss and other comprehensive income.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">No
impairment losses have been determined.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
December 2018, the Group obtained a secured line of credit with Banco Nacional de México, S.A. (Banamex), for up to Ps.
400,000 to build the Group's new corporate headquarters and distribution center (Note 15). For the year ended December 31,
2019, the Group capitalized borrowing costs in the amount of Ps. 9,284 directly related to the distribution center.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left">Cash on hand in banks</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">96,008</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">46,445</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Time deposits</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">117,689</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">130,938</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">213,697</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">177,383</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr></table>
<p style="margin-top: 0; margin-bottom: 0"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; padding-left: 0in">Printed catalogs</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">21,692</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">19,406</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 0in">Advances to suppliers</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">12,973</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">11,471</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 0in">Premiums paid in advance for insurance</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,628</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8,948</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt; padding-left: 0in">Other</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">8,891</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,458</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0in"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt; padding-left: 0in"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">53,184</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">42,283</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr></table>
<p style="margin-top: 0; margin-bottom: 0"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left">Acquisition cost</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">305,874</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">123,249</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(98,524</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(80,277</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">207,350</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">42,972</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">Acquisition cost:</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 1,<br />
2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Disposals</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December
31,<br />
2018</b></font></p></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%">Molds</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">29,155</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">8,360</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">37,515</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Vehicles</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">40,349</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">306</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(39,053</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,602</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Computers and equipment</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">47,628</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">12,042</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(30</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">59,640</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Leasehold improvements</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">23,932</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">560</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">24,492</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">141,064</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">21,268</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(39,083</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">123,249</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">Accumulated depreciation:</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 1, <br /> 2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Depreciation<br /> expense</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Eliminated on<br /> disposals</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,<br /> 2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; padding-left: 0in">Molds</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">(21,119</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">(1,844</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">(22,963</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0in">Vehicles</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(21,214</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(3,162</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">22,930</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,446</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 0in">Computers and equipment</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(26,499</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(10,014</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(36,500</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0in">Leasehold improvements</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(15,070</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(4,298</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(19,368</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -5.4pt; padding-left: 0in"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1.5pt; text-indent: -5.4pt; padding-left: 0in"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(83,902</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(19,318</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">22,943</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(80,277</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">Acquisition cost:</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,<br />
2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Disposals</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December
31,<br />
2019</b></font></p></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%">Land</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">47,124</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">47,124</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Molds</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">37,515</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,754</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">41,269</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Vehicles</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,602</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,602</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Computers and equipment</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">59,640</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">7,183</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">66,823</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Leasehold improvements</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">24,492</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,390</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">29,882</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Construction in progress</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">119,174</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">119,174</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">123,249</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">182,625</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">305,874</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">Accumulated depreciation:</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,<br />
2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Depreciation<br />
expense</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Eliminated on<br />
disposals</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,<br />
2019</b></font></p></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%">Molds</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">(22,963</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">(2,685</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">(25,648</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Vehicles</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,446</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(59</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,505</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Computers and equipment</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(36,500</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(11,503</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(48,003</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Leasehold improvements</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(19,368</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(4,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(23,368</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(80,277</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(18,247</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(98,524</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr></table>
<p style="margin-top: 0; margin-bottom: 0"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap"> </td><td style="white-space: nowrap; padding-bottom: 1.5pt"> </td>
<td style="white-space: nowrap; text-align: right"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">Commissions, <br /> promotions and <br /> other</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">Bonuses and <br /> other employee <br /> benefits</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">Professional <br /> services fees</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total</b></font></p></td><td style="white-space: nowrap; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%">As of January 1, 2018</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">41,324</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">1,158</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">42,482</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Increases</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">247,282</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">56,854</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30,704</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">334,840</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt">Payments</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(252,801</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(56,054</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(29,481</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(338,336</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>As of December 31, 2018</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"></td><td> </td>
<td style="text-align: left">Ps.</td><td style="text-align: right">35,805</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,958</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,223</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">38,986</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Increases</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">345,148</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">90,843</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,026</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">438,017</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Payments</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(348,174</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(79,445</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,695</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(430,314</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">As of December 31, 2019</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">32,779</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">13,356</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">554</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">46,689</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr></table>
213697000
177383000
230855000
96008000
117689000
46445000
130938000
206186000
21692000
19406000
12973000
11471000
529348000
529348000
445241000
445241000
9628000
8948000
8891000
2458000
53184000
42283000
305874000
123249000
141064000
47124000
37515000
41269000
1602000
1602000
59640000
66823000
24492000
29882000
119174000
29155000
40349000
47628000
23932000
98524000
80277000
83902000
22963000
25648000
1446000
1505000
36500000
48003000
19368000
23368000
21119000
21214000
26499000
15070000
207350000
42972000
182625000
3754000
7183000
5390000
21268000
47124000
119174000
8360000
306000
12042000
560000
39083000
39053000
30000
18247000
2685000
59000
11503000
4000000
19318000
1844000
3162000
10014000
4298000
22943000
22930000
13000
400000000
9284000
46689000
38986000
42482000
35805000
32779000
1958000
13356000
1223000
554000
41324000
1158000
438017000
334840000
345148000
90843000
2026000
247282000
56854000
30704000
430314000
338336000
348174000
79445000
2695000
252801000
56054000
29481000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"><b>13.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Leases</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"><i>Right
of use assets, net</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group leases a fleet of cars for its sales staff and qualified employees with different expiration dates, being the latest expiration
date in April 2023. Those leases were recorded as right of use assets as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 1,<br />
2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Disposals</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,<br />
2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 40%; text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: justify; padding-left: 5.4pt"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; padding-left: 0in">Cost</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">36,909</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">36,909</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 1,<br />
2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Disposals</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,<br />
2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 40%; text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: justify; padding-left: 5.4pt"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0in">Accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(13,098</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(13,098</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif">Rental
expense for the year ended December 31, 2018 was Ps. 6,100.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif">As
of December 31, 2019, the Group has commitments derived from short-term lease contracts (Note 26).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Lease
liability</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif">The
lease liabilities as of December 31, 2019 amounted $24,584.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif">The
maturity analysis of total future minimum lease payments, including non-accrued interest, is as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">Year</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; text-indent: -5.4pt; padding-left: 5.4pt">2020</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="white-space: nowrap; width: 1%; text-align: left">Ps </td><td style="width: 9%; text-align: right">15,463</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -5.4pt; padding-left: 5.4pt">2021</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="text-align: right">8,617</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -5.4pt; padding-left: 5.4pt">2022</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="text-align: right">3,310</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -5.4pt; padding-left: 5.4pt">2023</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">29</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: left">Ps  </td><td style="border-bottom: Black 1.5pt solid; text-align: right">27,419</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif">Interest
expense generated from the lease liability amounted to Ps. 3,765 for the year ended December 31, 2019.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 66%; text-align: left; padding-left: 0in">Finished goods</td><td style="width: 1%"> </td>
<td style="width: 9%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">224,025</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">215,812</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0in">Packing material</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,577</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,750</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0in"> </td><td> </td>
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">228,602</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">219,562</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt; padding-left: 0in">Merchandise-in-transit</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">116,952</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">82,644</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; padding-left: 0in"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">345,554</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">302,206</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 1,<br />
2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Disposals</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,<br />
2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 40%; text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: justify; padding-left: 5.4pt"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; padding-left: 0in">Cost</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">36,909</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">36,909</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 1,<br />
2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Disposals</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,<br />
2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 40%; text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: justify; padding-left: 5.4pt"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0in">Accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(13,098</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(13,098</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">Year</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; text-indent: -5.4pt; padding-left: 5.4pt">2020</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="white-space: nowrap; width: 1%; text-align: left">Ps </td><td style="width: 9%; text-align: right">15,463</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -5.4pt; padding-left: 5.4pt">2021</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="text-align: right">8,617</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -5.4pt; padding-left: 5.4pt">2022</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="text-align: right">3,310</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -5.4pt; padding-left: 5.4pt">2023</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">29</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="white-space: nowrap; text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: left">Ps  </td><td style="border-bottom: Black 1.5pt solid; text-align: right">27,419</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr></table>
224025000
215812000
4577000
3750000
228602000
219562000
116952000
82644000
345554000
302206000
-13098000
-13098000
27419000
15463000
8617000
3310000
29000
11605000
6100000
11794000
3765000
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"><b>6.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Trade
accounts receivable</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; padding-left: 0in">Trade account receivables</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">260,727</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">208,116</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 2.85pt"> </td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0in">Expected credit loss</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(13,640</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(9,340</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 2.85pt"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; padding-left: 2.85pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">247,087</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">198,776</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Trade
accounts receivable from customers detailed above are measured at their amortized cost. The average related to the turnover of
accounts receivable is 30 days. No interest is charged on outstanding trade receivables.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group always measures the loss allowance for trade receivables at an amount equal to lifetime ECL. The expected credit losses
on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis
of the debtor's current financial position, adjusted for factors that are specific to the debtors, general economic conditions
of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of conditions
at the reporting date. See Note 20 for information on exposure to credit and market risks.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">There
has been no change in the estimation techniques or significant assumptions made during the current reporting period.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and
there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy
proceedings, or when the trade receivables are over one year past due, whichever occurs earlier. None of the trade receivables
that have been written off is subject to enforcement activities.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
following table details the risk profile of trade receivables based on the Group's provision matrix. As the Group's
historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision
for loss allowance based on past due status is not further distinguished between the Group's different customer base.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="23" style="border-bottom: Black 1.5pt solid; text-align: center"><b>Trade receivables – days past due</b></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">December 31, 2019</td><td style="border-bottom: Black 1.5pt solid"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Not past<br />
due</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">14-21</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">21 – 28</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">>28</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: justify; text-indent: -8.4pt; padding-left: 8.4pt">Expected credit loss rate</td><td style="width: 1%"> </td>
<td style="width: 9%; text-align: center; padding-left: 2.85pt"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">2</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">20</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">49</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">42</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -8.4pt; padding-left: 8.4pt">Estimated total gross carrying amount at default</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 2.85pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">207,032</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,098</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7,045</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">29,807</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">255,982</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 0pt">Expected credit loss</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 2.85pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,950</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,454</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,477</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,634</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">22,515</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="23" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Trade receivables – days past due</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">December 31, 2018</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Not past due</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">14-21</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">21 – 28</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">>28</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: justify; text-indent: -8.4pt; padding-left: 8.4pt">Expected credit loss rate</td><td style="width: 1%"> </td>
<td style="width: 9%; text-align: center; padding-left: 2.85pt"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">1</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">16</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">37</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">38</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -8.4pt; padding-left: 8.4pt">Estimated total gross carrying amount at default</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 2.85pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">194,366</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">13,794</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,681</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">33,438</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">247,279</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 0pt"> Expected credit loss</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 2.85pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,910</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,150</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,108</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,531</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">18,699</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
following table shows the movement in lifetime ECL that has been recognized for trade and other receivables in accordance with
the simplified approach set out in IFRS 9.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 78%; text-align: justify; text-indent: -9pt; padding-left: 10.65pt">Balance as at January 1, 2018</td><td style="width: 1%"> </td>
<td style="width: 9%; text-align: right; padding-left: 2.85pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">(4,333</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -9pt; padding-left: 10.65pt">Expected credit loss</td><td> </td>
<td style="text-align: right; padding-left: 2.85pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(18,699</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 10.65pt">Amounts written off</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 2.85pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">13,692</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -9pt; padding-left: 10.65pt">Balance as at 31 December 2018</td><td> </td>
<td style="text-align: right; padding-left: 2.85pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(9,340</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -9pt; padding-left: 10.65pt">Expected credit loss</td><td> </td>
<td style="text-align: right; padding-left: 2.85pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(22,515</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 10.65pt">Amounts written off</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 2.85pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">18,215</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 4pt; text-indent: -9pt; padding-left: 10.65pt">Balance as at December 31, 2019</td><td style="padding-bottom: 4pt"> </td>
<td style="text-align: right; padding-bottom: 4pt; padding-left: 2.85pt"></td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">Ps.</td><td style="border-bottom: Black 4pt double; text-align: right">(13,640</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"><tr style="vertical-align: bottom"><td></td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; padding-left: 0in">Trade account receivables</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">260,727</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">208,116</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 2.85pt"> </td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0in">Expected credit loss</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(13,640</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(9,340</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 2.85pt"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; padding-left: 2.85pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">247,087</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">198,776</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"><tr style="vertical-align: bottom"><td colspan="23" style="border-bottom: Black 1.5pt solid; text-align: center"><b>Trade receivables – days past due</b></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">December 31, 2019</td><td style="border-bottom: Black 1.5pt solid"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Not past<br />
due</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">14-21</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">21 – 28</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">>28</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: justify; text-indent: -8.4pt; padding-left: 8.4pt">Expected credit loss rate</td><td style="width: 1%"> </td>
<td style="width: 9%; text-align: center; padding-left: 2.85pt"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">2</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">20</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">49</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">42</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -8.4pt; padding-left: 8.4pt">Estimated total gross carrying amount at default</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 2.85pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">207,032</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,098</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7,045</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">29,807</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">255,982</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 0pt">Expected credit loss</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 2.85pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,950</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,454</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,477</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,634</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">22,515</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="23" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Trade receivables – days past due</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">December 31, 2018</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Not past due</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">14-21</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">21 – 28</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">>28</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: justify; text-indent: -8.4pt; padding-left: 8.4pt">Expected credit loss rate</td><td style="width: 1%"> </td>
<td style="width: 9%; text-align: center; padding-left: 2.85pt"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">1</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">16</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">37</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">38</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -8.4pt; padding-left: 8.4pt">Estimated total gross carrying amount at default</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 2.85pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">194,366</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">13,794</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,681</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">33,438</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">247,279</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 0pt"> Expected credit loss</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 2.85pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,910</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,150</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,108</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,531</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">18,699</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"><tr style="vertical-align: bottom"><td style="text-align: justify"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 78%; text-align: justify; text-indent: -9pt; padding-left: 10.65pt">Balance as at January 1, 2018</td><td style="width: 1%"> </td>
<td style="width: 9%; text-align: right; padding-left: 2.85pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">(4,333</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -9pt; padding-left: 10.65pt">Expected credit loss</td><td> </td>
<td style="text-align: right; padding-left: 2.85pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(18,699</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 10.65pt">Amounts written off</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 2.85pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">13,692</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -9pt; padding-left: 10.65pt">Balance as at 31 December 2018</td><td> </td>
<td style="text-align: right; padding-left: 2.85pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(9,340</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -9pt; padding-left: 10.65pt">Expected credit loss</td><td> </td>
<td style="text-align: right; padding-left: 2.85pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(22,515</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 10.65pt">Amounts written off</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 2.85pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">18,215</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 4pt; text-indent: -9pt; padding-left: 10.65pt">Balance as at December 31, 2019</td><td style="padding-bottom: 4pt"> </td>
<td style="text-align: right; padding-bottom: 4pt; padding-left: 2.85pt"></td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">Ps.</td><td style="border-bottom: Black 4pt double; text-align: right">(13,640</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
</table>
247087000
198776000
266938000
198776000
13640000
9340000
247087000
198776000
0.02
0.20
0.49
0.42
0.01
0.16
0.37
0.38
255982000
247279000
207032000
12098000
7045000
29807000
194366000
13794000
5681000
33438000
22515000
18699000
3950000
2454000
3477000
12634000
1910000
2150000
2108000
12531000
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"><b>14.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Accounts
payable to suppliers</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Trade
payables and accruals principally comprise amounts outstanding for trade purchases and ongoing costs.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
average payment period is 4 months, with no interest charged. The Group has financial risk management policies in place to ensure
that all payables are paid within the pre-agreed credit terms.</font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"><tr style="vertical-align: bottom"><td style="padding-left: 0.125in; text-indent: -0.125in"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.125in; width: 74%; text-align: left; padding-left: 0.125in">Line of credit with MCRF P, S.A. de C.V. SOFOM, E.N.R. of Ps. 600,000, bearing interest at a fixed rate of 13.10%. This line of credit is payable on a quarterly basis starting May 15, 2019 through May 15, 2023. BLSM Latino América Servicios, S.A. de C.V., is a guarantor in this loan.</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: right"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">516,597</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">592,252</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: 0in; padding-left: 0.125in"> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.125in; text-align: left; padding-left: 0.125in">Secured line of credit with Banamex, for up to Ps. 400,000, bearing interest at the TIIE rate plus 317 basis point. Withdrawals from this line of credit can be made during a 10-month period starting December 15, 2018, and are payable on a quarterly basis from December 17, 2019 up to December 18, 2025.</td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">135,209</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in"> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.125in; text-align: left; padding-left: 0.125in">Unsecured line of credit with Banamex, for up to Ps. 80,000, bearing interest at the TIIE rate plus 275 basis points (renewable on a yearly basis).</td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: 0in; padding-left: 0.125in"> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Unsecured line of credit with Banamex, for up to US$ 1,800, bearing interest at LIBOR rate plus 300 basis point. Maturity was on March 31, 2018.</td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: 0in; padding-left: 0.125in"> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: 0in; padding-left: 0pt">Interest payable</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">10,907</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">11,227</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: 0in; padding-left: 0.125in"> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: 0in; padding-left: 0pt">Total debt</td><td> </td>
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">677,713</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">653,479</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: 0in; padding-left: 0.125in"> </td><td> </td>
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: 0in; padding-left: 0pt">Less: Current portion</td><td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">148,070</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">90,691</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: 0in; padding-left: 0.125in"> </td><td> </td>
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: 0in; padding-left: 0pt">Long-term debt</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">529,643</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">562,788</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: justify"> </td><td style="white-space: nowrap; padding-bottom: 1.5pt"> </td>
<td style="white-space: nowrap; text-align: right"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">Long-term<br />
debt</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">Interest<br />
payable</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">Derivative<br />
financial<br />
instruments, net</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 62%">Balances as of January 1, 2018 (1)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">607,250</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">10,043</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-align: justify">Changes that represent cash flows -</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.25in; text-align: justify">Loans obtained</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">50,667</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.25in; text-align: justify">Restricted cash</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,001</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.25in; text-align: justify">Payments</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(36,829</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(85,159</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.25in; text-align: justify">Commissions and debt issuance cost</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(667</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-align: justify">Changes that do not represent cash flows -</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.25in; text-align: justify">Interest expense</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">86,343</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.25in; text-align: justify">Valuation effects of derivative financial instruments</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16,629</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.25in; text-align: justify; padding-bottom: 1.5pt">Amortization of commissions and debt issuance cost</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,744</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Balances as of December 31, 2018 (1)</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"></td><td> </td>
<td style="text-align: left">Ps.</td><td style="text-align: right">620,164</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">11,227</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16,629</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-align: justify">Changes that represent cash flows -</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.25in; text-align: justify">Loans obtained</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">104,500</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.25in; text-align: justify">Restricted cash</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">22,940</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.25in; text-align: justify">Payments</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(82,996</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(76,465</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.25in; text-align: justify">Commissions and debt issuance cost</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-align: justify">Changes that do not represent cash flows -</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.25in; text-align: justify">Interest expense</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">85,429</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.25in; text-align: justify">Borrowing costs capitalized on PP&E</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(9,284</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.25in; text-align: justify">Valuation effects of derivative financial instruments</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,680</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.25in; text-align: justify; padding-bottom: 1.5pt">Amortization of commissions and debt issuance cost</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,198</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0; text-align: justify; padding-bottom: 1.5pt">Balances as of December 31, 2019</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">666,806</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">10,907</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">32,309</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 46.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 18pt"><font style="font: 10pt Times New Roman, Times, Serif">(1)</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Balances
in column "Long-term debt", are presented net of restricted cash balances
as of December 31, 2018. See Note 5 for details about restricted cash.</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"><tr style="vertical-align: bottom"><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">Year</td><td style="border-bottom: Black 1.5pt solid"> </td>
<td style="border-bottom: Black 1.5pt solid"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td><td> </td>
<td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-left: 0">2021</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">185,447</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 0">2022</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">169,312</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 0">2023</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">245,343</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 0">2024</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">23,611</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0">2025</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">54,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">677,713</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
-516597000
-592252000
-135209000
-50000000
400000
-15000000
-10907000
-11227000
148070000
90691000
529643000
562788000
666806000
10907000
32309000
50667000
104500000
-2001000
22940000
-36829000
-85159000
-82996000
-76465000
667000
85429000
86343000
118205000
86343000
85429000
-9284000
16629000
15680000
1744000
2198000
185447000
169312000
245343000
23611000
54000000
677713000
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif"><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>19.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Employee
benefits</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"><b>Post-employment
benefits – </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group recognizes the liability and corresponding impacts to profit and loss as well as comprehensive income regarding to the seniority
premiums to be paid to its employees. This benefit is determined considering the years of service and the compensation from the
employees.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
components of the defined benefit liability for the years ended at December 31, 2019, 2018 and 2017, are as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>a)</i></b></font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Movement
in net defined liability </i></b><i>– </i></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
following table shows a reconciliation from the opening balances to the closing balances for the net defined benefit liability
and its components:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%">Balance at January 1</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="width: 9%; text-align: right">1,355</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">1,283</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-style: italic; text-align: left">Included in profit or loss:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Current service cost</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">424</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">441</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Interest cost</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">123</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">92</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; padding-bottom: 1.5pt">Net cost of the period</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">547</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">533</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-style: italic; text-align: left">Included in OCI:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Actuarial loss (gain)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(102</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(165</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Income tax effect</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(26</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(71</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; font-style: italic">Other:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Benefits paid</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(196</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(225</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt">Balance as of December 31</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,630</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,355</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>b)</i></b></font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Actuarial
assumptions – </i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
following were the principal actuarial assumptions at the reporting date (expressed as weighted averages):</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold">Financial:</td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 10pt; width: 64%; text-align: left">Future salary growth</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">6.6</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">4.8</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">4.5</td><td style="width: 1%; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Discount rate</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7.1</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">9.2</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7.4</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold">Demographic:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 10pt">Number of employees</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">654</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">684</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">622</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt">Age average</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">35 years</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">35 years</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">36 years</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 10pt; padding-bottom: 1.5pt">Longevity average</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">3 years</font></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2 years</font></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2 years</font></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>c)</i></b></font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Sensitivity
analysis – </i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Reasonably
possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would
have affected the defined benefit obligation considering a change of ±0.50% in the discount rate.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Effects
at December 31, 2019</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Effects
at December 31, 2018</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-family: Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-family: Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: left; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif">Increase
/ decrease in the discount rate</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Times New Roman, Times, Serif; padding-left: 10pt; width: 76%; text-align: left"><font style="font-family: Times New Roman, Times, Serif">+0.50%</font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif">(127</font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif">)</font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif">(93</font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif">)</font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; padding-left: 10pt; text-align: left; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif">-0.50%</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">115</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">103</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"><tr style="vertical-align: bottom"><td></td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%">Balance at January 1</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="width: 9%; text-align: right">1,355</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">1,283</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-style: italic; text-align: left">Included in profit or loss:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Current service cost</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">424</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">441</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Interest cost</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">123</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">92</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; padding-bottom: 1.5pt">Net cost of the period</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">547</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">533</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-style: italic; text-align: left">Included in OCI:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Actuarial loss (gain)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(102</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(165</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Income tax effect</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(26</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(71</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; font-style: italic">Other:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Benefits paid</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(196</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(225</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt">Balance as of December 31</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,630</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,355</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"><tr style="vertical-align: bottom"><td></td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold">Financial:</td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 10pt; width: 64%; text-align: left">Future salary growth</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">6.6</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">4.8</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">4.5</td><td style="width: 1%; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Discount rate</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7.1</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">9.2</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7.4</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold">Demographic:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 10pt">Number of employees</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">654</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">684</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">622</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt">Age average</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">35 years</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">35 years</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">36 years</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 10pt; padding-bottom: 1.5pt">Longevity average</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">3 years</font></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2 years</font></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2 years</font></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"><tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Effects
at December 31, 2019</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Effects
at December 31, 2018</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-family: Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-family: Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: left; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif">Increase
/ decrease in the discount rate</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Times New Roman, Times, Serif; padding-left: 10pt; width: 76%; text-align: left"><font style="font-family: Times New Roman, Times, Serif">+0.50%</font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif">(127</font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif">)</font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif">(93</font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif">)</font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; padding-left: 10pt; text-align: left; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif">-0.50%</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">115</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">103</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr></table>
0.066
0.048
0.045
0.071
0.092
0.074
654
684
622
P35Y0M0D
P35Y0M0D
P36Y0M0D
P3Y0M0D
P3Y0M0D
P2Y0M0D
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"><tr style="vertical-align: bottom"><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif">Net
parent investment</font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">2019</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">2018</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-family: Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-family: Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Times New Roman, Times, Serif; width: 76%; text-align: justify"><font style="font-family: Times New Roman, Times, Serif">Capital stock</font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif">55,985</font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif">55,985</font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif">Retained earnings</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">218,376</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">24,234</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif">Other comprehensive
income</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">121</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">45</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">274,482</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">80,264</font></td><td style="padding-bottom: 1.5pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 0; text-indent: 0"></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>20.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Financial
instruments</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Below
is the categorization of the financial instruments, excluding cash and cash equivalents, held by the Group as of December 31,
2019 and 2018, as well as the indication of fair value hierarchy level, when applicable:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Accounting
classification and fair values</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold">As of December 31, 2019</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Receivables, Payables, and Loans</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Fair value through profit or loss</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Fair value hierarchy level</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td>Financial assets -</td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 10pt; width: 64%; text-align: left">Trade receivables</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="width: 9%; text-align: right">266,938</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"></td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Other receivables</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,867</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right">       </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0pt; padding-bottom: 1.5pt">Total</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">272,805</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0pt; text-align: left">Financial liabilities -</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 10pt">Debt</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">677,713</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt; text-align: left">Accounts payable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">529,348</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Derivative financial instruments</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">32,309</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">32,309</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right">2</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Total</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,239,370</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">32,309</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">As of December 31, 2018</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Receivables, Payables, and Loans</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Fair value through profit or loss</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Fair value hierarchy level</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td>Financial assets -</td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 10pt; width: 64%; text-align: left">Trade receivables</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="width: 9%; text-align: right">198,776</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Other receivables</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">536</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right">      </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Total</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">199,312</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Financial liabilities -</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 10pt">Debt</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">653,479</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt; text-align: left">Accounts payable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">445,241</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Derivative financial instruments</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">16,629</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">16,629</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right">2</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Total</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,115,349</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">16,629</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Measurements
of fair values</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Fair
value hierarchy levels 1 to 3 are based on the degree to which the fair value is observable:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; width: 21.3pt; text-indent: 0; vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif">Level
1 fair value measurements are those derived from quoted prices (unadjusted) in active
markets for identical assets or liabilities;</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 49.65pt; text-align: justify; text-indent: -21.3pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; width: 21.3pt; text-indent: 0; vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif">Level
2 fair value measurements are those derived from inputs other than quoted prices included
within Level 1 that are observable for the asset or liability, either directly (i.e.
as prices) or indirectly (i.e. derived from prices); and</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 49.65pt; text-align: justify; text-indent: -21.3pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; width: 21.3pt; text-indent: 0; vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif">Level
3 fair value measurements are those derived from valuation techniques that include inputs
for the asset or liability that are not based on observable market data (unobservable
inputs).</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
previously disclosed, some of the Group's financial liabilities are measured at fair value at the end of each reporting
period. The following table gives information about how the fair values of these financial liabilities are determined (in particular,
the valuation technique(s) and inputs used).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="border: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding: 2pt; vertical-align: bottom; width: 21%; text-align: left; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Financial
assets/ financial liabilities</b></font></td>
<td style="border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; padding: 2pt; width: 41%; text-align: center; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Valuation
technique(s) and key input(s)</b></font></td>
<td style="border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; padding: 2pt; width: 19%; text-align: center; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Significant<br />
unobservable input(s)</b></font></td>
<td style="border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; padding: 2pt; width: 19%; text-align: center; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Relationship
and sensitivity of unobservable inputs to fair value</b></font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding: 2pt; text-align: left; text-indent: 0; vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">Foreign
currency forward contracts and interest rate swaps (Note 18)</font></td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding: 2pt; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif">Discounted
cash flows.<br />
Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the
reporting period) and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties.</font></td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding: 2pt; vertical-align: top; text-align: center; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif">N/A</font></td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding: 2pt; vertical-align: top; text-align: center; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif">N/A</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">There
were no transfers between Level 1 and 2 during the current or prior year.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Fair
value of debt that is not measured at fair value (but fair value disclosures are required)</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
fair value of debt, which is subsequently measured at amortized cost using the effective interest method, amounted Ps. 679,188
and was classified as Level 2. Fair value was calculated using the discounted cash flow method and the Mexican risk-free rate
(TIIE), adjusted by credit risk, was used for discounting future cash flows.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Financial
risk management </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group's Treasury function provides services to the business, coordinates access to domestic and international financial
markets, monitors and manages the financial risks relating to the operations of the Group through internal risk reports which
analyses exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk,
and price risk), credit risk, liquidity risk.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group seeks to minimize the effects of these risks by using derivative financial instruments to hedge these risk exposures. The
use of financial derivatives is governed by the Group's policies approved by the board of directors, which provide written
principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial
instruments, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed by the internal
auditors on a continuous basis. The Group does not enter into or trade financial instruments, including derivative financial instruments,
for speculative purposes.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Market
risk</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group's activities expose it primarily to the financial risks of changes in exchange rates and interest rates (see below).
The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign currency
risk, including:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; width: 28.35pt; text-indent: 0; vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif">In
order to reduce the risks related to fluctuations in the exchange rate of foreign currency,
the Group uses derivative financial instruments such as forwards to adjust exposures
resulting from foreign exchange currency.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify; text-indent: -28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; width: 28.35pt; text-indent: 0; vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif">Additionally,
the Group occasionally uses interest rate swaps to adjust its exposure to the variability
of the interest rates or to reduce their financing costs. The Group's practices
vary from time to time depending on judgments about the level of risk, expectations of
change in the movements of interest rates and the costs of using derivatives. </font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 35.4pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">See
Note 18 for disclosure of the derivatives derivative financial instruments entered into as of and for the year ended December
31, 2019 and 2018.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Exchange
risk management</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group undertakes transactions denominated in foreign currencies, mainly U.S. dollars; consequently, exposures to exchange rate
fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilizing forward foreign exchange contracts.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
carrying amounts of the Group's U.S. dollars denominated financial assets and financial liabilities at the reporting date
are as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Assets</td><td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">US$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,331</font></td><td> </td><td> </td>
<td colspan="2" style="text-align: right">1,294</td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 76%; padding-bottom: 1.5pt">Liabilities</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">(16,095</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">(12,075</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Net position</td><td> </td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">US$</font></td><td style="text-align: right">(14,764</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(10,781</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Closing exchange rate of the year</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">18.8452</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">19.6566</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Exchange
rate sensitivity analysis</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group is mainly exposed to variations in the Mexican Peso / the U.S. Dollar exchange rate. For sensitivity analysis purposes,
the Group has determined a 10 percent increase and decrease in Ps. currency units against the U.S. dollar ("relevant currency").
10 percent is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents
management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only
outstanding foreign currency denominated financial assets/liabilities and adjusts their translation at the year-end for a 10 percent
change in foreign currency rates. A positive number below indicates an increase in profit where currency units strengthen 10 percent
against the relevant currency. For a 10 percent weakening of currency units against the relevant currency, there would be a comparable
impact on the profit, and the balances below would be negative.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 88%; text-align: justify; padding-bottom: 1.5pt"> </td><td style="width: 1%; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; font-weight: bold; text-align: center">2019</td><td style="width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Profit</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; text-align: right">27,823</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Foreign
exchange forward contracts</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">It
is the policy of the Group to enter into foreign exchange forward contracts to manage the foreign currency risk associated with
anticipated purchase transactions up to 6 months. Basis adjustments are made to the initial carrying amounts of inventories when
the anticipated purchases take place.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">See
Note 18 with details on foreign currency forward contracts outstanding at the end of the reporting period. Foreign currency forward
contract liabilities are presented in the line 'Derivative financial instruments' within the combined statement of
financial position.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group has entered into contracts to purchase raw materials from suppliers in China, with such purchases denominated in U.S. dollars.
The Group has entered into foreign exchange forward contracts to hedge the exchange rate risk arising from these anticipated future
purchases.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Interest
rate risk management</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group is exposed to interest rate risk because the Group borrows funds at variable interest rates. The risk is managed by the
Group by maintaining an appropriate balance between fixed and variable rate borrowings, and by the use of interest rate swap contracts.
Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite; ensuring the most cost-effective
hedging strategies are applied.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group's exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management
section of this note.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Interest
rate sensitivity analysis</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
sensitivity analyses below have been determined based on the exposure to interest rates at the reporting date. For floating rate
liabilities, the analysis is prepared assuming the amount of the liability outstanding at the reporting date was outstanding during
the year. A one per cent increase or decrease is used when reporting interest rate risk internally to key management personnel
and represents management's assessment of the reasonably possible change in interest rates.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">If
interest rates had been one per cent higher/lower and all other variables were held constant, the Group's profit for the
year ended December 31, 2019 would decrease/increase by Ps. 1,352. This is attributable to the Group's exposure to interest
rates on its variable rate borrowing as described in Note 15.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Interest
rate swap contracts</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Under
interest rate swap contracts, the Group agrees to exchange the difference between fixed and variable rate interest amounts calculated
on agreed notional principal amounts. Such contracts enable the Group to mitigate the risk of changing interest rates on the cash
flow exposures on the issued variable rate debt held. The fair value of interest rate swaps at the reporting date is determined
by discounting the future cash flows using the curves at the reporting date and the credit risk inherent in the contract, and
is disclosed in Note 18. The average interest rate is based on the outstanding balances at the end of the financial year.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Credit
risk management</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group's exposure to credit risk is not significant as no customer represents more than 10% of combined sales and receivables.
The concentration of credit risk is limited due to the fact that the customer base is large and unrelated, spread across diverse
geographical areas. Credit policy has been implemented for each customer establishing purchase limits. Customers who do not satisfy
the credit references set out by the Group, can only carry out transactions with the Group through prepayment.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">See
Note 6 for further details on Trade Receivables and allowance for doubtful accounts.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Collateral
held as security and other credit enhancements</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group does not hold any collateral or other credit enhancements to cover its credit risks associated with its financial assets.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Overview
of the Group's exposure to credit risk</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Credit
risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group.
As of 31 December 2019, the Group's maximum exposure to credit risk without taking into account any collateral held or other
credit enhancements, which will cause a financial loss to the Group due to failure to discharge an obligation by the counterparties
and financial guarantees provided by the Group, arises from the carrying amount of the respective recognized financial assets
as stated in the combined statement of financial position.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
trade receivables, the Group has applied the simplified approach in IFRS 9 to measure the loss allowance at lifetime ECL. The
Group determines the expected credit losses on these items by using a provision matrix, estimated based on historical credit loss
experience based on the past due status of the debtors, adjusted as appropriate to reflect current conditions and estimates of
future economic conditions. Accordingly, the credit risk profile of these assets is presented based on their past due status in
terms of the provision matrix. Note 6, includes further details on the loss allowance for these assets respectively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Liquidity
risk management</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate
liquidity risk management framework for management of the Group's short, medium and long-term funding and liquidity management
requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities, and reserve borrowing facilities,
by continuously monitoring the forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
Details of additional undrawn facilities that the Group has at its disposal to further reduce liquidity risk are set out below.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Liquidity
maturity analysis</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group manages its liquidity risk by maintaining adequate reserves of cash and bank credit lines available and consistently monitoring
its projected and actual cash flows. The maturity analysis of lease liabilities is presented in Note 13 and long-term debt maturities
are presented in Note 15.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group has access to financing facilities as described below, of which Ps. 260,500 were unused at the reporting date. The Group
expects to meet its other obligations from operating cash flows and proceeds of maturing financial assets.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">Bank credit lines</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: justify">Amount used</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="width: 9%; text-align: right">656,459</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">650,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1.5pt">Amount not used</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">260,500</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">350,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1.5pt">Total credit lines</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; text-align: right">916,959</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,000,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
following tables detail the Group's remaining contractual maturity for its financial liabilities with agreed repayment periods.
The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the Group can be required to pay. The table includes both interest and principal cash flows.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold">As of December 31, 2019</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Less than 1 year</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Over 1 year and</b></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>less than 5 years</b></font></p></td><td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Over 5 years</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-align: left">Accounts payable to suppliers</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="width: 9%; text-align: right">529,348</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">529,348</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Derivative financial instruments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,555</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16,754</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">32,309</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Long-term debt</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">137,163</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">484,903</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">49,393</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">671,459</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; text-align: right">682,066</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">501,657</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">49,393</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,233,116</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">As of December 31, 2018</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Less than 1 year</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Over 1 year and</b></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>less than 5 years</b></font></p></td><td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Over 5 years</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-align: justify">Accounts payable to suppliers</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="width: 9%; text-align: right">445,241</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">445,241</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Derivative financial instruments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8,509</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8,120</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16,629</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1.5pt">Long-term debt</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">78,750</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">536,073</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">25,208</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">640,031</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; text-align: right">532,500</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">544,193</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">25,208</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,101,901</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Capital
risk management</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group manages its capital to ensure it will be able to continue as a going concern, while it maximizes returns for its shareholders
through the optimization of its capital structure. The Group's management reviews the capital structure when presenting
its financial projections to the Board of Directors and stockholders as part of the annual business plan. When performing its
review, the Board of Directors considers the cost of equity and its associated risks.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
capital structure of the Group consists of net debt (borrowings disclosed in Note 15 after deducting cash and bank balances) and
net parent investment of the Group (comprising issued capital, other comprehensive income and retained earnings).</font></p>
5867000
536000
272805000
199312000
677713000
653479000
529348000
445241000
32309000
32309000
2000
16629000
16629000
2000
1239370000
32309000
1115349000
16629000
1789726000
1457598000
1331000
1294000
1515244000
1377334000
16095000
12075000
472142000
299267000
207674000
-14764000
-10781000
27823000
18.8452
19.6566
656459000
650000000
260500000
350000000
916959000
1000000000
15555000
16754000
32309000
8509000
8120000
16629000
137163000
484903000
49393000
671459000
78750000
536073000
25208000
640031000
682066000
501657000
49393000
1233116000
532500000
544193000
25208000
1101901000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold">As of December 31, 2019</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Receivables, Payables, and Loans</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Fair value through profit or loss</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Fair value hierarchy level</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td>Financial assets -</td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 10pt; width: 64%; text-align: left">Trade receivables</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="width: 9%; text-align: right">266,938</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"></td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Other receivables</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,867</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right">       </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0pt; padding-bottom: 1.5pt">Total</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">272,805</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0pt; text-align: left">Financial liabilities -</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 10pt">Debt</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">677,713</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt; text-align: left">Accounts payable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">529,348</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Derivative financial instruments</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">32,309</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">32,309</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right">2</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Total</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,239,370</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">32,309</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">As of December 31, 2018</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Receivables, Payables, and Loans</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Fair value through profit or loss</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Fair value hierarchy level</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td>Financial assets -</td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 10pt; width: 64%; text-align: left">Trade receivables</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="width: 9%; text-align: right">198,776</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Other receivables</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">536</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right">      </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Total</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">199,312</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Financial liabilities -</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 10pt">Debt</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">653,479</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt; text-align: left">Accounts payable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">445,241</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Derivative financial instruments</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">16,629</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">16,629</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right">2</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Total</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,115,349</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">16,629</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Assets</td><td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">US$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,331</font></td><td> </td><td> </td>
<td colspan="2" style="text-align: right">1,294</td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 76%; padding-bottom: 1.5pt">Liabilities</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">(16,095</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">(12,075</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Net position</td><td> </td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">US$</font></td><td style="text-align: right">(14,764</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(10,781</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Closing exchange rate of the year</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">18.8452</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">19.6566</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 88%; text-align: justify; padding-bottom: 1.5pt"> </td><td style="width: 1%; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; font-weight: bold; text-align: center">2019</td><td style="width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Profit</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; text-align: right">27,823</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">Bank credit lines</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: justify">Amount used</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="width: 9%; text-align: right">656,459</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">650,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1.5pt">Amount not used</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">260,500</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">350,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1.5pt">Total credit lines</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; text-align: right">916,959</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,000,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold">As of December 31, 2019</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Less than 1 year</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Over 1 year and</b></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>less than 5 years</b></font></p></td><td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Over 5 years</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-align: left">Accounts payable to suppliers</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="width: 9%; text-align: right">529,348</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">529,348</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Derivative financial instruments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,555</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16,754</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">32,309</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Long-term debt</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">137,163</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">484,903</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">49,393</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">671,459</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; text-align: right">682,066</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">501,657</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">49,393</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,233,116</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">As of December 31, 2018</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Less than 1 year</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Over 1 year and</b></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>less than 5 years</b></font></p></td><td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Over 5 years</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-align: justify">Accounts payable to suppliers</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="width: 9%; text-align: right">445,241</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">445,241</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Derivative financial instruments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8,509</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8,120</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16,629</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1.5pt">Long-term debt</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">78,750</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">536,073</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">25,208</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">640,031</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; text-align: right">532,500</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">544,193</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">25,208</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,101,901</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 21.3pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>December
31, 2019</u></b></font></p>
<p style="margin: 0"> </p>
<p style="margin: 0"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif">Instrument</font></td>
<td style="font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Notional<br />
amount in <br /> thousands</font></td><td style="padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-size: 11pt; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Fair
<br /> Value</font></td><td style="padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Contract
<br /> date</font></td><td style="font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Maturity
<br /> date</font></td><td style="font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Rate
received</font></td><td style="font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Rate
<br /> paid</font></td><td style="padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 25%; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif">Liabilities:</font></td>
<td style="width: 1%; font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; font-size: 11pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 9%; font-size: 11pt; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 1%; font-size: 11pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 1%; font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; font-size: 11pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 9%; font-size: 11pt; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 1%; font-size: 11pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 1%; font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 11%; font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 1%; font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 11%; font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 1%; font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 14%; font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 1%; font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; font-size: 11pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 9%; font-size: 11pt; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 1%; font-size: 11pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">Interest rate swap</font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">Ps.</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">50,000</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">Ps.</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">19,614</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font-family: Times New Roman, Times, Serif">11/15/2018</font></td><td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font-family: Times New Roman, Times, Serif">12/15/2023</font></td><td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font-family: Times New Roman, Times, Serif">TIIE 28 days (1)</font></td><td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">8.33</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">%</font></td></tr>
</table>
<p style="margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">Average
<br /> Strike <br /> Ps./US$</font></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">Maturity
date</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; width: 33%; text-align: left; padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Forwards
US Dollar-Mexican Peso</font></td>
<td style="width: 1%"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">US$</font></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">47,690</font></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">12,695</font></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; width: 9%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">19.61</font></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 30%; text-align: center; padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Weekly,
through October 2020</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">Total
Liabilities</font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: bold 10pt Times New Roman, Times, Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">32,309</font></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Non-current
liability</font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">16,754</font></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Total
current liability</font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">15,555</font></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">(1)
As of December 31, 2019, the 28-day TIIE rate was 7.55%.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 21.3pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>December
31, 2018</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 21.3pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif">Instrument</font></td><td style="padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font-family: Times New Roman, Times, Serif"><b>Notional</b></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font-family: Times New Roman, Times, Serif"><b>amount
in<br /> thousands</b></font></p></td><td style="padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Fair
<br /> Value</font></td><td style="padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Contract
<br /> date</font></td><td style="font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Maturity
<br /> date</font></td><td style="font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Rate
<br /> received</font></td><td style="font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Rate
<br /> paid</font></td><td style="padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; padding-left: 0in"><font style="font-family: Times New Roman, Times, Serif">Liabilities:</font></td><td style="font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 11pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-size: 11pt; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-size: 11pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 11pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-size: 11pt; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-size: 11pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 11pt; text-align: center; padding-left: 3.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 11pt; text-align: center; padding-left: 3.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 11pt; text-align: center; padding-left: 3.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 11pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-size: 11pt; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-size: 11pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 25%; text-align: left; text-indent: 0; padding-left: 0"><font style="font-family: Times New Roman, Times, Serif">Interest
rate swap</font></td><td style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif">Ps.</font></td><td style="width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">50,000</font></td><td style="width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif">8,364</font></td><td style="width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 11%; text-align: center; padding-left: 3.5pt"><font style="font-family: Times New Roman, Times, Serif">15/11/2018</font></td><td style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 11%; text-align: center; padding-left: 3.5pt"><font style="font-family: Times New Roman, Times, Serif">15/12/2023</font></td><td style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 14%; text-align: center; padding-left: 3.5pt"><font style="font-family: Times New Roman, Times, Serif">TIIE
28 days (1)</font></td><td style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif">8.33</font></td><td style="width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif">%</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td colspan="2" style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Average <br />
Strike <br />
Ps./US$</b></font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Maturity date</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 33%"><font style="font: 10pt Times New Roman, Times, Serif">Forwards US Dollar-Mexican Peso</font></td>
<td style="width: 1%"> </td>
<td style="border-bottom: black 1.5pt solid; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">US$</font></td>
<td style="border-bottom: black 1.5pt solid; width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">24,414</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="border-bottom: black 1.5pt solid; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td>
<td style="border-bottom: black 1.5pt solid; width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">8,265</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">20.06</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 30%; padding-left: 3.5pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Weekly, through June 2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="padding-left: 3.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Total Liabilities</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Ps.</b></font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>16,629</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="padding-left: 3.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="padding-left: 3.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Non-current liability</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b>Ps.</b></font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>8,120</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="padding-left: 3.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="padding-left: 3.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Total current liability</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b>Ps.</b></font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>8,509</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="padding-left: 3.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">(1)
As of December 31, 2018, the 28-day TIIE rate was 8.5956%.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: left">Instrument</td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Notional amount in thousands of</td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">2020</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">2021</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">2022</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">2023</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">2024 and thereafter</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 30%; font-weight: bold">Liabilities:</td><td style="width: 1%"> </td>
<td style="width: 9%"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 10pt; text-align: left">Interest rate swap</td><td> </td>
<td style="text-align: center">Ps.</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,458</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,833</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,833</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,833</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">31,043</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 10pt; text-align: left">Forwards US Dollar-Mexican Peso</td><td> </td>
<td style="text-align: center">US$</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">12,695</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: center"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">2019</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">2018</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">2017</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"><b>Net income (in thousands
of pesos)</b></font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Times New Roman, Times, Serif; width: 64%; text-align: left"><p style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">Attributable to shareholders</font></p></td><td style="font-family: Times New Roman, Times, Serif; width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif">472,218</font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif">299,267</font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif">207,674</font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"><b>Shares (in thousands
of shares)</b></font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 2.85pt"></p><p style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">Weighted
average of outstanding shares</font></p></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">30,200</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">30,200</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">30,200</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">Basic and diluted earnings per share (pesos per share)</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">15.63</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">9.91</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">6.88</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr></table>
50000000
50000000
47690000
24414000
1458000
5833000
5833000
5833000
31043000
12695000
19614000
8364000
12695000
8265000
12/15/2023
12/15/2023
Weekly, through October 2020
Weekly, through June 2019
0.0833
0.0833
19.61
20.06
32309000
16629000
16754000
8120000
15555000
8509000
0.0755
0.085956
-15680000
-16629000
As a result of the transaction between Betterware and DD3 and the subscription and payment of 2,040,000 Betterware's shares in Nasdaq, which closed on March 13, 2020.
As of the closing date, BLSM is now a wholly-owned subsidiary of Betterware, who will begin to prepare consolidated financial statements as of such date. Betterware's original shareholders maintained an ownership of 87.7% of the total outstanding shares, DD3's shareholders obtained a 6.4% ownership interest and investors under the Nasdaq listing a 5.9% ownership interest. After the closing date, Betterware has 34,451,020 shares issued and outstanding.
87.7% of the total outstanding shares of 34,451,020, which is equal to 30,199,945 shares without giving effect to the DD3 shareholders' capital contribution and the proceeds from the Nasdaq listing. The effects of the DD3 transaction, including the related share issuance that resulted in DD3's shareholders obtaining a 6.4% ownership interest and the capital contribution of US$7,519 (Ps. 181,734)
2018-11-15
2018-11-15
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif"><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif">24.</font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Revenue
and operating expenses</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Revenue
– </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Revenue
recognized during 2019, 2018 and 2017 is generated in Mexico. A disaggregation per home product is as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left">Kitchen and food preservation</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="width: 9%; text-align: right">1,229,148</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">820,995</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">484,044</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Home solutions</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">529,551</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">360,595</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">223,383</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Bathroom</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">441,093</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">376,262</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">250,741</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Laundry & Cleaning</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">318,782</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">308,359</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">186,708</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Tech & mobility</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">290,366</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">196,439</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">105,957</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt">Bedroom</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">275,722</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">254,066</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">198,872</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,084,662</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,316,716</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,449,705</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif">Contract
balances</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
of December 31, 2019 and 2018, the Group did not identify significant costs to obtain/fulfill a contract that are required to
be capitalized as an asset. Consequently, the Group did not perform any analysis in order to identify possible impairment losses.
See Note 6 about the expected credit loss model applicable to all financial assets measured at amortized cost.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Operating
expenses – </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif">Operating
expenses by nature, for the years ended December 31, 2019, 2018 and 2017 are as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left">Cost of personnel services and other employee benefits</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="width: 9%; text-align: right">423,956</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">332,878</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">227,597</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Sales catalog</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">128,687</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">92,931</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">66,562</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Distribution costs</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">121,155</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">102,397</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">63,283</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Packing materials</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">58,361</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">46,976</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">27,258</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Depreciation and amortization</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">38,394</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">25,960</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">24,209</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Events, marketing and advertising</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">37,848</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">35,253</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">21,513</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Promotions for the sales force</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">26,311</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">24,492</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,417</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Impairment loss on trade accounts receivables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">22,512</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">18,699</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16,243</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Travel expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">18,835</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">17,254</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">14,974</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Rent expense, operating leases</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">17,663</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">20,269</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">11,794</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Bank fees</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,436</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30,934</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">24,174</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Commissions and professional fees</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13,577</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8,335</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8,444</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Other</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">68,853</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">50,122</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">52,270</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; text-align: right">991,588</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">806,500</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">560,738</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left">Kitchen and food preservation</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="width: 9%; text-align: right">1,229,148</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">820,995</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">484,044</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Home solutions</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">529,551</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">360,595</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">223,383</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Bathroom</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">441,093</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">376,262</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">250,741</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Laundry & Cleaning</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">318,782</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">308,359</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">186,708</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Tech & mobility</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">290,366</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">196,439</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">105,957</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt">Bedroom</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">275,722</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">254,066</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">198,872</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,084,662</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,316,716</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,449,705</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left">Cost of personnel services and other employee benefits</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="width: 9%; text-align: right">423,956</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">332,878</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">227,597</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Sales catalog</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">128,687</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">92,931</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">66,562</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Distribution costs</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">121,155</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">102,397</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">63,283</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Packing materials</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">58,361</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">46,976</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">27,258</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Depreciation and amortization</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">38,394</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">25,960</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">24,209</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Events, marketing and advertising</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">37,848</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">35,253</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">21,513</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Promotions for the sales force</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">26,311</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">24,492</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,417</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Impairment loss on trade accounts receivables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">22,512</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">18,699</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16,243</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Travel expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">18,835</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">17,254</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">14,974</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Rent expense, operating leases</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">17,663</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">20,269</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">11,794</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Bank fees</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,436</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30,934</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">24,174</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Commissions and professional fees</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13,577</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8,335</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8,444</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Other</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">68,853</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">50,122</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">52,270</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; text-align: right">991,588</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">806,500</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">560,738</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
97921000
20000
87317000
174801000
87484000
15000
20000
150000000
128000000
79080000
111000000
110000000
91583000
78151000
46696000
65545000
45045000
64955000
10370000
8571000
The Mexican General Corporate Law requires that at least 5% of net income of the year be transferred to the legal reserve until the reserve equals 20% of common stock at par value (historical pesos).
679188000
The Group is mainly exposed to variations in the Mexican Peso / the U.S. Dollar exchange rate. For sensitivity analysis purposes, the Group has determined a 10 percent increase and decrease in Ps. currency units against the U.S. dollar ("relevant currency"). 10 percent is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated financial assets/liabilities and adjusts their translation at the year-end for a 10 percent change in foreign currency rates. A positive number below indicates an increase in profit where currency units strengthen 10 percent against the relevant currency. For a 10 percent weakening of currency units against the relevant currency, there would be a comparable impact on the profit, and the balances below would be negative.
1352000
0.10
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif"><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>23.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Related
parties balances and transactions</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Balances
and transactions between Betterware and BLSM, which are related parties, have been eliminated on combination and are not disclosed
in this note. Details of transactions between the Group and other related parties are disclosed below.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Key
management personnel compensation comprised short-term employee benefits by Ps. 34,540 and Ps. 34,500 as of December 31, 2019
and 2018, respectively. Compensation of the Group's key management personnel includes salaries and non-cash benefits. No
long-term employee benefits were paid to key management personnel during 2019 and 2018. Additionally, the Group does not have
any share-based payment scheme for employees.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-indent: 0.05pt"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Transactions</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">During
2017, the Group entered into the following transactions with related parties that are not members of the Group:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">2017</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"><b>Interest income</b></font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Times New Roman, Times, Serif; width: 88%; text-align: left"><p style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif">Strevo
Holding, S.A. de C.V.(i)</font></p></td><td style="font-family: Times New Roman, Times, Serif; width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif">18,650</font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif">Betterware Controladora,
S.A. de C.V.(i)</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">316</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif">Total</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">18,966</font></td><td style="padding-bottom: 1.5pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">(i)
Merged with the Group on July 28, 2017</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
following balances were outstanding as of December 31, 2019 and 2018:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left">Trade accounts receivable from related parties</td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 1.5pt">Fundación Betterware., A.C.</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">610</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">.-</font></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; text-align: right">610</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">2017</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"><b>Interest income</b></font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Times New Roman, Times, Serif; width: 88%; text-align: left"><p style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif">Strevo
Holding, S.A. de C.V.(i)</font></p></td><td style="font-family: Times New Roman, Times, Serif; width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif">18,650</font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif">Betterware Controladora,
S.A. de C.V.(i)</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">316</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif">Total</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">18,966</font></td><td style="padding-bottom: 1.5pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">(i)
Merged with the Group on July 28, 2017</font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left">Trade accounts receivable from related parties</td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 1.5pt">Fundación Betterware., A.C.</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">610</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">.-</font></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; text-align: right">610</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
7028000
6707000
20754000
-610000
22000
135000
610000
34540000
34500000
991588000
20269000
560738000
423956000
128687000
121155000
58361000
38394000
37848000
26311000
22512000
18835000
17663000
15436000
13577000
68853000
332878000
92931000
102397000
46976000
25960000
35253000
24492000
18699000
17254000
30934000
8335000
50122000
806500000
227597000
66562000
63283000
27258000
24209000
21513000
2417000
16243000
14974000
11794000
24174000
8444000
52270000
3084662000
2316716000
1449705000
1229148000
820995000
484044000
529551000
360595000
223383000
441093000
376262000
250741000
318782000
308359000
186708000
290366000
196439000
105957000
275722000
254066000
198872000
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif"><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>25.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Segment
information</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Information
reported to the Chief Operating Decision Maker ("CODM"), for the purposes of resource allocation and assessment of
business performance, focuses on the Group as a whole and with main strategies on a company-wide basis. As discussed in Note 1,
the Group is focused on the home organization segment whose product portfolio includes home organization, kitchen preparation,
food containers, and practical furniture, among other categories (see Note 24). The Group's products are offered through
9 catalogs in Mexico over the year. As such, no reporting on segment information is deemed necessary to assess the Group performance
given its business model and current operations.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
addition to the above, the Group obtains all its revenue from the Mexican market, therefore no geographic information is disclosed.
Also, the Group considers that there are no major customers, and therefore, no concentration risks exist given the nature of the
business and the sale of its products through a significant number of distributors.</font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif"><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>26.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Commitments</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Lease
arrangements</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group leases warehouses and an administrative office space that expire on December 31, 2020. Leases will not be renewed because
the Group will move to the new distribution center when its construction is finalized (see Note 1). Rental expense for the years
ended December 31, 2019, 2018 and 2017 was Ps. 11,605, Ps. 14,169 and Ps. 11,794, respectively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Borrowings
</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
secured line of credit with Banamex, for up to Ps. 400,000 (Note 15) has a lien for the land acquired to build the Group's
new corporate headquarters and distribution center (Note 10).</font></p>
14010000
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif"><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>29.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Authorization
to issue the combined financial statements</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
May 4, 2020, the issuance of the Group's combined financial statements was authorized by Andrés Campos, Chief Executive
Officer, and Gustavo Rodarte de la Serna, Chief Financial Officer.</font></p>
5000
5000
5000
5000
5000
5000
5032939
5032939
4786193
3654378
3654378
3475150
4791193
5037939
5037939
3480150
3659378
3659378
348441000
348441000
348441000
22767000
498445000
22767000
2040
16500000
581000000
16513000
60144000
76657000
13640000
9340000
4333000
-22515000
-18699000
18215000
13692000
679188000
The loans with financial institutions referred to above contain restrictive covenants, which require the Group (i) to continue to perform the same type of activities and businesses, maintaining their legal existence, (ii) complying with all applicable laws, (ii) having its combined financial statements audited by internationally recognized auditors authorized by the financial institution, (iii) paying all applicable taxes, (iv) obtaining all licenses and permits required by government to operate, (v) keeping assets and businesses insured against loss or damage, (vi) not to obtain additional loans exceeding Ps. 100,000 or 60% of earnings before interest, taxes, depreciation and amortization (EBITDA) of the immediately preceding year, (vii) not to incur liens on the Group's assets, (viii) not to give or sell any rights of financial documents and (ix) not to pay dividends in an amount greater than Ps. 200,000; except in 2019 when it was permited to pay up to Ps. 350,000. It is important to mention that additional debt may be obtained, or dividends may be paid in amounts greater than those stipulated in the contract if prior consent from such financial institution is obtained.
The line of credit agreement with MCRF P, S.A. de C.V. SOFOM, E.N.R. contains the following financial covenants: a) To maintain a leverage ratio equal to or lower than 3.0 during 2018; and 2.5 from January 1, 2019, until the contract expiration date. b) To maintain a coverage interest ratio equal to or greater than 2.5 during all term of the contract. c) Not to maintain the equity book value lower than Ps. 100,000. d) To maintain a minimum cash and cash equivalents balance of Ps. 40,000 The line of credit agreement with Banamex contains the following financial covenants: a) To maintain a short-term debt coverage ratio not lower than 1.5. b) To maintain a total debt coverage ratio not greater than 3.0. c) To maintain a leverage ratio not greater than 7.0. d) To maintain a minimum cash and cash equivalents balance of Ps. 40,000
600000000
400000000
80000000
1800000
0.1310
1630000
1355000
1283000
424000
441000
123000
92000
547000
533000
-102000
-165000
-26000
-71000
196000
225000
-127000
-93000
115000
103000
55985000
55985000
218376000
24234000
121000
45000
274482000
80264000
70000000
42739000
The Group renegotiated the interest rate of the secured line of credit with Banamex, which changed from TIIE rate plus 317 basis points to TIIE rate plus 260 basis points. In addition, withdrawals from this line of credit were extended to August 2020, and are payable on a quarterly basis from September 2020 up to December 18, 2025.
2040000
Betterware's original shareholders maintained an ownership of 87.7% of the total outstanding shares, DD3's shareholders obtained a 6.4% ownership interest and investors under the Nasdaq listing a 5.9% ownership interest.
34451020
34451020
74000000
100000000
258750000
472218000
299267000
207674000
30200
30200
30200
15.63
9.91
6.88
610000
880706000
729850000
5082000
909020000
727748000
529348000
445241000
54456000
36706000
34709000
29016000
30299000
17624000
64955000
5006000
2716000
14226000
15555000
8509000
878358000
734444000
1630000
1355000
16754000
8120000
78501000
70627000
10358000
529643000
562788000
636886000
642890000
274482000
80264000
178777000
58702000
1789726000
1457598000
3084662000
2316716000
1449705000
1280829000
958469000
558105000
1803833000
1358247000
891600000
319133000
249148000
204555000
551300000
454016000
291834000
121155000
103336000
64349000
991588000
806500000
560738000
812245000
551747000
330862000
85429000
86343000
118205000
15680000
16629000
-13330000
-6036000
71214000
-107411000
-102301000
-26237000
76000
165000
-115000
472218000
299432000
207559000
87484000
97866000
278000000
300079000
232692000
150179000
96952000
38394000
25962000
24209000
7028000
6707000
20754000
11970000
-1807000
-57626000
-15680000
-16629000
837309000
559703000
370467000
-48311000
-50843000
-28761000
-43348000
-160312000
-34807000
-40263000
-31329000
-9345000
101857000
238927000
80112000
7703000
-3496000
-1094000
12675000
-2909000
4490000
2290000
1470000
-282000
351000
308000
184000
-224207000
-213327000
-8411000
605446000
338214000
372688000
182625000
21268000
33668000
28110000
368000
7028000
6707000
1788000
-175597000
13549000
-31512000
104500000
50000000
589798000
83041000
35085000
743787000
82654000
85159000
142431000
22940000
-2001000
-20087000
12325000
342955000
235124000
97866000
-393535000
-405235000
-316507000
36314000
-53472000
24669000
5037939
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"><b>11.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Goodwill</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 1,<br />
2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Disposals</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31, <br />
2018</b></font></p></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 40%; text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: justify; padding-left: 5.4pt"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; padding-left: 2.85pt">Cost</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">348,441</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">348,441</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,<br />
2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Disposals</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,<br />
2019</b></font></p></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 40%; text-align: justify; text-indent: -5.4pt; padding-left: 5.4pt"> </td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: justify; padding-left: 5.4pt"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; padding-left: 0in">Cost</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">348,441</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">348,441</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Goodwill
corresponds to the excess resulted between the consideration paid and the fair values of the net assets acquired at the date of
acquisition paid by BLHM and Strevo as mentioned in Note 2o. Goodwill was generated by different legal entities and transmitted
to the Group through the mergers carried out on November 30, 2002 and July 28, 2017, respectively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
the purposes of impairment testing, goodwill has been allocated to one CGU. The recoverable amount of the CGU was based on fair
value less costs of disposal, estimated using discounted cash flows. The fair value measurement was categorized as a Level 3 fair
value based on the inputs in the valuation technique used.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
values assigned to the key assumptions represent management´s assessment of future trends in the relevant industries and
have been based on historical data from both external and internal sources.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">At
December 31, 2019 and 2018, the estimated recoverable amount of the CGU exceeded its carrying amount.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
key assumptions used in the estimation of the recoverable amount are set out below. The values assigned to the key assumptions
represent management’s assessment of future trends in the relevant industries and have been based on historical data from
both internal and external sources.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; text-align: justify">In percent</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: justify">Discount rate</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">12.4</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">15.7</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">Terminal Value Growth Rate</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.0</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.0</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify">Budgeted EBITDA Growth Rate</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">14.0</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">14.8</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
discount rate was a post-tax measurement estimated based on the historical industry average, weighted-average cost of capital
and a market interest rate of 7.2% as of December 31, 2019.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
cash flow projections included specific estimates for 5 years and a terminal growth rate thereafter. The terminal growth rate
was determined based on management’s estimate of the long-term compound annual EBITDA growth rate, consistent with the assumptions
that a market participant would make.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Budgeted
EBITDA was estimated taking into account past experience and a revenue growth rate projected taking into account the average growth
levels experienced over the past 5 years and the estimated sales volume and price growth for the next five years. It was assumed
that the sales price would increase in line with forecast inflation over the next five years.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b></b></font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 0; text-indent: 0"></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>27.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Contingencies</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group is a party to various legal actions in the normal course of its business. The Group is not involved in or threatened by
proceedings for which the Group believes it is not adequately insured or indemnified or which, if determined adversely, would
have a material adverse effect on its combined financial position, results of operations and cash flows.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Additional
taxes payable could arise in transactions with related parties if the tax authority, during a review, believes that prices and
amounts used by the Group are not similar to those used with or between independent parties in comparable transactions.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
accordance with the current tax legislation, the authorities have the power to review up to five fiscal years prior to the last
income tax return filed.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
August 12, 2014, the International Inspection Administration “4” (“AFI” for its acronym in Spanish), under
the Central Administration of International Control, in relation to the General Administration of Large Taxpayers of the Tax Administration
Service (“SAT” for its acronym in Spanish), requested information regarding the Group’s 2010 income tax filing,
which was provided at that time. On February 20, 2017, the final agreement was signed with the Taxpayer Advocacy Office (“PRODECON”)
regarding the SAT’s review. On March 2, 2017, the SAT notified the Group about certain issues on which an agreement was
not reached. As a result, the Group filed a lawsuit for annulment before the SAT’s resolution, which is in progress as of
the date of issuance of these combined financial statements. Based on the evaluation of the Group’s Management, tax liabilities
are not expected to arise as a result of this matter. The maximum exposure of the contingent liability on this matter was estimated
to amount Ps. 14,010.</font></p>
22393000
1280829000
958469000
558105000
14273000
7084000
6214000
P5Y
2023-04-30
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 0; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>2.</b></font></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Significant
accounting policies</b></font></td></tr>
</table>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 53.45pt; text-indent: 0in"> </p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 25.1pt"><font style="font: normal 10pt Times New Roman, Times, Serif">a.</font></td><td style="font: 10pt Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Basis
of preparation</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
combined financial statements include the financial statements of Betterware and BLSM (the “combined financial statements”).
The Group prepares combined financial statements for the above-referred companies because it provides more meaningful information
to the reader as both entities are complementary to the same operation, they are under common control and operate under common
management. These combined financial statements were prepared for purposes of including them in the filing to the US Securities
and Exchange Commission as a result of the merger transaction of 2020 described in Note 1.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Transactions
among the combined companies and the balances and unrealized gains or losses arising from intra-group transactions have been eliminated
in the preparation of the combined financial statements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">b.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Basis
of accounting</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
combined financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”)
as issued by the International Accounting Standards Board.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">c.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Basis
of measurement</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
combined financial statements have been prepared on the historical cost basis except for certain financial instruments measured
at fair value.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Functional
and presentation currency</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">These
combined financial statements are presented in Mexican pesos (“Ps.”), which is the Group’s functional currency.
All financial information presented in Mexican pesos has been rounded to the nearest thousand (except where specified differently).
When referring to U.S. dollars (“US$”), it is thousands of dollars of the United States of America.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Combined
statement of profit or loss and other comprehensive income</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group opted to present a single combined statement of profit or loss and comprehensive income, combining the presentation of profit
and loss, including an operating profit line item, and comprehensive income in the same statement. Due to the commercial activities
of the Group, costs and expenses presented in the combined statements of profit or loss and other comprehensive income were classified
according to their function. Accordingly, cost of sales and operating expenses were presented separately.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">d.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Cash
and cash equivalents and restricted cash</i></b></font></td></tr></table>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: left; text-indent: 0in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Cash
and cash equivalents consist mainly of bank deposits and short-term investments in securities, highly liquid and easily convertible
into cash in a period no longer than three months. Cash is stated at nominal value and cash equivalents are valued at fair value. 
Any cash or cash equivalent that cannot be disposed of in less than three months is classified as restricted cash.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
of December 31 2018, restricted cash was classified within other non-current assets, which equaled one quarter of the interest
accrued under the long term credit with MCRFP, S.A. de C.V. SOFOM, E.N.R. As of December 31, 2019, the Group does not maintain
restricted cash (see Note 5) as the restriction was lifted during the year.</font></p>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: 0in"> </p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">e.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Financial
instruments</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Financial
assets and financial liabilities are recognized in the Group’s combined statement of financial position when the Group becomes
a party to the contractual provisions of the instrument.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Financial
assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair
value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as
appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial
liabilities at fair value through profit or loss are recognized immediately in profit or loss.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">f.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Financial
assets</i></b></font></td></tr></table>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: 0in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">All
recognized financial assets are measured subsequently in their entirety at either amortized cost or fair value, depending on the
classification of the financial assets.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 21.25pt; text-indent: 35.45pt"><font style="font: 10pt Times New Roman, Times, Serif"><i>Classification
of financial assets </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Debt
instruments that meet the following conditions are measured subsequently at amortized cost:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 60pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 18pt"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">the
financial asset is held within a business model whose objective is to hold financial
assets in order to collect contractual cash flows; and</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 60pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 18pt"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">the
contractual terms of the financial asset give rise on specified dates to cash flows that
are solely payments of principal and interest (“SPPI”) on the principal amount
outstanding.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 78pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Debt
instruments that meet the following conditions are measured subsequently at fair value through other comprehensive income (FVTOCI):</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 60pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 18pt"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">the
financial asset is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling the financial assets; and</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 60pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 18pt"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">the
contractual terms of the financial asset give rise on specified dates to cash flows that
are SPPI on the principal amount outstanding.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 78pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">By
default, all other financial assets are measured subsequently at fair value through profit or loss (FVTPL).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Despite
the foregoing, the Group may make the following irrevocable election/designation at initial recognition of a financial asset:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 60pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 18pt"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">the
Group may irrevocably elect to present subsequent changes in fair value of an equity
investment in other comprehensive income if certain criteria are met; and</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 60pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 18pt"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">the
Group may irrevocably designate a debt investment that meets the amortized cost or FVTOCI
criteria as measured at FVTPL if doing so eliminates or significantly reduces an accounting
mismatch.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 78pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Amortized
cost and effective interest method</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest income
over the relevant period.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
amortized cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal
repayments, plus the cumulative amortization using the effective interest method of any difference between that initial amount
and the maturity amount, adjusted for any loss allowance. The gross carrying amount of a financial asset is the amortized cost
of a financial asset before adjusting for any loss allowance.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Foreign
exchange gains and losses</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
carrying amount of financial assets that are denominated in a foreign currency is determined in that foreign currency and translated
at the spot rate at the end of each reporting period. Specifically, for financial assets measured at amortized cost that are not
part of a designated hedging relationship, exchange differences are recognized in profit or loss.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Impairment
of financial assets</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group always recognizes lifetime expected credit losses (“ECL”) for trade receivables. The expected credit losses
on these financial assets are estimated using the simplified approach by using a provision matrix, estimated based on historical
credit loss experience based on the past due status of the debtors, adjusted as appropriate to reflect current conditions and
estimates of future economic conditions.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
all other financial instruments, the Group recognizes lifetime ECL when there has been a significant increase in credit risk since
initial recognition. However, if the credit risk on the financial instrument has not increased significantly since initial recognition,
the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECL.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Lifetime
ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial
instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on
a financial instrument that are possible within 12 months after the reporting date.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Write-off
policy</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group writes off a financial asset when there is information indicating that the debtor is in severe financial difficulty and
there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy
proceedings, or in the case of trade receivables, when the amounts are over one year past due, whichever occurs sooner. Financial
assets written off may still be subject to enforcement activities under the Group’s recovery procedures, taking into account
legal advice where appropriate. Any recoveries made are recognized in profit or loss.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 25.1pt"><font style="font: normal 10pt Times New Roman, Times, Serif">g.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Financial
liabilities</i></b></font></td></tr></table>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: 0in"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">All
financial liabilities are measured subsequently at amortized cost using the effective interest method or at FVTPL.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Financial
liabilities at FVTPL are measured at fair value, with any gains or losses arising on changes in fair value recognized in profit
or loss to the extent that they are not part of a designated hedging relationship.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Financial
liabilities and equity</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Classification
as debt or equity </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Debt
and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual
arrangements and the definitions of a financial liability and an equity instrument.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Financial
liabilities measured subsequently at amortized cost </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Financial
liabilities that are not (i) contingent consideration of an acquirer in a business combination, (ii) held-for-trading, or (iii)
designated as at FVTPL, are measured subsequently at amortized cost using the effective interest method.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense
over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including
all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums
or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortized
cost of a financial liability.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Foreign
exchange gains and losses</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
financial liabilities that are denominated in a foreign currency and are measured at amortized cost at the end of each reporting
period, the foreign exchange gains and losses are determined based on the amortized cost of the instruments. These foreign exchange
gains and losses are recognized in the ‘Foreign exchange (loss) gain, net’ line item in the Combined Statements of
Profit or Loss and Other Comprehensive Income for financial liabilities that are not part of a designated hedging relationship.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency and translated at
the spot rate at the end of the reporting period. For financial liabilities that are measured as at FVTPL, the foreign exchange
component forms part of the fair value gains or losses and is recognized in profit or loss for financial liabilities that are
not part of a designated hedging relationship.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Derecognition
of financial liabilities</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group derecognizes financial liabilities when, and only when, the Group’s obligations are discharged, canceled or have expired.
The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized
in profit or loss.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">When
the Group exchanges with the existing lender one debt instrument into another one with the substantially different terms, such
exchange is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability.
Similarly, the Group accounts for substantial modification of terms of an existing liability or part of it as an extinguishment
of the original financial liability and the recognition of a new liability. It is assumed that the terms are substantially different
if the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted
using the original effective rate is at least 10 per cent different from the discounted present value of the remaining cash flows
of the original financial liability. If the modification is not substantial, the difference between (1) the carrying amount of
the liability before the modification; and (2) the present value of the cash flows after modification should be recognized in
profit or loss as the modification gain or loss within other gains and losses.</font></p>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: 0in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 25.1pt"><font style="font: normal 10pt Times New Roman, Times, Serif">h.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Derivative
financial instruments</i></b></font></td></tr></table>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: 0in"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate
risks, including foreign exchange forward contracts and interest rate swaps. Further details of derivative financial instruments
are disclosed in Note 18.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Derivatives
are recognized initially at fair value at the date a derivative contract is entered into and are subsequently remeasured to their
fair value at each reporting date. The resulting gain or loss is recognized in profit or loss immediately unless the derivative
is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on
the nature of the hedge relationship.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">A
derivative with a positive fair value is recognized as a financial asset whereas a derivative with a negative fair value is recognized
as a financial liability. Derivatives are not offset in the combined financial statements unless the Group has both legal right
and intention to offset. A derivative is presented as a non-current asset or a non-current liability if the remaining maturity
of the instrument is more than 12 months and it is not expected to be realized or settled within 12 months. Other derivatives
are presented as current assets or current liabilities.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">i.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Inventories
and cost of sales</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Inventories
are measured at the lower of cost and net realizable value. The cost of inventories is based on weighted-average. The net realizable
value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling
and distribution.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">j.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Prepaid
expenses</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Prepaid
expenses are mainly comprised of advanced payments for printed catalogs, as well as, advanced payments for the purchase of inventories
that are received after the date of the combined statement of financial position and during the normal course of business, and
they are presented in current assets in accordance with the classification of the destination item.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">k.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Other
assets</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Other
assets mainly include restricted cash (see Note 2d), inventory of rewards and rent security deposits. They are presented in current
or non-current assets in accordance with the classification of the destination item.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Under
the reward program, the Group grants reward points to its distributors for the recruitment of associates, while associates receive
such points for the referral of new associates within a catalogue. These points are exchangeable for products that Betterware
acquires from other suppliers, which are not related to a revenue contract. The points expire based on commercial terms established
by the Group that can be modified at management’s discretion. Inventory of rewards mainly consist of certain products and
items (in the form of rewards) that Betterware acquires with the purpose to encourage sales among the distributors and associates.
Such inventory is acquired once the distributors and associates redeem the reward points that are granted by the Group so that
the balance of inventory at each reporting period only relates to items already redeemed but not delivered. Inventory of rewards
are recognized at cost of acquisition.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">l.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Property,
plant and equipment, net</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Items
of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">If
significant parts of an item have different useful lives, then they are accounted for as separate items (major components).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Depreciation
is recognized using the straight-line method. The estimated useful lives and depreciation method are reviewed at the end of each
reporting period, with the effect of any changes in estimate accounted for on a prospective basis.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
following useful lives are used in the calculation of depreciation:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; width: 75%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Molds</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 25%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">5
years</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Vehicles</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">4
years</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Computers
and equipment</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">3
- 10 years</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Leasehold
improvements</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">3
years</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Property,
plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued
use of the asset. Any gain or loss arising on the disposal or retirement is determined as the difference between the sales proceeds
and the carrying amount of the asset and is recognized in profit or loss.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Borrowing
costs directly attributable to the acquisition or construction of qualifying assets (designated asset), which are assets that
necessarily take a substantial period of time before they are available for their intended use, are added to the cost of those
assets, until such time as the assets are available for their intended use. If any specific borrowing remains outstanding after
the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity borrows generally
when calculating the capitalization rate on general borrowings.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Investment
income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from
the borrowing costs eligible for capitalization. All other borrowing costs are recognized in profit or loss in the period in which
they are incurred. All other borrowing costs are recognized in profit or loss in the period in which they are incurred.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">m.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Intangible
assets</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 56.7pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"><u>Brand</u></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">This
is an intangible asset with an indefinite useful life and corresponds mainly to the value of the “Betterware” brand,
which was transmitted to the Group through a merger with Strevo Holding, S.A. de C.V. (“Strevo”, an unrelated third
party) on July 28, 2017. This intangible asset is subject to annual impairment testing, and whenever there is an indication that
the asset may be impaired.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Additionally,
the Group has incurred expenditures related to registration of trademark rights, which have a finite life. Such expenditures are
amortized on a straight-line basis over their estimated useful lives which range from 10 to 30 years.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 56.7pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"><u>Relationship
with customers</u></font></td></tr></table>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">This
is an intangible asset with a definite useful life of ten years and is being amortized on a straight line basis and corresponds
to the value of the relationships with customers. It was transmitted to the Group through a merger with Strevo on July 28, 2017.
This intangible asset is subject to impairment testing whenever there is an indication that the asset may be impaired.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 56.7pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"><u>Derecognition
of intangible assets</u></font></td></tr></table>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">An
intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or
losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the
carrying amount of the asset, are recognized in profit or loss when the asset is derecognized.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">n.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Impairment
of tangible and intangible assets other than goodwill</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">At
the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether
there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount
of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate
the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which
the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated
to individual cash-generating units, or otherwise, they are allocated to the smallest group of cash-generating units for which
a reasonable and consistent allocation basis can be identified.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Intangible
assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually,
and whenever there is an indication that the asset may be impaired.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Recoverable
amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows
are discounted to their present value using a post-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">If
the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced
to its recoverable amount. Any impairment is recognized immediately in profit or loss.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">When
an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable
amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment
loss been recognized for the asset in prior years. A reversal of an impairment loss is recognized immediately in profit or loss
unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation
increase.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">o.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Goodwill</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Goodwill
corresponds to the excess resulted between the consideration paid and the fair values of the net assets acquired at the date of
acquisition paid by Betterware Latinoamérica Holding México, S.A. de C.V. (BLHM) and Strevo. Goodwill was generated
by different legal entities and transmitted to the Group through the mergers carried out on November 30, 2002 and July 28, 2017,
respectively (Note 11).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
disclosed in Note 11, Goodwill was transferred to the Group through mergers carried out on November 30, 2002 and July 28, 2017
with BLHM and Strevo, respectively, which was generated through the acquisition of shares of the Group in November 2002 and March
2015, respectively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Goodwill
is not amortized but is tested annually for impairment. Goodwill arising from a business combination is allocated to the cash
generating unit (“CGU”) receiving a benefit from the synergies of the combination. An impairment loss is recognized
if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss.
They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts
of the other long-lived assets in the CGU on a pro rata basis. An impairment loss in respect of goodwill is not reversed.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">p.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Leases</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Classification
and valuation of leases under IAS 17, in effect through December 31, 2018</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>The
Group as lessee</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
the year ended December 31, 2018, the classification of leases as finance or operating depended on the substance of the transaction
rather than the form of the contract.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Leases
in which a significant portion of the risks and rewards relating to the leased property are retained by the lessor were classified
as operating leases. Payments made under operating leases (net of incentives received by the lessor) were recognized in the combined
statement of income based on the straight-line method over the lease period.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Leases
where the Group assumes substantially all the risks and rewards of ownership were classified as finance leases. Finance leases
were capitalized at the beginning of the lease, at the lower of the fair value of the leased property and the present value of
the future minimum lease payments. If its determination was practical, in order to discount the future minimum lease payments
to present value, the interest rate implicit in the lease was used; otherwise, the incremental borrowing rate of the lessee was
used.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
the year ended December 31, 2018, the Group had only entered into operating leases.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>The
Group as lessor</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
of and for the year ended December 31, 2018, the Group did not maintain any leases as lessor.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Classification
and valuation of leases under IFRS 16, in effect beginning January 1, 2019 (Note 3a)</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>The
Group as lessee</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group evaluates whether a contract is or contains a lease agreement at inception of a contract. A lease is defined as an agreement
or part of an agreement that conveys the right to control the use of an identified asset for a period of time in exchange for
a consideration. The Group recognizes an asset for right-of-use and the corresponding lease liability, for all lease agreements
in which it acts as lessee, except in the following cases: short-term leases (defined as leases with a lease term of less than
12 months); leases of low-value assets (defined as leases of assets with an individual market value of less than US$5,000 (five
thousand dollars)); and, lease agreements whose payments are variable (without any contractually defined fixed payment). For these
agreements, which exempt the recognition of an asset for right-of-use and a lease liability, the Group recognizes the rent payments
as an operating expense in a straight-line method over the lease period.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
right-of-use asset comprises all lease payments discounted at present value; the direct costs to obtain a lease; the advance lease
payments; and the obligations of dismantling or removal of assets. The Group depreciates the right-of-use asset over the shorter
of the lease term or the useful life of the underlying asset; therefore, when the lessee will exercise a purchase option, the
lessee shall depreciate the right-of-use asset from the commencement date to the end of the useful life of the underlying asset.
Depreciation begins on the lease commencement date.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
lease liability is initially measured at the present value of the future minimum lease payments that have not been paid at that
date, using a discount rate that reflects the cost of obtaining funds for an amount similar to the value of the lease payments,
for the acquisition of the underlying asset, in the same currency and for a similar period to the corresponding contract (incremental
borrowing rate). To determine the lease term, the Group considers the non-cancellable period, including the probability to exercise
any right to extend and/or terminate the agreement.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Subsequently,
the lease liability is measured increasing the carrying amount to reflect interest on the lease liability (using the effective
interest method) and reducing the carrying amount to reflect the lease payments made.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">When
there is a modification in future lease payments resulting from changes in an index or a rate used to determine those payments,
the Group remeasures the lease liability when the adjustment to the lease payments takes effect, without reassessing the discount
rate. However, if the modifications are related to the lease term or exercising a purchase option, the Group reassesses the discount
rate during the liability’s remeasurement. Any increase or decrease in the value of the lease liability subsequent to this
remeasurement is recognized as an adjustment to the right-of-use asset to the same extent.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Finally,
the lease liability is derecognized when the Group fulfills all lease payments. When the Group determines that it is probable
that it will exercise an early termination of the contract that leads to a cash disbursement, such disbursement is accounted as
part of the liability’s remeasurement mentioned in the previous paragraph; however, in cases in which the early termination
does not involve a cash disbursement, the Group cancels the lease liability and the corresponding right-of-use asset, recognizing
the difference immediately in the combined statement of profit or loss and other comprehensive income. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>The
Group as lessor</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
of and for the year ended December 31, 2019, the Group does not maintain any leases as lessor.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">q.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Foreign
currency</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
preparing the combined financial statements, transactions in currencies other than the Mexican Peso, which is the functional currency
of the combined entities are recognized at the exchange rates at the dates of the transactions. Monetary assets and liabilities
denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Non-monetary
items that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of transaction.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Exchange
differences on monetary items are recognized in profit or loss in the period in which they arise.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">r.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Employee
benefits</i></b></font></td></tr></table>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"><u>Retirement
benefits - Defined benefit obligations</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
Group’s defined benefit obligations cover seniority premiums which consist of a lump sum payment of 12 day’s wage
for each year worked, calculated using the most recent salary, not to exceed twice the legal minimum wage established by law.
The related liability and annual cost of such benefits are calculated with the assistance of an independent actuary on the basis
of formulas defined in the plans using the projected unit credit method at the end of each annual reporting period.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
Group’s net obligation with respect to the defined-benefit plan are calculated separately for each plan, estimating the amount
of future benefit accrued by employees in return for their services in ongoing and past periods; that benefit is discounted to
determine its present value, and the costs for the services that have not been recognized and the fair value of the plan assets
are deducted. The discount rate is the yield at the reporting date of the government bonds that have maturity dates approximate
to the maturities of the Group’s obligations which are denominated in the same currency in which benefits are expected to be paid
(Mexican pesos).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Net
interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset.
Defined benefit costs are categorized as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 56.7pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Service
cost (including current service cost, past service cost, as well as gains and losses
on curtailments and settlements);</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 56.7pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Net
interest expense or income; and</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 56.7pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Remeasurements.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Remeasurements
of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest)
and the effect of the asset ceiling (if applicable), are recognized immediately in the liability against other comprehensive income
in the period in which they occur. Remeasurement recognized in other comprehensive income is never reclassified to profit or loss.
Past service cost is recognized in profit or loss in the period in which a plan amendment or curtailment occurs, or when the Group
recognizes the related restructuring costs or termination benefits, if earlier.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><u>Short-term
and other long-term employee benefits and statutory employee profit sharing (“PTU”)</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">A
liability is recognized for benefits accruing to employees in respect of wages and salaries, annual leave and sick leave in the
period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.
Likewise, a liability is recognized for the amount expected to be paid if the Group has a present legal or constructive obligation
to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Liabilities
recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid
in exchange for the related service.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Liabilities
recognized in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows
expected to be made by the Group in respect of services provided by employees up to the reporting date.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><u>Statutory
employee profit sharing (“PTU”)</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">PTU
is recorded in the results of the year in which it is incurred and is presented in operating expenses line item in the combined
statement of profit or loss and other comprehensive income.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
a result of the 2014 Income Tax Law, as of December 31, 2019 and 2018, PTU is determined based on taxable income, according to
Section I of Article 9 of the that Law.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><u>Termination
benefits</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Termination
benefits are recognized as an expense when the Group’s commitment can be evidenced, without real possibility of reversing,
with a detailed formal plan either to terminate employment before the normal retirement date, or else, to provide benefits for
termination as a result of an offer that is made to encourage voluntary retirement. If the benefits are payable no later than
12 months after the reporting period, then they are discounted at present value.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">s.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Income
taxes</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Income
tax expense represents the sum of the tax currently payable and deferred tax.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 56.7pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"><u>Current
tax</u></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Current
income tax (“ISR”) is recognized in the results of the year in which is incurred.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in profit or
loss because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items
that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been
enacted or substantively enacted by the end of the reporting period.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">A
provision is recognized for those matters for which the tax determination is uncertain but it is considered probable that there
will be a future outflow of funds to a tax authority. The provisions are measured at the best estimate of the amount expected
to become payable. The assessment is based on the judgment of tax professionals within the Group supported by previous experience
in respect of such activities.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 56.7pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"><u>Deferred
income tax</u></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Deferred
tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the combined financial statements
and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for
all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the
extent that it is probable that taxable profits will be available against which those deductible temporary differences can be
utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition
(other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor
the accounting profit. In addition, deferred tax liabilities are not recognized if the temporary difference arises from the initial
recognition of goodwill.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no
longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Deferred
tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled
or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting
date.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the
Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 56.7pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 18pt"><font style="font: normal 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"><u>Current
and deferred tax for the year</u></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Current
and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive
income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or
directly in equity respectively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">t.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Provisions
</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Provisions
are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that
the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Provisions
mainly include incentives granted to distributors and associates in the form of reward points, discounts and others such as compensations
to employees (bonuses) not paid at the reporting date, professional services fees, among others.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end
of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured
using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows
(when the effect of the time value of money is material).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">When
some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable
is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can
be measured reliably.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Warranties</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">When
the Group grants assurance-type warranties in contracts with customers, those rights to the customer are recognized in profit
or loss in the cost of sales line item against a provision in the statement of financial position; however, when the Group provides
its customers with service-type warranties, those are treated under the revenue recognition model as a performance obligation.
For the years ended December 31, 2019 and 2018, the Group has not granted any service-type warranties to its customers.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Reward
Points</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Through
its loyalty program (see note 2u), the Group also grants reward points to its distributors for the recruitment of associates,
while associates receive such points for the referral of new associates within a catalogue. The loyalty program allows the Group’s
distributors and associates to accumulate sales points which are exchangeable for products that are purchased from other retailers.
Since these type of points also provide a benefit to distributors and associates that they would not receive without purchasing
the Group’s products, this loyalty program represents a separate performance obligation, which is recognized as described
in Note 2u.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">u.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Revenue
recognition</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Revenues
comprise the fair value of the consideration received or to receive for the sale of goods and services in the ordinary course
of the transactions, and are presented in the combined statement of profit or loss, net of the amount of variable considerations
(discounts and product returns). To recognize revenues from contracts with its customers, the Group applies a comprehensive model,
which is based on a five-step approach consisting of the following: (1) identify the contract (verbal or written); (2) identify
performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance
obligation in the contract; and (5) recognize revenue when the Group satisfies a performance obligation. The Group recognizes
revenue at a point in time, when it transfers control over a product to a customer, which occurs when the customers take delivery
of the products and formally accepts them.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group invoices its customers at the shipment date with payment terms between 15 and 30 days; customers are allowed to request
for a product return only if the product has technical issues or physical damages. However, this right qualifies as an assurance-type
warranty (and not a performance obligation) related to the functionality of the products sold, and therefore, it is recognized
in accordance with the policy disclosed in Note 2t.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Discounts
to distributors and associates are included in the invoice price and are presented in the net sales line item from the moment
in which the customer acquires control of the products sold; thus, management does not perform estimates over discounts to be
taken by the customers.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Loyalty
program</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group operates a loyalty program through which its distributors and associates accumulate points on sales of Betterware goods
that entitle them to exchange the points for products the Group acquires from different suppliers. Since these points provide
a benefit to distributors and associates that they would not receive without purchasing the Betterware products, this loyalty
program represents a separate performance obligation.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Therefore,
the transaction price is allocated between the product and the points on a relative stand-alone selling price basis. The stand-alone
selling price per point is estimated based on the fair value of the product to be given when the points are redeemed by the distributors
and associates and the likelihood of redemption, as evidenced by the Group’s historical experience. Additionally, a contract
liability is recognized for revenue relating to the loyalty points at the time of the initial sales transaction, reducing the
revenue recognized upon the initial sale of the goods. Revenue from the loyalty points is recognized when the points are redeemed
by the customer and exchanged for the related products. Revenue for points that are not expected to be redeemed is recognized
in proportion to the pattern of rights exercised by customers.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Variable
considerations</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group adjusts the transaction price according to the estimations that may result in a variable consideration. These estimates
are determined according to the terms and conditions of the contracts with the customer, the history or the customer’s performance.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Contract
costs</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group capitalizes incremental costs to obtain a contract with a customer if it expects to recover those costs. However, the Group
does not capitalize incremental costs if the amortization period for the asset is one year or less. For any other costs related
to the fulfillment of a contract with a customer, that is not part of the revenue recognition, it is considered as an asset including
all the costs incurred, only if such costs are directly related to an existing contract or specific anticipated contract and if
those costs generate or enhance resources that will be used to satisfy performance obligations in the future and are expected
to be recovered. The Group amortizes the asset recognized for the costs to obtain and/or fulfill a contract on a systematic basis,
consistent with the pattern of transfer of the good to which the asset relates.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 25.1pt"><font style="font: normal 10pt Times New Roman, Times, Serif">v.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Financing
income and cost</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Financing
income (cost) are comprised of interest income, interest expense, the foreign currency gain (loss) on financial assets and financial
liabilities; and gain (loss) in valuation of financial derivative instruments. Those are recognized in the combined statement
of profit or loss and other comprehensive income when accrued.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">w.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Contingencies</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Significant
obligations or losses related to contingencies are recognized when it is probable that their effects will materialize and there
are reasonable elements for their quantification. If these reasonable elements do not exist, their disclosure is included qualitatively
in the notes to the combined financial statements. Income, profits or contingent assets are recognized until such time as there
is certainty of their realization.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">x.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Common
control transactions</i></b></font></td></tr></table>
<p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 53.45pt; text-align: justify; text-indent: 0in"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group has established as its accounting policy choice to recognize transactions under common control at the book value of the
assets and liabilities acquired or involved in the common control transaction (either acquisition or disposition).</font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; width: 25.1pt"><font style="font: normal 10pt Times New Roman, Times, Serif">a.</font></td><td style="font: 10pt Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Basis
of preparation</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
combined financial statements include the financial statements of Betterware and BLSM (the “combined financial statements”).
The Group prepares combined financial statements for the above-referred companies because it provides more meaningful information
to the reader as both entities are complementary to the same operation, they are under common control and operate under common
management. These combined financial statements were prepared for purposes of including them in the filing to the US Securities
and Exchange Commission as a result of the merger transaction of 2020 described in Note 1.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Transactions
among the combined companies and the balances and unrealized gains or losses arising from intra-group transactions have been eliminated
in the preparation of the combined financial statements.</font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">f.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Financial
assets</i></b></font></td></tr></table>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: 0in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">All
recognized financial assets are measured subsequently in their entirety at either amortized cost or fair value, depending on the
classification of the financial assets.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 21.25pt; text-indent: 35.45pt"><font style="font: 10pt Times New Roman, Times, Serif"><i>Classification
of financial assets </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Debt
instruments that meet the following conditions are measured subsequently at amortized cost:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 60pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 18pt"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">the
financial asset is held within a business model whose objective is to hold financial
assets in order to collect contractual cash flows; and</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 60pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 18pt"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">the
contractual terms of the financial asset give rise on specified dates to cash flows that
are solely payments of principal and interest (“SPPI”) on the principal amount
outstanding.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 78pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Debt
instruments that meet the following conditions are measured subsequently at fair value through other comprehensive income (FVTOCI):</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 60pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 18pt"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">the
financial asset is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling the financial assets; and</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 60pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 18pt"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">the
contractual terms of the financial asset give rise on specified dates to cash flows that
are SPPI on the principal amount outstanding.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 78pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">By
default, all other financial assets are measured subsequently at fair value through profit or loss (FVTPL).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Despite
the foregoing, the Group may make the following irrevocable election/designation at initial recognition of a financial asset:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 60pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 18pt"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">the
Group may irrevocably elect to present subsequent changes in fair value of an equity
investment in other comprehensive income if certain criteria are met; and</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 60pt"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 18pt"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">the
Group may irrevocably designate a debt investment that meets the amortized cost or FVTOCI
criteria as measured at FVTPL if doing so eliminates or significantly reduces an accounting
mismatch.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 78pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Amortized
cost and effective interest method</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest income
over the relevant period.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
amortized cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal
repayments, plus the cumulative amortization using the effective interest method of any difference between that initial amount
and the maturity amount, adjusted for any loss allowance. The gross carrying amount of a financial asset is the amortized cost
of a financial asset before adjusting for any loss allowance.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Foreign
exchange gains and losses</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
carrying amount of financial assets that are denominated in a foreign currency is determined in that foreign currency and translated
at the spot rate at the end of each reporting period. Specifically, for financial assets measured at amortized cost that are not
part of a designated hedging relationship, exchange differences are recognized in profit or loss.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Impairment
of financial assets</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group always recognizes lifetime expected credit losses (“ECL”) for trade receivables. The expected credit losses
on these financial assets are estimated using the simplified approach by using a provision matrix, estimated based on historical
credit loss experience based on the past due status of the debtors, adjusted as appropriate to reflect current conditions and
estimates of future economic conditions.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
all other financial instruments, the Group recognizes lifetime ECL when there has been a significant increase in credit risk since
initial recognition. However, if the credit risk on the financial instrument has not increased significantly since initial recognition,
the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECL.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Lifetime
ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial
instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on
a financial instrument that are possible within 12 months after the reporting date.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Write-off
policy</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group writes off a financial asset when there is information indicating that the debtor is in severe financial difficulty and
there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy
proceedings, or in the case of trade receivables, when the amounts are over one year past due, whichever occurs sooner. Financial
assets written off may still be subject to enforcement activities under the Group’s recovery procedures, taking into account
legal advice where appropriate. Any recoveries made are recognized in profit or loss.</font></p>
<table cellpadding="0" cellspacing="0" style="font: italic bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif">u.</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Revenue
recognition</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Revenues
comprise the fair value of the consideration received or to receive for the sale of goods and services in the ordinary course
of the transactions, and are presented in the combined statement of profit or loss, net of the amount of variable considerations
(discounts and product returns). To recognize revenues from contracts with its customers, the Group applies a comprehensive model,
which is based on a five-step approach consisting of the following: (1) identify the contract (verbal or written); (2) identify
performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance
obligation in the contract; and (5) recognize revenue when the Group satisfies a performance obligation. The Group recognizes
revenue at a point in time, when it transfers control over a product to a customer, which occurs when the customers take delivery
of the products and formally accepts them.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group invoices its customers at the shipment date with payment terms between 15 and 30 days; customers are allowed to request
for a product return only if the product has technical issues or physical damages. However, this right qualifies as an assurance-type
warranty (and not a performance obligation) related to the functionality of the products sold, and therefore, it is recognized
in accordance with the policy disclosed in Note 2t.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Discounts
to distributors and associates are included in the invoice price and are presented in the net sales line item from the moment
in which the customer acquires control of the products sold; thus, management does not perform estimates over discounts to be
taken by the customers.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Loyalty
program</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group operates a loyalty program through which its distributors and associates accumulate points on sales of Betterware goods
that entitle them to exchange the points for products the Group acquires from different suppliers. Since these points provide
a benefit to distributors and associates that they would not receive without purchasing the Betterware products, this loyalty
program represents a separate performance obligation.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Therefore,
the transaction price is allocated between the product and the points on a relative stand-alone selling price basis. The stand-alone
selling price per point is estimated based on the fair value of the product to be given when the points are redeemed by the distributors
and associates and the likelihood of redemption, as evidenced by the Group’s historical experience. Additionally, a contract
liability is recognized for revenue relating to the loyalty points at the time of the initial sales transaction, reducing the
revenue recognized upon the initial sale of the goods. Revenue from the loyalty points is recognized when the points are redeemed
by the customer and exchanged for the related products. Revenue for points that are not expected to be redeemed is recognized
in proportion to the pattern of rights exercised by customers.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Variable
considerations</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group adjusts the transaction price according to the estimations that may result in a variable consideration. These estimates
are determined according to the terms and conditions of the contracts with the customer, the history or the customer’s performance.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Contract
costs</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group capitalizes incremental costs to obtain a contract with a customer if it expects to recover those costs. However, the Group
does not capitalize incremental costs if the amortization period for the asset is one year or less. For any other costs related
to the fulfillment of a contract with a customer, that is not part of the revenue recognition, it is considered as an asset including
all the costs incurred, only if such costs are directly related to an existing contract or specific anticipated contract and if
those costs generate or enhance resources that will be used to satisfy performance obligations in the future and are expected
to be recovered. The Group amortizes the asset recognized for the costs to obtain and/or fulfill a contract on a systematic basis,
consistent with the pattern of transfer of the good to which the asset relates.</font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"><b>4.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Critical
accounting judgments and key sources of estimation uncertainty</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
the application of the Group’s accounting policies, which are described in Note 2, management of the Group is required to
make judgments, estimates, and assumptions about the carrying amounts of assets and liabilities that are not readily apparent
from other sources. The judgments, estimates and associated assumptions are based on historical experience and other factors that
are considered to be relevant. Actual results may differ from these estimates.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Management
has exercised the following critical judgments in the process of applying its accounting policies, which is considered to have
the most significant effect on the amounts recognized in the combined financial statements:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 21.3pt"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><u>Contingencies</u></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.65pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.65pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Management
makes judgments and estimates in recording provisions for matters relating to claims and litigation. Actual costs may vary from
estimates for several reasons, such as changes in cost estimates for resolution of complaints and disputes based on different
interpretations of the law, opinions and evaluations concerning the amount of loss.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.65pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.65pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Contingencies
are recorded as provisions when it is probable that a liability has been incurred and the amount of the loss is reasonably estimable.
It is not practical to estimate sensitivity to potential losses if other assumptions were used to record these provisions, due
to the number of underlying assumptions and the range of possible reasonable outcomes regarding potential actions by third parties,
such as regulators, both in terms of loss probability and estimates of such loss.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.65pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the
period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future
periods if the revision affects both current and future periods. The significant estimates impacting the Group’s combined
financial statements are as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 21.3pt"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><u>Key
assumptions used in impairment testing</u></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.6pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group performs annual impairment testing on long-lived assets, for which key assumptions are used in the calculation of the recoverable
amount (see Note 11). For impairment testing, goodwill is allocated to the cash-generating unit (“CGU”) from which
the Group has considered that economic and operational synergies of business combinations are generated. The recoverable amounts
of the CGU have been determined based on the calculations of their value in use, which require the use of estimates. The most
significant of these estimates are as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.15in; text-align: justify; text-indent: -0.25in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.9in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Estimates
of future gross and operating margins, according to the historical performance and industry
expectations of the CGU.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.15in; text-align: justify; text-indent: -0.25in"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.9in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Discount
rate based on the weighted average cost of capital (WACC) of the CGU.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.15in; text-align: justify; text-indent: -0.25in"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.9in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Long-term
growth rates.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.15in; text-align: justify; text-indent: -0.25in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 21.3pt"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><u>Loyalty
program and provision for reward points</u></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.65pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.65pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group operates a loyalty program through which its distributors and associates accumulate points on sales of Betterware goods
that entitle them to exchange the points for products the Group acquires from different suppliers. Since these points provide
a benefit to distributors and associates that they would not receive without purchasing the Betterware products, this loyalty
program represents a separate performance obligation.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.65pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.65pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Therefore,
the transaction price is allocated between the product and the points on a relative stand-alone selling price basis. The stand-alone
selling price per point is estimated based on the fair value of the product to be given when the points are redeemed by the distributors
and associates and the likelihood of redemption, as evidenced by the Group’s historical experience. Additionally, a contract
liability is recognized for revenue relating to the loyalty points at the time of the initial sales transaction. Revenue from
the loyalty points is recognized when the points are redeemed by the customer and exchanged for the related products. Revenue
for points that are not expected to be redeemed is recognized in proportion to the pattern of rights exercised by customers.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.65pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.65pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group also grants reward points to its distributors for the recruitment of associates, while associates receive such points for
the referral of new associates within a catalogue. Since these points, which are exchangeable for products Betterware acquires
from other suppliers are not related to a revenue contract, they are recognized in the statement of profit or loss within the
selling expenses line item with the corresponding provision in the statement of financial position, when the distributor or associate
earns them. The Group creates a provision for the rewards that are expected to be redeemed by its associates and distributors
based on its experience and past history.</font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"><b>7.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Inventories
and cost of sales</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 66%; text-align: left; padding-left: 0in">Finished goods</td><td style="width: 1%"> </td>
<td style="width: 9%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">224,025</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">215,812</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0in">Packing material</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,577</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,750</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0in"> </td><td> </td>
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">228,602</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">219,562</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt; padding-left: 0in">Merchandise-in-transit</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">116,952</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">82,644</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; padding-left: 0in"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">345,554</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">302,206</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
cost of inventories recognized as an expense during the year in respect of continuing operations was Ps. 1,280,829, Ps. 958,469
and Ps. 558,105, for the years ended December 31, 2019, 2018 and 2017, respectively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
cost of inventories recognized as an expense includes Ps. 14,273, Ps. 7,084 and Ps. 6,214 during 2019, 2018, and 2017, respectively,
in respect of write-downs of inventory to net realizable value. Such write-downs have been recognized to account for obsolete
inventories.</font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"><b>15.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Borrowings</b></font></td></tr></table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-left: 0.125in; text-indent: -0.125in"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.125in; width: 74%; text-align: left; padding-left: 0.125in">Line of credit with MCRF P, S.A. de C.V. SOFOM, E.N.R. of Ps. 600,000, bearing interest at a fixed rate of 13.10%. This line of credit is payable on a quarterly basis starting May 15, 2019 through May 15, 2023. BLSM Latino América Servicios, S.A. de C.V., is a guarantor in this loan.</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: right"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">516,597</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">592,252</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: 0in; padding-left: 0.125in"> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.125in; text-align: left; padding-left: 0.125in">Secured line of credit with Banamex, for up to Ps. 400,000, bearing interest at the TIIE rate plus 317 basis point. Withdrawals from this line of credit can be made during a 10-month period starting December 15, 2018, and are payable on a quarterly basis from December 17, 2019 up to December 18, 2025.</td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">135,209</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.125in; text-indent: -0.125in"> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.125in; text-align: left; padding-left: 0.125in">Unsecured line of credit with Banamex, for up to Ps. 80,000, bearing interest at the TIIE rate plus 275 basis points (renewable on a yearly basis).</td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: 0in; padding-left: 0.125in"> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Unsecured line of credit with Banamex, for up to US$ 1,800, bearing interest at LIBOR rate plus 300 basis point. Maturity was on March 31, 2018.</td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: 0in; padding-left: 0.125in"> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: 0in; padding-left: 0pt">Interest payable</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">10,907</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">11,227</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: 0in; padding-left: 0.125in"> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: 0in; padding-left: 0pt">Total debt</td><td> </td>
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">677,713</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">653,479</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: 0in; padding-left: 0.125in"> </td><td> </td>
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: 0in; padding-left: 0pt">Less: Current portion</td><td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">148,070</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">90,691</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: 0in; padding-left: 0.125in"> </td><td> </td>
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: 0in; padding-left: 0pt">Long-term debt</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">529,643</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">562,788</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">As
of December 31, 2019, the fair value of borrowings amounted Ps. 679,188. As of December 31, 2018, the fair value of borrowings
is considered to be similar to the book value (at amortized cost) determined by using the effective interest method.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Interest
expense in connection with debt presented above is included in the interest expense line in the combined statement of profit or
loss and other comprehensive income.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Reconciliation
of movements of liabilities to cash flows arising from financing activities</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
table below details changes in the Group’s liabilities arising from financing activities, including both cash and non-cash
changes. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified
in the Group’s combined statement of cash flows as cash flows from financing activities.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: justify"> </td><td style="white-space: nowrap; padding-bottom: 1.5pt"> </td>
<td style="white-space: nowrap; text-align: right"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">Long-term<br />
debt</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">Interest<br />
payable</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">Derivative<br />
financial<br />
instruments, net</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 62%">Balances as of January 1, 2018 (1)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">607,250</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">10,043</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-align: justify">Changes that represent cash flows -</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.25in; text-align: justify">Loans obtained</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">50,667</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.25in; text-align: justify">Restricted cash</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,001</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.25in; text-align: justify">Payments</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(36,829</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(85,159</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.25in; text-align: justify">Commissions and debt issuance cost</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(667</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-align: justify">Changes that do not represent cash flows -</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.25in; text-align: justify">Interest expense</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">86,343</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.25in; text-align: justify">Valuation effects of derivative financial instruments</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16,629</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.25in; text-align: justify; padding-bottom: 1.5pt">Amortization of commissions and debt issuance cost</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,744</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Balances as of December 31, 2018 (1)</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"></td><td> </td>
<td style="text-align: left">Ps.</td><td style="text-align: right">620,164</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">11,227</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16,629</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-align: justify">Changes that represent cash flows -</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.25in; text-align: justify">Loans obtained</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">104,500</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.25in; text-align: justify">Restricted cash</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">22,940</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.25in; text-align: justify">Payments</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(82,996</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(76,465</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.25in; text-align: justify">Commissions and debt issuance cost</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.125in; text-align: justify">Changes that do not represent cash flows -</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.25in; text-align: justify">Interest expense</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">85,429</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.25in; text-align: justify">Borrowing costs capitalized on PP&E</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(9,284</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.25in; text-align: justify">Valuation effects of derivative financial instruments</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,680</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.25in; text-align: justify; padding-bottom: 1.5pt">Amortization of commissions and debt issuance cost</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,198</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0; text-align: justify; padding-bottom: 1.5pt">Balances as of December 31, 2019</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">666,806</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">10,907</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">32,309</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 46.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 18pt"><font style="font: 10pt Times New Roman, Times, Serif">(1)</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Balances
in column “Long-term debt”, are presented net of restricted cash balances
as of December 31, 2018. See Note 5 for details about restricted cash.</font></td></tr></table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group’s long-term debt maturities as of December 31, 2019, are as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">Year</td><td style="border-bottom: Black 1.5pt solid"> </td>
<td style="border-bottom: Black 1.5pt solid"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td><td> </td>
<td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-left: 0">2021</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">185,447</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 0">2022</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">169,312</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 0">2023</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">245,343</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 0">2024</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">23,611</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0">2025</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">54,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">677,713</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
loans with financial institutions referred to above contain restrictive covenants, which require the Group (i) to continue to
perform the same type of activities and businesses, maintaining their legal existence, (ii) complying with all applicable laws,
(ii) having its combined financial statements audited by internationally recognized auditors authorized by the financial institution,
(iii) paying all applicable taxes, (iv) obtaining all licenses and permits required by government to operate, (v) keeping assets
and businesses insured against loss or damage, (vi) not to obtain additional loans exceeding Ps. 100,000 or 60% of earnings before
interest, taxes, depreciation and amortization (EBITDA) of the immediately preceding year, (vii) not to incur liens on the Group’s
assets, (viii) not to give or sell any rights of financial documents and (ix) not to pay dividends in an amount greater than Ps.
200,000; except in 2019 when it was permitted to pay up to Ps. 350,000. It is important to mention that additional debt may be
obtained, or dividends may be paid in amounts greater than those stipulated in the contract if prior consent from such financial
institution is obtained.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
line of credit agreement with MCRF P, S.A. de C.V. SOFOM, E.N.R. contains the following financial covenants:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif">a)</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">To
maintain a leverage ratio equal to or lower than 3.0 during 2018; and 2.5 from January
1, 2019, until the contract expiration date.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif">b)</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">To
maintain a coverage interest ratio equal to or greater than 2.5 during all term of the
contract.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif">c)</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Not
to maintain the equity book value lower than Ps. 100,000.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif">d)</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">To
maintain a minimum cash and cash equivalents balance of Ps. 40,000</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -28.35pt"><font style="font: 10pt Times New Roman, Times, Serif">The
line of credit agreement with Banamex contains the following financial covenants:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif">a)</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">To
maintain a short-term debt coverage ratio not lower than 1.5.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif">b)</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">To
maintain a total debt coverage ratio not greater than 3.0.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif">c)</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">To
maintain a leverage ratio not greater than 7.0.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif">d)</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">To
maintain a minimum cash and cash equivalents balance of Ps. 40,000</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group was in compliance with all covenants as of December, 31, 2019 and 2018. The Group obtained permission from Banamex prior
to December 31, 2019 to consummate the merger disclosed in Notes 1 and 28c.</font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"><b>17.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Provisions</b></font></td></tr></table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap"> </td><td style="white-space: nowrap; padding-bottom: 1.5pt"> </td>
<td style="white-space: nowrap; text-align: right"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">Commissions, <br /> promotions and <br /> other</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">Bonuses and <br /> other employee <br /> benefits</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">Professional <br /> services fees</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total</b></font></p></td><td style="white-space: nowrap; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%">As of January 1, 2018</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">Ps.</td><td style="width: 9%; text-align: right">41,324</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">1,158</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">42,482</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Increases</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">247,282</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">56,854</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30,704</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">334,840</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt">Payments</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(252,801</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(56,054</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(29,481</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(338,336</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>As of December 31, 2018</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"></td><td> </td>
<td style="text-align: left">Ps.</td><td style="text-align: right">35,805</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,958</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,223</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">38,986</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Increases</td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">345,148</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">90,843</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,026</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">438,017</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Payments</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(348,174</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(79,445</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,695</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(430,314</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: right; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">As of December 31, 2019</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt"></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">Ps.</td><td style="border-bottom: Black 1.5pt solid; text-align: right">32,779</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">13,356</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">554</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">46,689</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Commissions,
promotions and other</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Commissions,
promotions and other includes commissions payable to the sales force for the last week of the year, which are settled in the first
week of the following year. Additionally, it includes the provision of reward points obtained by distributors and associates for
the sale of products and for increasing the network of registered distributors and associates.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Bonuses
and other employee benefits</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Bonuses
and other employee benefits include annual performance bonuses as well as vacation provisions, vacation premium, savings fund,
among others.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Professional
services fees</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Professional
services fees includes the fees for services such as external audit, legal, internal audit, among others.</font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"><b>18.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Derivative
financial instruments</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
connection with the secured line of credit contracted with Banamex as described in Note 15, and to mitigate the risks of future
increases in interest rates, the Group entered into a derivative contract with Banamex, consisting in an interest rate swap. By
using this interest rate swap, the Group sets interest rates from variable rates to fixed rates.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Additionally,
in order to reduce the risks related to fluctuations in the exchange rate of US dollar, the Group uses derivative financial instruments
such as forwards to adjust foreign currency exposures resulting from inventory purchases in US dollars.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">An
analysis of the derivative financial instruments contracted by the Group as of December 31, 2019 and 2018, is as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 21.3pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>December
31, 2019</u></b></font></p>
<p style="margin: 0"> </p>
<p style="margin: 0"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif">Instrument</font></td>
<td style="font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Notional<br />
amount in <br /> thousands</font></td><td style="padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-size: 11pt; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Fair
<br /> Value</font></td><td style="padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Contract
<br /> date</font></td><td style="font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Maturity
<br /> date</font></td><td style="font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Rate
received</font></td><td style="font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Rate
<br /> paid</font></td><td style="padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 25%; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif">Liabilities:</font></td>
<td style="width: 1%; font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; font-size: 11pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 9%; font-size: 11pt; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 1%; font-size: 11pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 1%; font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; font-size: 11pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 9%; font-size: 11pt; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 1%; font-size: 11pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 1%; font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 11%; font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 1%; font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 11%; font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 1%; font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 14%; font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 1%; font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; font-size: 11pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 9%; font-size: 11pt; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 1%; font-size: 11pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">Interest rate swap</font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">Ps.</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">50,000</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">Ps.</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">19,614</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font-family: Times New Roman, Times, Serif">11/15/2018</font></td><td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font-family: Times New Roman, Times, Serif">12/15/2023</font></td><td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font-family: Times New Roman, Times, Serif">TIIE 28 days (1)</font></td><td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">8.33</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">%</font></td></tr>
</table>
<p style="margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">Average
<br /> Strike <br /> Ps./US$</font></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">Maturity
date</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; width: 33%; text-align: left; padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Forwards
US Dollar-Mexican Peso</font></td>
<td style="width: 1%"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">US$</font></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">47,690</font></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">12,695</font></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; width: 9%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">19.61</font></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 30%; text-align: center; padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Weekly,
through October 2020</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">Total
Liabilities</font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: bold 10pt Times New Roman, Times, Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">32,309</font></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Non-current
liability</font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">16,754</font></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Total
current liability</font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">15,555</font></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">(1)
As of December 31, 2019, the 28-day TIIE rate was 7.55%.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 21.3pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>December
31, 2018</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 21.3pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif">Instrument</font></td><td style="padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font-family: Times New Roman, Times, Serif"><b>Notional</b></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font-family: Times New Roman, Times, Serif"><b>amount
in<br /> thousands</b></font></p></td><td style="padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Fair
<br /> Value</font></td><td style="padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Contract
<br /> date</font></td><td style="font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Maturity
<br /> date</font></td><td style="font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Rate
<br /> received</font></td><td style="font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">Rate
<br /> paid</font></td><td style="padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; padding-left: 0in"><font style="font-family: Times New Roman, Times, Serif">Liabilities:</font></td><td style="font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 11pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-size: 11pt; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-size: 11pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 11pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-size: 11pt; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-size: 11pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 11pt; text-align: center; padding-left: 3.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 11pt; text-align: center; padding-left: 3.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 11pt; text-align: center; padding-left: 3.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-size: 11pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 11pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-size: 11pt; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-size: 11pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 25%; text-align: left; text-indent: 0; padding-left: 0"><font style="font-family: Times New Roman, Times, Serif">Interest
rate swap</font></td><td style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif">Ps.</font></td><td style="width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">50,000</font></td><td style="width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif">8,364</font></td><td style="width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 11%; text-align: center; padding-left: 3.5pt"><font style="font-family: Times New Roman, Times, Serif">15/11/2018</font></td><td style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 11%; text-align: center; padding-left: 3.5pt"><font style="font-family: Times New Roman, Times, Serif">15/12/2023</font></td><td style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 14%; text-align: center; padding-left: 3.5pt"><font style="font-family: Times New Roman, Times, Serif">TIIE
28 days (1)</font></td><td style="width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif">8.33</font></td><td style="width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif">%</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td colspan="2" style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Average <br />
Strike <br />
Ps./US$</b></font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Maturity date</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 33%"><font style="font: 10pt Times New Roman, Times, Serif">Forwards US Dollar-Mexican Peso</font></td>
<td style="width: 1%"> </td>
<td style="border-bottom: black 1.5pt solid; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">US$</font></td>
<td style="border-bottom: black 1.5pt solid; width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">24,414</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="border-bottom: black 1.5pt solid; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td>
<td style="border-bottom: black 1.5pt solid; width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">8,265</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">20.06</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 30%; padding-left: 3.5pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Weekly, through June 2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="padding-left: 3.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Total Liabilities</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Ps.</b></font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>16,629</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="padding-left: 3.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="padding-left: 3.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Non-current liability</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b>Ps.</b></font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>8,120</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="padding-left: 3.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="padding-left: 3.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Total current liability</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b>Ps.</b></font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>8,509</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="padding-left: 3.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">(1)
As of December 31, 2018, the 28-day TIIE rate was 8.5956%.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
impacts to profit and loss of the derivative financial instruments for the years ended December 31, 2019 and 2018 amounted to a
loss of Ps. (15,680) and Ps. (16,629), respectively, which is included in the combined statements of comprehensive income in the
line item of “Valuation of derivatives, interest cost and other financial items, net”.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
maturities of the notional amount of the derivatives are as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: left">Instrument</td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Notional amount in thousands of</td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">2020</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">2021</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">2022</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">2023</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">2024 and thereafter</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 30%; font-weight: bold">Liabilities:</td><td style="width: 1%"> </td>
<td style="width: 9%"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 10pt; text-align: left">Interest rate swap</td><td> </td>
<td style="text-align: center">Ps.</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,458</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,833</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,833</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,833</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">31,043</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 10pt; text-align: left">Forwards US Dollar-Mexican Peso</td><td> </td>
<td style="text-align: center">US$</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">12,695</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group does not apply hedge accounting and it recognizes the changes in fair value of financial derivative instruments in profit
or loss.</font></p>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif"><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>21.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Net
parent investment</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Net
parent investment as of December 31, 2019 and 2018 is integrated as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif">Net
parent investment</font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">2019</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">2018</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-family: Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-family: Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Times New Roman, Times, Serif; width: 76%; text-align: justify"><font style="font-family: Times New Roman, Times, Serif">Capital stock</font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif">55,985</font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif">55,985</font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif">Retained earnings</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">218,376</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">24,234</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif">Other comprehensive
income</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">121</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">45</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">274,482</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">80,264</font></td><td style="padding-bottom: 1.5pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Net
parent investment as of December 31, by number of shares, is integrated as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Betterware de México, <br />
S.A.P.I. de C.V. (formerly <br />
Betterware
de México, S.A. de C.V.)</b></font></p></td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>BLSM Latino América </b></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Servicios, S.A. de C.V.</b></font></p></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 28%; text-align: justify">Fixed capital</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">5,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">5,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">5,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">5,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">5,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">5,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1.5pt">Variable capital</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,032,939</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,032,939</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,786,193</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,654,378</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,654,378</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,475,150</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,037,939</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,037,939</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,791,193</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,659,378</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,659,378</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,480,150</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Common
stock is represented by common shares, with a par value of Ps. 10 in regard to fixed capital and without par value in case of
variable capital, fully subscribed and paid. Variable capital is unlimited.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
February 13, 2018, the Ordinary General Shareholders’ Meeting of Betterware de México agreed to reduce the capital
stock by Ps. 97,921. On December 5, 2018, as part of the unanimous resolutions adopted outside the Shareholders’ Meeting,
it was agreed to increase capital stock by Ps. 20.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
July 28, 2017, at an Extraordinary General Shareholders’ Meeting it was agreed to merge Betterware de México as the
surviving entity with Betterware Controladora, S.A. de C.V. (“BWC”) and Strevo Holding, S.A. de C.V. (“SH”,
controlling company of BWC and in turn, subsidiary of Campalier, S.A. de C.V.), as merged companies. The transaction was carried
out as of July 28, 2017, so as of that date, the merged entities ceased to exist. Upon the merger becoming effective, all of the
assets, liabilities, rights, and obligations of the merged companies were incorporated into the merging company, without reservations
or limitations. As a result of the transaction, which was accounted for as a pooling of interest between entities under common
control, the capital stock of Betterware increased by Ps. 87,317, retained earnings decreased by Ps. 174,801 and net stockholders’
equity decreased by Ps. 87,484.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
December 4, 2017, the Ordinary General Shareholders’ Meeting of BLSM agreed to increase capital stock by Ps. 15. On December
5, 2018, as part of the unanimous resolutions adopted outside the Shareholders’ Meeting, it was agreed to increase capital
stock by Ps. 20.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Retained
earnings</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
May 29, 2019, the Ordinary General Shareholders’ Meeting approved dividends payment from retained earnings for an amount
of Ps. 128,000 which were paid in cash. Part of this amount (Ps. 78,151) was paid to Campalier based on its equity interest.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
October 8, 2019, the Ordinary General Shareholders’ Meeting approved dividends payment from retained earnings for an amount
of Ps. 150,000 which were paid in cash. Part of this amount (Ps. 91,583) was paid to Campalier based on its equity interest.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
February 13, 2018, the Ordinary General Shareholders’ Meeting approved dividends payment from retained earnings for an amount
of Ps. 79,080, which were paid in cash. Part of this amount (Ps. 46,696) was paid to Campalier based on its equity interest.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
November 28, 2018, the Ordinary General Shareholders’ Meeting approved payment of dividends from profits generated in the
year, for an amount of Ps. 111,000, which were paid in cash. Part of this amount (Ps. 65,545) was paid to Campalier based on its
equity interest.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
December 4, 2018, the Ordinary General Shareholders’ Meeting approved payment of dividends from profits generated in the
year, in the amount of Ps. 110,000. From this amount, Ps. 45,045 was paid in cash; while the remaining for Ps. 64,955 was paid
on March 31, 2019, hence it is included as a liability in the combined statement of financial position.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Legal
reserve</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">Retained
earnings include the statutory legal reserve. The Mexican General Corporate Law requires that at least 5% of net income of the
year be transferred to the legal reserve until the reserve equals 20% of common stock at par value (historical pesos). The legal
reserve may be capitalized but may not be distributed unless the Group is dissolved. The legal reserve must be replenished if
it is reduced for any reason. As of December 31, 2019 and </font><font style="font: 10pt Times New Roman, Times, Serif">2018,
<font style="letter-spacing: -0.1pt">the legal reserve, in historical pesos, was Ps. 10,370 and Ps. 8,571, respectively, and it
is included in retained earnings.</font></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Betterware de México, <br />
S.A.P.I. de C.V. (formerly <br />
Betterware
de México, S.A. de C.V.)</b></font></p></td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>BLSM Latino América </b></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Servicios, S.A. de C.V.</b></font></p></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; width: 28%">Fixed capital</td><td style="width: 1%"> </td>
<td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 9%">5,000</td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td>
<td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 9%">5,000</td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td>
<td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 9%">5,000</td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td>
<td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 9%">5,000</td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td>
<td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 9%">5,000</td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td>
<td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 9%">5,000</td><td style="text-align: left; width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1.5pt">Variable capital</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,032,939</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,032,939</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,786,193</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,654,378</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,654,378</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,475,150</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,037,939</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,037,939</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,791,193</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,659,378</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,659,378</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,480,150</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
148070000
90691000
181734000
7519000
7519000
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif"><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>22.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Earnings
per share</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
amount of basic earnings per share is calculated by dividing the net income for the year attributable to shareholders of the Group's
ordinary shares by the weighted average of the ordinary shares outstanding during the year.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
amount of diluted earnings per share is calculated by dividing the net profit attributable to shareholders of the parent's ordinary
shares (after adjusting it due to interest on convertible preferred shares) by the weighted average of ordinary shares outstanding
during the year plus the weighted average of common shares that would have been issued at the time of converting all diluted potential
ordinary shares into ordinary shares. As of December 31, 2019, 2018 and 2017, the Group has no potentially dilutive shares.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
a result of the transaction between Betterware and DD3 and the subscription and payment of 2,040,000 Betterware's shares
in Nasdaq, which closed on March 13, 2020 (see Notes 1 and 28c), all Betterware shares issued and outstanding immediately prior
to the closing date were canceled and new shares were issued. As of the closing date, BLSM is now a wholly-owned subsidiary of
Betterware, who will begin to prepare consolidated financial statements as of such date. Betterware's original shareholders
maintained an ownership of 87.7% of the total outstanding shares, DD3's shareholders obtained a 6.4% ownership interest
and investors under the Nasdaq listing a 5.9% ownership interest. After the closing date, Betterware has 34,451,020 shares issued
and outstanding.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">IFRS
requires that the calculation of basic and diluted earnings per share ("EPS") for all periods presented be adjusted
retrospectively when the number of ordinary or potential ordinary shares outstanding increases as a result of a capitalization,
bonus issue, or share split, or decreases as a result of a reverse share split. If such changes occur after the statement of financial
position date but before the financial statements are authorized for issue, the EPS calculations for those and any prior period
financial statements presented are based on the new number of shares.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
a result of the cancellation and issuance of new shares on March 13, 2020, the EPS in the combined financial statements has
been adjusted for all periods presented to reflect the amount of shares attributable to the Betterware original shareholders
resulting from the transaction described above as follows: 87.7% of the total outstanding shares of 34,451,020, which is
equal to 30,199,945 shares without giving effect to the DD3 shareholders' capital contribution and the proceeds from
the Nasdaq listing. The effects of the DD3 transaction, including the related share issuance that resulted in DD3's
shareholders obtaining a 6.4% ownership interest and the net capital contribution of US$7,519 (Ps. 181,734), and the effects
of the Nasdaq listing, have not been included in the calculation of EPS for the periods presented as they are considered to
be non-adjusting subsequent events that will be reflected in Betterware's 2020 consolidated financial
statements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif">The
following table shows the income and share data used in the calculation of basic earnings per share for the years ended December
31, 2019, 2018 and 2017:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: center"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">2019</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">2018</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">2017</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"><b>Net income (in thousands
of pesos)</b></font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Times New Roman, Times, Serif; width: 64%; text-align: left"><p style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">Attributable to shareholders</font></p></td><td style="font-family: Times New Roman, Times, Serif; width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Ps.</font></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif">472,218</font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif">299,267</font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif">207,674</font></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"><b>Shares (in thousands
of shares)</b></font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 2.85pt"></p><p style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">Weighted
average of outstanding shares</font></p></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">30,200</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">30,200</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">30,200</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">Basic and diluted earnings per share (pesos per share)</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">15.63</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">9.91</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">6.88</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"><b>1.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Nature
of business and significant events of 2019</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Betterware
de México, S.A.P.I. de C.V. (formerly Betterware de México, S.A. de C.V., see Note
28c) ("Betterware") is a direct-to-consumer selling company, focused on the home organization
segment whose product portfolio includes home organization, kitchen preparation, food containers, among other categories ("Home
Organization Products"). Betterware purchases these Home Organization Products and sells them through 9 (nine) catalogs
issued throughout the year.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">BLSM
Latino América Servicios, S.A. de C.V., ("BLSM") is a related party that provides administrative, technical
and operating services to Betterware.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Betterware
and BLSM (together hereinafter the "Group") are companies incorporated in Mexico and carry out their operations in
Mexico. The Group's address, both its registered office and principal place of business, is Luis Enrique Williams 549, Parque
Industrial Belenes Norte, Zapopan, Jalisco, México, C.P. 45150.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
ultimate parent company is Campalier, S.A. de C.V. ("Campalier").</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Significant
events – </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 28.35pt"></td><td style="width: 14.2pt"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="text-align: justify">On August 5, 2019, Betterware and DD3 Acquisition Corp. ("DD3", a publicly listed entity
in the US and whose shares traded on the Nasdaq Capital Market ("Nasdaq")),
announced they had entered into a business combination agreement. As part of this transaction, DD3 would merge into Betterware
through an exchange of shares with their respective shareholders and Betterware would survive as the acquiror. BLSM would become
a wholly-owned subsidiary of Betterware. As the surviving entity and accounting acquiror, a selected number of shares of Betterware
would become publicly	 listed on Nasdaq as a result of the transaction. The transaction closed on March 13, 2020 and Betterware
issued shares to DD3's shareholders and obtained cash of US$22,767 (Ps. 498,445) through the acquisition of DD3 and concurrently
settled liabilities owed by DD3 and related transaction costs on such date, for net cash proceeds of US$7,519 (Ps. 181,734).
Immediately after the transaction closed, on the same day, 2,040,000 shares of Betterware offered for subscription and payment
under its initial public offering on Nasdaq were subscribed and paid for by different investors (see Note 28c).</td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"></font> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 14.2pt"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">During August 2019, the Group started building a distribution center
which is estimated to be completed in the fourth quarter of 2020. As of December 31, 2019, payments related to this construction
amounted to Ps. 165 million. The total investment is estimated to amount to Ps. 581 million.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.4pt"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 28.35pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 14.2pt"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
July 28, 2017, the Extraordinary General Shareholders' Meeting agreed to merge
Betterware, as a merging company, with Betterware Controladora, S.A. de C.V. and Strevo
Holding, S.A. de C.V. (holding company and a related party, respectively), as merged
companies. The merger was carried out based on the figures as of July 28, 2017, so as
of that date, the merged entities ceased to exist. In accordance with the General Law
of Commercial Companies, when the merger took effect, all of the assets, liabilities,
rights, obligations, and liabilities of the merged companies were incorporated into the
merging company, without reservations or limitations. As a result of this, Betterware's
assets decreased by Ps. 16,513, liabilities increased by Ps. 60,144 and stockholders'
equity decreased by Ps. 76,657 (see Note 21). The afore-mentioned transaction was accounted
for as a pooling of interest between entities under common control, therefore, it was
recognized by Betterware at the book value of the assets, liabilities and stockholders'
equity of the merged entities at the date of the merger.</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif"><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>28.</b></font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Subsequent
events</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; width: 0.25in; text-indent: 0; vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">a)</font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif">On
January 10, 2020, the Ordinary General Shareholders' Meeting approved a dividends
payment from retained earnings for an amount of Ps. 70,000 which were paid in cash. Part
of this amount (Ps. 42,739) was paid to Campalier based on its equity interest.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; width: 0.25in; text-indent: 0; vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">b)</font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif">On
January 30, 2020, the Group renegotiated the interest rate of the secured line of credit
with Banamex, which changed from TIIE rate plus 317 basis points to TIIE rate plus 260
basis points. In addition, withdrawals from this line of credit were extended to August
2020, and are payable on a quarterly basis from September 2020 up to December 18, 2025
(see Note 15). The assessment required by IFRS 9 to conclude whether the renegotiation
qualified as an extinguishment or modification of a financial liability (see note 2g)
was performed and qualified as a modification of debt.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 35.4pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 35.4pt"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 28.35pt"></td><td style="width: 0.25in">c)</td><td style="text-align: justify">As of March 10, 2020, Betterware's legal designation changed from Betterware, S.A. de
C.V. to Betterware. S.A.P.I. de C.V. Additionally, the transaction with DD3 closed on March 13, 2020. All Betterware shares
issued and outstanding immediately prior to the closing date were canceled and new shares were issued. Betterware issued
shares to DD3's shareholders and obtained cash of US$22,767 (Ps. 498,445) through the acquisition of DD3 and
concurrently settled liabilities owed by DD3 and related transaction costs on such date, for net cash proceeds of US$7,519
(Ps. 181,734) on such date. No other assets or liabilities were transferred as part of the transaction. On the same date,
2,040,000 shares of Betterware offered for subscription and payment under its initial public offering on Nasdaq were
subscribed and paid for by different investors. As of the closing date, BLSM is now a wholly-owned subsidiary of Betterware.
As a result of the transaction, Betterware's original shareholders maintained an ownership of 87.7% of the total
outstanding shares, DD3's shareholders obtained a 6.4% ownership interest and investors under the Nasdaq listing a 5.9%
ownership interest. After the closing date, Betterware has 34,451,020 shares issued and outstanding.</td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 35.4pt"><font style="font: 10pt Times New Roman, Times, Serif"></font> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; width: 0.25in; text-indent: 0; vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">d)</font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif">On
March 25, 2020, the Group withdrew Ps. 74,000 from its secured line of credit with Banamex
(see Notes 15 and 28b).</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 35.4pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; width: 0.25in; text-indent: 0; vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">e)</font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif">On
March 27, 2020, the Group made a prepayment to the line of credit with MCRF P, S.A. de
C.V. SOFOM, E.N.R of Ps. 258,750. In addition, on April 27, 2020, the Group paid the
outstanding amount of the line of credit using corporate resources (see Note 15).</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 35.4pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; width: 0.25in; text-indent: 0; vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">f)</font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif">On
April 13, 2020, the Group withdrew Ps. 100,000 from its secured line of credit with Banamex
(see Notes 15 and 28b).</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 64.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; padding: 0; width: 28.35pt; text-indent: 0"></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; width: 0.25in; text-indent: 0; vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">g)</font></td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif">As
a result of the outbreak of the Coronavirus (COVID-19) and its recent global expansion
to a large number of countries, it has led to the viral outbreak being classified as
a pandemic by the World Health Organization since March 11, 2020. Sanitary measures have
been taken in Mexico to limit the spread of this virus, which include among others, social
isolation and the closure of educational centers (schools and universities), commercial
establishments and non-essential businesses. There is strong uncertainty about how this
virus will evolve in Mexico, the time needed for precautionary and/or containment measures
to take effect, and the outcome it will have on the national economy; therefore the economic
impacts and consequences for the Company's operations are uncertain and will depend
to a large extent on the evolution and spread of the pandemic in the coming months, as
well as the reaction and adaptation capacity of all the economic agents impacted.</font></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; text-indent: 0; vertical-align: top"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"> </td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; text-indent: 0; vertical-align: top"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif">The
Company's operations have not been interrupted as a result of the COVID-19 pandemic as its product lines include hygiene and cleaning
solutions, which qualify as an essential activity in Mexico. The supply chain has not been affected either, as the Company maintains
sufficient inventory levels to supply sales for the subsequent 13 weeks, and its foreign suppliers restarted normal activities
on March 1st of 2020. Net sales in 2020 from week one to sixteen increased with respect to the same period of the previous year.
The Company's gross margin has been negatively affected by promotions aimed at gaining market share and the appreciation
of the U.S. dollar compared to the Mexican peso's impact on inventory costs as it purchases most of its products in U.S.
dollars. In order to mitigate this risk, the Company enters into forward contracts to fix the exchange rate for future purchases
in dollars, which has allowed it to partially reduce the exchange rate effects of the COVID-19 pandemic. In addition, management
is working on plans to increase the introduce products with higher profit margins and therefore reduce the negative effects that
impact its profit margin. The Company maintains sufficient liquidity to meet its contractual obligations as a result of available
sources of financing, in addition its customer's payment terms are maintained between 14 and 28 days, while its payment terms
to its suppliers are 120 days.</font></td></tr></table>
Balances in column "Long-term debt", are presented net of restricted cash balances as of December 31, 2018. See Note 5 for details about restricted cash.
Merged with the Group on July 28, 2017
As of December 31, 2018, the 28-day TIIE rate was 8.5956%.