Consolidated statements of cash flows

For the years ended December 31, 2014 and 2013
(Millions of Mexican pesos)

  Note     2014   2013
Cash flows from operating activities            
(Loss) profit before income tax     Ps (1,686) Ps 9,987
Depreciation and amortization 12,13     9,607   7,932
Impairment of long-lived assets       283   2,518
Costs associated with seniority premiums and pension plan       287   93
Gain on sale of property, plant and equipment       (153)   (1)
Effect of changes in fair value of derivative financial instruments       397   50
Foreign exchange, net       5,544   365
Other non-operating expenses and finance products, net       4,157   2,808
Impairment of financial assets available for sale       8,665   -
Decrease (increase) in customers and other accounts receivable       357   (1,131)
Increase in inventory       (899)   (584)
Increase in suppliers and other accounts payable       1,925   2,104
Income tax paid       (4,531)   (4,383)
Net cash generated from operating activities       23,953   19,758
Cash flows from investing activities            
Interest received       215   267
Investments in financial assets available for sale 2.b     (14,135)   -
Acquisition of property, plant and equipment 12     (8,824)   (7,763)
Purchases of intangible assets 13     (5,606)   (4,435)
Business acquisitions, net of cash received 2.a y 2.i     344   (7,116)
Restricted cash       (199)   474
Dividends received       362   43
Related parties       (266)   -
Other assets       (361)   (373)
Net cash used in investing activities       (28,470)   (18,903)
Cash flows from financing activities            
Proceeds from borrowings or debt 17     41,965   38,247
Payments of borrowings or debt 17     (26,288)   (33,329)
Interest paid       (4,490)   (3,631)
Dividends paid by Alfa, S. A. B. de C. V.       -   (3,510)
Dividends paid to the non-controlling interest 3.b     (183)   (1,612)
Repurchase of shares 22     (258)   (99)
Changes in the non-controlling interest       (1,387)   1,133
Other       (768)   137
Cash generated from (used) in financing activities       8,591   (2,664)
Net increase (decrease) in cash and cash equivalents       4,074   (1,809)
Exchange losses on cash and cash equivalents       693   50
Cash and cash equivalents at beginning of year       11,902   13,661
Cash and cash equivalents at end of year     Ps 16,669 Ps 11,902

Transactions not requiring cash flow
The main transaction corresponded to the acquisition of the Campofrío subsidiary, see Note 2.a

The accompanying notes are an integral part of these consolidated financial statements.