TELMEX: FOURTH QUARTER 2003 FEBRUARY 03,2004

TELÉFONOS DE MÉXICO, S.A. DE C.V.

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

 I N D E X

FS-01 CONSOLIDATED BALANCE SHEETS, AT DECEMBER 31, 2003 & 2002

FS-02 CONSOLIDATED BALANCE SHEETS - BREAKDOWN OF MAIN CONCEPTS -

FS-03 CONSOLIDATED BALANCE SHEETS - OTHER CONCEPTS -

FS-04 CONSOLIDATED STATEMENTS OF INCOME FROM JANUARY 01 TO DECEMBER 31, 2003 & 2002

FS-05 CONSOLIDATED STATEMENTS OF INCOME - BREAKDOWN OF MAIN CONCEPTS -

FS-06 CONSOLIDATED STATEMENTS OF INCOME - OTHER CONCEPTS -

FS-07 CONSOLIDATED STATEMENTS OF INCOME FROM OCTOBER 01 TO DECEMBER 31, 2003 & 2002

FS-08 CONSOLIDATED STATEMENTS OF INCOME, FOURTH QUARTER - BREAKDOWN OF MAIN CONCEPTS -

FS-09 CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION FROM JANUARY 01 TO DECEMBER 31, 2003 & 2002

FS-10 CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION - BREAKDOWN OF MAIN CONCEPTS -

FI-01 RATIOS - CONSOLIDATED INFORMATION

FI-02 DATA PER SHARE - CONSOLIDATED INFORMATION

ANNEX 1.- CHIEF EXECUTIVE OFFICER REPORT

ANNEX 2.- NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

ANNEX 3.- SHARE INVESTMENTS

ANNEX 5.- CREDITS BREAKDOWN

ANNEX 6.- FOREING EXCHANGE MONETARY POSITION

ANNEX 7.- CALCULATION OF MONETARY POSITION

ANNEX 8.- BONDS AND/OR MEDIUM-TERM NOTES LISTED IN STOCK MARKET

ANNEX 9.- PLANTS, - COMMERCIAL, DISTRIBUTION AND/OR SERVICE CENTERS-

ANNEX 10.- RAW MATERIALS

ANNEX 11.- DOMESTIC SALES - MAIN SERVICES -

ANNEX 11b.- FOREIGN SALES - MAIN SERVICES -

ANNEX 13.- PROJECT INFORMATION

ANNEX 14.- TRANSACTIONS IN FOREIGN CURRENCY AND EXCHANGE OF FINANCIAL STATEMENTS FROM FOREIGN OPERATIONS

INTEGRATION OF PAID CAPITAL STOCK

GENERAL INFORMATION

BOARD OF DIRECTORS

DECLARATION BY THE COMPANY'S OFFICERS THAT ARE RESPONSIBLE FOR THE INFORMATION

 

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FS-01

CONSOLIDATED BALANCE SHEETS

AT DECEMBER 31, 2003 & 2002

(Thousand Pesos)

Final printing

---

REF

S

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

%

Amount

%

1

TOTAL ASSETS

185,761,991

100

175,509,732

100

2

CURRENT ASSETS

39,842,602

21

38,207,899

22

3

CASH AND SHORT-TERM INVESTMENTS

17,543,940

9

14,913,000

8

4

ACCOUNTS RECEIVABLE, NET

16,805,105

9

17,911,515

10

5

OTHER ACCOUNTS RECEIVABLE, NET

2,735,715

1

2,019,120

1

6

INVENTORIES

716,470

0

933,160

1

7

OTHER CURRENT ASSETS

2,041,372

1

2,431,104

1

8

LONG - TERM

833,381

0

944,148

1

9

ACCOUNTS RECEIVABLE, NET

0

0

0

0

10

INVESTMENT IN SHARES OF SUBSIDIARIES AND AFFILIATES NON-CONSOLIDATED

690,862

0

822,225

0

11

OTHER INVESTMENTS

142,519

0

121,923

0

12

PLANT, PROPERTY AND EQUIPMENT, NET

120,661,992

65

127,021,833

72

13

PROPERTY

0

0

0

0

14

MACHINERY AND INDUSTRIAL EQUIPMENT

300,040,549

162

277,569,441

158

15

OTHER EQUIPMENTS

0

0

0

0

16

ACCUMULATED DEPRECIATION

179,823,252

97

155,982,669

89

17

CONSTRUCTIONS IN PROGRESS

444,695

0

5,435,061

3

18

DEFERRED ASSETS, NET

668,768

0

810,223

0

19

OTHER ASSETS

23,755,248

13

8,525,629

5

20

TOTAL LIABILITIES

106,112,590

100

111,911,533

100

21

CURRENT LIABILITIES

37,242,232

35

33,153,220

30

22

SUPPLIERS

0

0

0

0

23

BANK LOANS

11,174,032

11

11,325,236

10

24

STOCK MARKET LOANS

9,087,969

9

174,526

0

25

TAXES PAYABLE

1,259,932

1

4,165,613

4

26

OTHER CURRENT LIABILITIES

15,720,299

15

17,487,845

16

27

LONG - TERM LIABILITIES

48,416,163

46

57,266,015

51

28

BANK LOANS

12,876,163

12

22,712,161

20

29

STOCK MARKET LOANS

35,540,000

33

34,553,854

31

30

OTHER LOANS

0

0

0

0

31

DEFERRED CREDITS

20,454,195

19

13,495,846

12

32

OTHER LIABILITIES

0

0

7,996,452

7

33

CONSOLIDATED STOCKHOLDERS' EQUITY

79,649,401

100

63,598,199

100

34

MINORITY INTEREST

0

0

0

0

35

MAJORITY INTEREST

79,649,401

100

63,598,199

100

36

CONTRIBUTED CAPITAL

39,102,140

49

40,202,981

63

37

CAPITAL STOCK (NOMINAL)

302,730

0

319,428

1

38

RESTATEMENT OF CAPITAL STOCK

27,388,115

34

28,472,267

45

39

PREMIUM ON SALES OF SHARES

11,411,295

14

11,411,286

18

40

CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES

0

0

0

0

41

CAPITAL INCREASE (DECREASE)

40,547,261

51

23,395,218

37

42

RETAINED EARNINGS AND CAPITAL RESERVE

79,030,972

99

77,350,800

122

43

RESERVE FOR REPURCHASE OF OWN SHARES

0

0

0

0

44

EXCESS (SHORTFALL) FROM RESTATEMENT OF STOCKHOLDERS' EQUITY

(60,933,474)

(77)

(74,302,300)

(117)

45

NET INCOME

22,449,763

28

20,346,718

32

 ---

 

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FS-02

CONSOLIDATED BALANCE SHEETS

- BREAKDOWN OF MAIN CONCEPTS -

(Thousand Pesos)

Final printing

--- 

REF

S

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

%

Amount

%

3

CASH AND SHORT- TERM INVESTMENTS

17,543,940

100

14,913,000

100

46

CASH

1,088,135

6

1,089,563

7

47

SHORT-TERM INVESTMENTS

16,455,805

94

13,823,437

93

18

DEFERRED ASSETS, NET

668,768

100

810,223

100

48

AMORTIZED OR REDEEMED EXPENSES

586,933

88

628,232

78

49

GOODWILL

81,835

12

181,991

22

50

DEFERRED TAXES

0

0

0

0

51

OTHERS

0

0

0

0

21

CURRENT LIABILITIES

37,242,232

100

33,153,220

100

52

FOREIGN CURRENCY LIABILITIES

18,961,421

51

11,321,216

34

53

MEXICAN PESOS LIABILITIES

18,280,811

49

21,832,004

66

24

STOCK MARKET SHORT-TERM SECURITIES

9,087,969

0

174,526

100

54

COMMERCIAL PAPER

0

0

174,526

100

55

MEDIUM-TERM NOTES

0

0

0

0

56

CURRENT MATURITIES OF SECURITIES

9,087,969

0

0

0

26

OTHER CURRENT LIABILITIES

15,720,299

100

17,487,845

100

57

OTHER CURRENT LIABILITIES WITH COST

0

0

0

0

58

OTHER CURRENT LIABILITIES WITHOUT COST

15,720,299

100

17,487,845

100

27

LONG - TERM LIABILITIES

48,416,163

100

57,266,015

100

59

FOREIGN CURRENCY LIABILITIES

40,966,163

85

48,167,162

84

60

MEXICAN PESOS LIABILITIES

7,450,000

15

9,098,853

16

29

STOCK MARKET LONG-TERM SECURITIES

35,540,000

100

34,553,854

100

61

BONDS

35,540,000

100

34,553,854

100

62

MEDIUM-TERM NOTES

0

0

0

0

30

OTHER LOANS

0

0

0

0

63

OTHER LOANS WITH COST

0

0

0

0

64

OTHER LOANS WITHOUT COST

0

0

0

0

31

DEFERRED CREDITS

20,454,195

100

13,495,846

100

65

GOODWILL

0

0

0

0

66

DEFERRED TAXES

20,454,195

100

13,495,846

100

67

OTHERS

0

0

0

0

32

OTHER LIABILITIES

0

0

7,996,452

100

68

RESERVES

0

0

7,996,452

100

69

OTHERS LIABILITIES

0

0

0

0

44

EXCESS (SHORTFALL) FROM RESTATEMENTS OF STOCKHOLDERS' EQUITY

(60,933,474)

100

(74,302,300)

100

70

ACCUMULATED MONETARY POSITION INCOME

(12,921,106)

21

(12,921,105)

17

71

RESULT FROM HOLDING NON-MONETARY ASSETS

(48,012,368)

79

(61,381,195)

83

---

 

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FS-03

CONSOLIDATED BALANCE SHEETS

- OTHER CONCEPTS -

(Thousand Pesos)

Final printing

---

REF

S

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

Amount

72

WORKING CAPITAL

2,600,370

5,054,679

73

PENSIONS FUND AND SENIORITY PREMIUMS

0

7,996,452

74

EXECUTIVES (*)

133

139

75

EMPLOYEES (*)

11,337

11,659

76

WORKERS (*)

50,633

51,977

77

OUTSTANDING SHARES (*)

12,109,205,252

12,777,101,725

78

REPURCHASE OF OWN SHARES (*)

670,153,231

387,745,943

(*)

THESE CONCEPTS SHOULD BE EXPRESSED IN UNITS.

---

 

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FS-04

CONSOLIDATED STATEMENTS OF INCOME

- FROM JANUARY 01 TO DECEMBER 31, 2003 & 2002 -

(Thousand Pesos)

Final printing

---

REF

S

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

%

Amount

%

1

OPERATING REVENUES

116,847,959

100

117,240,676

100

2

COST OF SALES AND SERVICES

60,063,108

51

58,873,313

50

3

GROSS INCOME

56,784,851

49

58,367,363

50

4

OPERATING COSTS

17,246,360

15

17,205,924

15

5

OPERATING INCOME

39,538,491

34

41,161,439

35

6

COMPREHENSIVE FINANCING COST

4,069,968

3

6,694,670

6

7

INCOME AFTER COMPREHENSIVE FINANCING COST

35,468,523

30

34,466,769

29

8

OTHER FINANCIAL OPERATIONS

0

0

0

0

9

INCOME BEFORE INCOME TAX AND EMPLOYEE PROFIT SHARING

35,468,523

30

34,466,769

29

10

PROVISIONS FOR INCOME TAX AND EMPLOYEE PROFIT SHARING

12,840,068

11

13,858,332

12

11

INCOME AFTER INCOME TAX AND EMPLYEE PROFIT SHARING

22,628,455

19

20,608,437

18

12

EQUITY IN RESULTS OF SUBSIDIARIES AND AFFILIATES

(178,692)

0

(261,719)

0

13

INCOME FROM CONTINUOUS OPERATIONS

22,449,763

19

20,346,718

17

14

INCOME FROM DISCONTINUOUS OPERATIONS, NET

0

0

0

0

15

NET INCOME BEFORE EXTRAORDINARY ITEMS

22,449,763

19

20,346,718

17

16

EXTRAORDINARY ITEMS NET EXPENDITURES (REVENUES)

0

0

0

0

17

NET EFFECT OF CHANGES IN ACCOUNTING PRINCIPLES

0

0

0

0

18

NET INCOME

22,449,763

19

20,346,718

17

19

MINORITY INTEREST

0

0

0

0

20

MAJORITY INTEREST

22,449,763

19

20,346,718

17

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FS-05

CONSOLIDATED STATEMENTS OF INCOME

- BREAKDOWN OF MAIN CONCEPTS -

(Thousand Pesos)

Final printing

---

REF

R

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

%

Amount

%

1

OPERATING REVENUES

116,847,959

100

117,240,676

100

21

DOMESTIC

114,523,397

98

114,608,130

98

22

FOREIGN

2,324,562

2

2,632,546

2

23

TRANSLATION INTO DOLLARS (***)

210,632

0

255,763

0

6

COMPREHENSIVE FINANCING COST

4,069,968

100

6,694,670

100

24

INTEREST EXPENSE

5,578,730

137

6,286,166

94

25

EXCHANGE LOSS

3,132,968

77

4,621,494

69

26

INTEREST INCOME

2,989,762

73

1,306,651

20

27

EXCHANGE GAIN

0

0

0

0

28

INCOME DUE TO MONETARY POSITION

(1,651,968)

(41)

(2,906,339)

(43)

42

RESTATEMENT OF UDIS'S LOSS

0

0

0

0

43

RESTATEMENT OF UDIS'S PROFIT

0

0

0

0

8

OTHER FINANCIAL OPERATIONS

0

0

0

0

29

OTHER INCOME AND EXPENSES, NET

0

0

0

0

30

LOSS (PROFIT) ON SALE OF OWN SHARES

0

0

0

0

31

LOSS (PROFIT) ON SALE OF SHORT-TERM INVESTMENTS

0

0

0

0

10

PROVISION FOR INCOME TAX AND EMPLOYEE PROFIT SHARING

12,840,068

100

13,858,332

100

32

INCOME TAX

9,643,360

75

11,062,011

80

33

DEFERRED INCOME TAX

611,511

5

(325,441)

(2)

34

EMPLOYEE PROFIT SHARING

2,585,197

20

3,121,762

23

35

DEFERRED EMPLOYEE PROFIT SHARING

0

0

0

0

(***)

THOUSAND DOLLARS

--- 

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FS-06

CONSOLIDATED STATEMENTS OF INCOME

- OTHER CONCEPTS -

(Thousand Pesos)

Final printing

---

REF

R

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

Amount

36

TOTAL REVENUES

116,847,958

117,240,675

37

NET INCOME

0

0

38

OPERATING REVENUES (**)

116,847,959

117,240,676

39

OPERATING INCOME (**)

39,538,491

41,161,439

40

NET INCOME OF MAJORITY INTEREST (**)

22,449,763

20,346,718

41

NET INCOME (**)

22,449,763

20,346,718

(**)

INFORMATION OF THE PAST TWELVE MONTHS

---

   MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FS-07

CONSOLIDATED STATEMENTS OF INCOME

- FROM OCTOBER 01 TO DECEMBER 31, 2003 & 2002 -

(Thousand Pesos)

Final printing

---

REF

RT

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

%

Amount

%

1

OPERATING REVENUES

30,182,760

100

30,540,703

100

2

COST OF SALES AND SERVICES

15,425,912

51

14,537,662

48

3

GROSS INCOME

14,756,848

49

16,003,041

52

4

OPERATING COST

4,233,820

14

4,812,213

16

5

OPERATING INCOME

10,523,028

35

11,190,828

37

6

COMPREHENSIVE FINANCING COST

1,225,830

4

833,679

3

7

INCOME AFTER COMPREHENSIVE FINANCING COST

9,297,198

31

10,357,149

34

8

OTHER FINANCIAL OPERATIONS

0

0

0

0

9

INCOME BEFORE INCOME TAX AND EMPLOYEE PROFIT SHARING

9,297,198

31

10,357,149

34

10

PROVISIONS FOR INCOME TAX AND EMPLOYEE PROFIT SHARING

3,673,663

12

4,753,238

16

11

INCOME AFTER INCOME TAX AND EMPLOYEE PROFIT SHARING

5,623,535

19

5,603,911

18

12

EQUITY IN RESULTS OF SUBSIDIARIES AND AFFILIATES

(38,905)

(0)

(109,716)

(0)

13

INCOME FROM CONTINUOUS OPERATIONS

5,584,630

19

5,494,195

18

14

INCOME FROM DISCONTINUOUS OPERATIONS, NET

0

0

0

0

15

NET INCOME BEFORE EXTRAORDINARY ITEMS

5,584,630

19

5,494,195

18

16

EXTRAORDINARY ITEMS NET EXPENDITURES (REVENUES)

0

0

0

0

17

NET EFFECT OF CHANGES IN ACCOUNTING PRINCIPLES

0

0

0

0

18

NET INCOME

5,584,630

19

5,494,195

18

19

MINORITY INTEREST

0

0

0

0

20

MAJORITY INTEREST

5,584,630

19

5,494,195

18

--- 

    MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FS-08

CONSOLIDATED STATEMENTS OF INCOME, FOURTH QUARTER

- BREAKDOWN OF MAIN CONCEPTS -

(Thousand Pesos)

Final printing

---

REF

RT

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

%

Amount

%

1

OPERATING REVENUES

30,182,760

100

30,540,703

100

21

DOMESTIC

29,237,205

97

30,224,048

99

22

FOREIGN

945,555

3

316,655

1

23

TRANSLATION INTO DOLLARS (***)

83,230

0

29,658

0

6

COMPREHENSIVE FINANCING COST

1,225,830

100

833,679

100

24

INTEREST EXPENSE

1,188,607

97

1,364,045

164

25

EXCHANGE LOSS

965,630

79

654,339

78

26

INTEREST INCOME

357,838

29

477,249

57

27

EXCHANGE GAIN

0

0

0

0

28

INCOME DUE TO MONETARY POSITION

(570,569)

(47)

(707,456)

(85)

42

RESTATEMENT OF UDI'S LOSS

0

0

0

0

43

RESTATEMENT OF UDI'S PROFIT

0

0

0

0

8

OTHER FINANCIAL OPERATIONS

0

0

0

0

29

OTHER INCOME AND EXPENSES, NET

0

0

0

0

30

LOSS (PROFIT) ON SALE OF OWN SHARES

0

0

0

0

31

LOSS (PROFIT) ON SALE OF SHORT-TERM INVESTMENTS

0

0

0

0

10

PROVISION FOR INCOME TAX AND EMPLOYEE PROFIT SHARING

3,673,663

100

4,753,238

100

32

INCOME TAX

1,914,511

52

2,611,472

55

33

DEFERRED INCOME TAX

961,956

26

1,361,647

29

34

EMPLOYEE PROFIT SHARING

797,196

22

780,119

16

35

DEFERRED EMPLOYEE PROFIT SHARING

0

0

0

0

(***)

THOUSANDS OF DOLLARS

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FS-09

CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION

- FROM JANUARY 01 TO DECEMBER 31, 2003 & 2002 -

(Thousand Pesos)

Final printing

---

REF

C

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

Amount

1

NET INCOME

22,449,763

20,346,718

2

ADD (DEDUCT) ITEMS NOT REQUIRING THE USE OF RESOURCES

21,483,641

20,399,001

3

CASH FLOW FROM NET INCOME FOR THE YEAR

43,933,404

40,745,719

4

CASH FLOW FROM CHANGES IN WORKING CAPITAL

(12,029,928)

(2,969,171)

5

RESOURCES PROVIDED BY OPERATING ACTIVITIES

31,903,476

37,776,548

6

CASH FLOW FROM OUTSIDE FINANCING

(87,616)

(7,885,128)

7

CASH FLOW FROM OWN FINANCING

(19,055,826)

(13,949,460)

8

RESOURCES PROVIDED BY FINANCING ACTIVITIES

(19,143,442)

(21,834,588)

9

RESOURCES PROVIDED BY INVESTMENT ACTIVITIES

(10,129,094)

(11,486,559)

10

NET INCREASE (DECREASE) IN CASH AND SHORT-TERM INVESTMENTS

2,630,940

4,455,401

11

CASH AND SHORT-TERM INVESTMENTS AT THE BEGINNING OF PERIOD

14,913,000

10,457,599

12

CASH AND SHORT-TERM INVESTMENTS AT THE END OF PERIOD

17,543,940

14,913,000

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FS-10

CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION

- BREAKDOWN OF MAIN CONCEPTS -

(Thousand Pesos)

Final printing

---

REF

C

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

Amount

2

ADD (DEDUCT) ITEMS NOT REQUIRING THE USE OF RESOURCES

21,483,641

20,399,001

13

DEPRECIATION AND AMORTIZATION FOR THE YEAR

20,693,439

20,346,493

14

+(-) NET INCREASE (DECREASE) IN PENSIONS FUND AND SENIORITY PREMIUMS

0

0

15

+(-) NET LOSS (PROFIT) IN MONEY EXCHANGE

0

0

16

+(-) NET LOSS (PROFIT) IN ASSETS AND LIABILITIES ACTUALIZATION

0

0

17

+(-) OTHER ITEMS

790,202

52,508

4

CASH FLOW FROM CHANGES IN WORKING CAPITAL

(12,029,928)

(2,969,171)

18

+(-) DECREASE (INCREASE) IN ACCOUNT RECEIVABLE

1,106,410

740,694

19

+(-) DECREASE (INCREASE) IN INVENTORIES

216,690

24,783

20

+(-) DECREASE (INCREASE) IN OTHER ACCOUNT RECEIVABLE AND OTHER ASSETS

(378,084)

711,844

21

+(-) INCREASE (DECREASE) IN SUPPLIERS ACCOUNT

0

0

22

+(-) INCREASE (DECREASE) IN OTHER LIABILITIES

(12,974,944)

(4,446,492)

6

CASH FLOW FROM OUTSIDE FINANCING

(87,616)

(7,885,128)

23

+ SHORT-TERM BANK FINANCING AND DEBT SECURITIES

35,460,990

16,693,576

24

+ LONG-TERM BANK FINANCING AND DEBT SECURITIES

0

175,318

25

+ DIVIDEND RECEIVED

0

0

26

+ OTHER FINANCING

1,862,227

3,109,473

27

(-) BANK FINANCING AMORTIZATION

(36,393,108)

(26,717,344)

28

(-) DEBT SECURITIES AMORTIZATION

(1,017,725)

(1,146,151)

29

(-) OTHER FINANCING AMORTIZATION

0

0

7

CASH FLOW FROM OWN FINANCING

(19,055,826)

(13,949,460)

30

+(-) INCREASE (DECREASE) IN CAPITAL STOCK

(1,100,850)

(630,046)

31

(-) DIVIDENS PAID

(7,622,589)

(7,497,895)

32

+ PREMIUM ON SALE OF SHARES

0

0

33

+ CONTRIBUTION FOR FUTURE CAPITAL INCREASES

(10,332,387)

(5,821,519)

9

RESOURCES PROVIDED BY INVESTMENT ACTIVITIES

(10,129,094)

(11,486,559)

34

+(-) DECREASE (INCREASE) IN STOCK INVESTMENTS OF PERMANENT NATURE

(37,742)

(82,196)

35

(-) ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT

(11,062,507)

(11,860,342)

36

(-) INCREASE IN CONSTRUCTIONS IN PROCESS

0

0

37

+ SALE OF OTHER PERMANENT INVESTMENTS

0

0

38

+ SALE OF TANGIBLE FIXED ASSETS

0

0

39

+(-) OTHER ITEMS

971,155

455,979

---

 

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FS-11

RATIOS

- CONSOLIDATED INFORMATION -

(Thousand Pesos)

Final printing

---

REF

P

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

YIELD

1

NET INCOME TO OPERATING REVENUES

19.21

%

17.35

%

2

NET INCOME TO STOCKHOLDERS' EQUITY (**)

28.19

%

31.99

%

3

NET INCOME TO TOTAL ASSETS ( **)

12.09

%

11.59

%

4

CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME

37.46

%

29.04

%

5

INCOME DUE TO MONETARY POSITION TO NET INCOME

7.36

%

14.28

%

ACTIVITY

6

OPERATING REVENUES TO TOTAL ASSETS (**)

0.63

times

0.67

times

7

OPERATING REVENUES TO FIXED ASSETS (**)

0.97

times

0.92

times

8

INVENTORIES ROTATION (**)

83.83

times

63.09

times

9

ACCOUNTS RECEIVABLE IN DAYS OF SALES

45

days

48

days

10

INTEREST PAID TO TOTAL LIABILITIES WITH COST (**)

8.12

%

9.14

%

LEVERAGE

11

TOTAL LIABILITIES TO TOTAL ASSETS

57.12

%

63.76

%

12

TOTAL LIABILITIES TO STOCKHOLDERS' EQUITY

1.33

times

1.76

times

13

FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES

56.48

%

53.16

%

14

LONG-TERM LIABILITIES TO FIXED ASSETS

40.13

%

45.08

%

15

OPERATING INCOME TO INTEREST EXPENSE

7.09

times

6.55

times

16

OPERATING REVENUES TO TOTAL LIABILITIES (**)

1.10

times

1.05

times

LIQUIDITY

17

CURRENT ASSETS TO CURRENT LIABILITIES

1.07

times

1.15

times

18

CURRENT ASSETS LESS INVENTORY TO CURRENT LIABILITIES

1.05

times

1.12

times

19

CURRENT ASSETS TO TOTAL LIABILITIES

0.38

times

0.34

times

20

AVAILABLE ASSETS TO CURRENT LIABILITIES

47.11

%

44.98

%

STATEMENT OF CHANGES IN FINANCIAL POSITION

21

CASH FLOW FROM NET INCOME TO OPERATING REVENUES

37.60

%

34.75

%

22

CASH FLOW FROM CHANGES IN WORKING CAPITAL TO OPERATING REVENUES

(10.30)

%

(2.53)

%

23

RESOURCES PROVIDED BY OPERATING ACTIVITIES TO INTEREST EXPENSES

5.72

times

6.01

times

24

OUTSIDE FINANCING TO RESOURCES PROVIDED BY FINANCING ACTIVITIES

0.46

%

36.11

%

25

OWN FINANCING TO RESOURCES PROVIDED BY FINANCING ACTIVITIES

99.54

%

63.89

%

26

ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT TO RESOURCES PROVIDED BY INVESTMENT ACTIVITIES

109.22

%

103.25

%

(**)

INFORMATION OF THE PAST TWELVE MONTHS

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FS-12

DATA PER SHARE

- CONSOLIDATED INFORMATION -

(Thousand Pesos)

Final printing

---

REF

D

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

Amount

1

BASIC INCOME PER ORDINARY SHARE (**)

1.81

$

1.59

$

2

BASIC INCOME PER PREFERENT SHARE (**)

0.00

$

0.00

$

3

INCOME PER DILUTED SHARE (**)

0.00

$

0.00

$

4

INCOME FROM CONTINUOUS OPERATIONS PER ORDINARY SHARE (**)

1.81

$

1.59

$

5

EFFECT OF DISCONTINUOUS OPERATIONS ON INCOME FROM CONTINUOS OPERATIONS PER ORDINARY SHARE (**)

0.00

$

0.00

$

6

EFFECT OF EXTRAORDINARY INCOME ON INCOME FROM CONTINOUS OPERATIONS PER ORDINARY SHARE (**)

0.00

$

0.00

$

7

EFFECT OF CHANGES IN ACCOUNTING PRINCIPLES ON INCOME FROM CONTINOUS OPERATIONS PER ORDINARY SHARE (**)

0.00

$

0.00

$

8

CARRYING VALUE PER SHARE

6.58

$

4.98

$

9

ACUMULATED CASH DIVIDEND PER SHARE

0.63

$

0.59

$

10

SHARE DIVIDENDS PER SHARE

0.00

shares

0.00

shares

11

MARKET PRICE TO CARRYING VALUE

2.71

times

3.30

times

12

MARKET PRICE TO BASIC INCOME PER ORDINARY SHARE (**)

9.84

times

10.34

times

13

MARKET PRICE TO BASIC INCOME PER PREFERENT SHARE (**)

0.00

times

0.00

times

(**)

INFORMATION OF THE PAST TWELVE MONTHS

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 1

CHIEF EXECUTIVE OFFICER REPORT

Consolidated

Final printing

---

Results

Operating

Financial

Operating results

Expansion of the telecommunications infrastructure

The investments that TELMEX carried out in 2003 totaled 995.7 million dollars and increased its installed capacity in an important manner, that is the case of installed lines that at the end of the year they reached 17 million 202 thousand lines. The installed Internet access services totaled 2 million 54 thousand services.

Local

At year-end 2003, TELMEX had 15,683,264 fixed lines in service, an annual increase of 8.6% with a net addition of 327,478 lines in the fourth quarter. This gain was 13.6% higher than the fourth quarter of 2002. During the year, 1,236,828 lines were added, 15.1% more than in 2002. Of total lines in service, 639,190 belong to Multifon Hogar, and this amount was three times higher than in 2002.

 

In the fourth quarter, penetration of digital services was 35.0%, 4.8 percentage points higher than the same quarter of 2002. Total lines with at least one digital service were 5,488,497.

 

Free voice mail was launched in the first quarter of 2003 and at year-end, there were 5,355,128 free voice mails in operation.

During the quarter, 6,668 million local calls were made, 2.8% higher than the same quarter of last year. For the full year, total call traffic increased 3.2%, totaling 26,494 million calls.

 

Interconnection traffic totaled 6,568 million minutes during the quarter, 12.8% more than the fourth quarter of 2002. For the full year, interconnection traffic totaled 25,790 million minutes, 19.1% higher than in 2002.

Long distance

In the fourth quarter, domestic long distance traffic totaled 3,763 million minutes, 0.9% higher than the same period of 2002. For the full year, domestic long distance minutes rose to 15,376 million, an annual increase of 7.2%.

 

International long distance traffic surged in the fourth quarter by totaling 1,406 million minutes an increase of 54.1% compared with the same period of the previous year. For the full year, international long distance minutes totaled 4,513 million, 8.3% lower than in 2002.

Data

In 2003, TELMEX had 1,452,338 Internet access accounts, an annual increase of 24.6%. The gain in accounts during the fourth quarter was 79,823. During the year, 286,937 Internet access accounts were added, an increase of 13.7% compared with 2002.

 

In the fourth quarter, 27,637 users were added to broadband service ADSL (Prodigy Infinitum), reaching 179,293 services at year-end 2003, 169.3% more than in 2002. Prodigy Infinitum accounts represented 12.4% of total accounts in service.

 

At December 31, 2003 Internet service penetration including broadband services, in respect to total lines in service was 9.3%, 1.2 percentage points more than the same period of the previous year.

 

In the corporate market of data transmission, TELMEX operated 2,291,111 line equivalents at the end of the fourth quarter; an increase of 13.4% compared with the same period of 2002. In the fourth quarter, the gain of line equivalents for data transmission rose to 113,582. The annual gain was of 270,319 line equivalents.

 

Consolidated Financial Results

Revenues

In the fourth quarter, total revenues were 30,183 million pesos, a decrease of 1.2%, compared with the same period of the previous year. For the full year, revenues totaled 116,848 million pesos, a decrease in real terms of 0.3% compared with 2002.

 

Costs and Expenses

Cash costs and expenses totaled 14,181 million pesos in the fourth quarter, a decrease of 3.7% compared with the same period of the previous year. For the full year, total cash costs and expenses rose to 56,615 million pesos, 1.6% more than the same period of 2002.

EBITDA and Operating Income

In the fourth quarter, EBITDA totaled 16,002 million pesos, 1.2% higher than the same period of 2002 and for the full year, EBITDA totaled 60,233 million pesos, 2.1% lower than the previous year. Operating income in the fourth quarter totaled 10,523 million pesos, 6.0% lower than the same period of the previous year and for the full year, operating income decreased 3.9% totaling 39,539 million pesos.

Comprehensive Financing Cost

Comprehensive financing cost was 1,226 million pesos during the fourth quarter due to an exchange loss of 970 million pesos resulting from the depreciation of the peso versus the US dollar of 2.8% during the quarter. Net Interest showed a charge of 829 million pesos and a gain of 573 million pesos was generated in the monetary position. Comprehensive financing cost for the full year totaled 4,070 million pesos, 39.2% lower than in 2002.

Net Income

Net income in the fourth quarter totaled 5,585 million pesos, 1.7% higher than the same period of 2002. For the full year, net income rose to 22,450 million pesos, an increase of 10.3% compared with 2002.

Repurchase of Shares

From October 1st to December 31st, TELMEX repurchased 181,245,600 of its own shares representing 1.5% of outstanding shares at September 30. TELMEX's earnings per share for the fourth quarter, based on the number of shares outstanding at period end, were 0.46 pesos and 1.85 pesos for the full year.

Debt

At December 31, 2003 total debt, short-term and long-term equaled 6.112 billion dollars a decrease of 4.7% from 6.413 billion dollars in December 2002. Without considering hedges, 87.3% of total debt was foreign-denominated and at the end of December, currency hedges covered 585 million dollars of the total debt. Additionally, interest rate swaps were carried out for 12,390 million pesos producing a new fixed rate of 9.2% and 1.1 billion dollars with a fixed rate of 2.4%, with average maturities of 6 years for swaps denominated in pesos and 5 years for swaps denominated in dollars. After the interest rate swaps, fixed rate debt represents 93.1% of total debt.

Local Service Business

Income statements

(Millions of Mexican pesos as of December 2003)

4Q2003

4Q2002

% Increase

12 months 2003

12 months 2002

% Increase

Operating revenues

 

 

 

 

 

 

Access, rent and measured service

$13,297

$13,761

(3.4)

$53,722

$55,080

(2.5)

Recovery of LADA special projects

505

460

9.8

1,816

1,801

0.8

LADA interconnection

968

878

10.3

3,492

3,496

(0.1)

Interconnection with operators

312

244

27.9

1,064

877

21.3

Interconnection with cellular

4,063

4,024

1.0

16,501

15,302

7.8

Other

2,297

2,428

(5.4)

8,646

8,483

1.9

Total

21,442

21,795

(1.6)

85,241

85,039

0.2

 

 

 

 

 

 

 

Operating costs and expenses

 

 

 

 

 

 

Cost of sales and services

4,836

5,075

(4.7)

18,737

18,631

0.6

Commercial, administrative and general

3,307

3,347

(1.2)

14,254

14,251

0.0

Interconnection

3,041

3,102

(2.0)

12,273

11,913

3.0

Depreciation and amortization

3,806

3,202

18.9

14,067

13,797

2.0

Total

14,990

14,726

1.8

59,331

58,592

1.3

 

 

 

 

 

 

 

Operating income

$6,452

$7,069

(8.7)

$25,910

$26,447

(2.0)

 

 

 

 

 

 

 

EBITDA

$10,258

$10,271

(0.1)

$39,977

$40,244

(0.7)

EBITDA Margin (%)

47.8

47.1

0.7

46.9

47.3

(0.4)

Operating Margin (%)

30.1

32.4

(2.3)

30.4

31.1

(0.7)

Comments on local financial results

The local service income statement, prepared in accordance with accounting separation principles, shows that revenues for the fourth quarter decreased 1.6% compared with the same period of the previous year. This result was due to the decrease of measured service rates in real terms, partially offset by higher interconnection revenues. For the full year, local revenues had an annual increase of 0.2% totaling 85,241 million pesos.

Operating costs and expenses increased 1.8% compared with the fourth quarter of 2002. This result was due to higher depreciation derived from the variation of the peso to the US dollar, partially offset by a decrease of 4.7% and 1.2% in cost of sales and services and commercial, administrative and general expenses, respectively. Additionally, costs related to interconnection decreased 2.0% in the fourth quarter. For the full year, total operating costs and expenses increased 1.3% totaling 59,331 million pesos

In the fourth quarter, operating income decreased 8.7% totaling 6,452 million pesos and EBITDA totaled 10,258 million pesos, similar to the amount registered in the same period of 2002. For the full year, operating income decreased 2.0% and EBITDA decreased 0.7%, totaling 25,910 and 39,977 million pesos, respectively.

 

Long distance business

Income statements

(Millions of Mexican pesos as of December 2003)

4Q2003

4Q2002

% Increase

12 months 2003

12 months 2002

% Increase

Operating revenues

 

 

 

 

 

 

Domestic long distance

$4,100

$4,483

(8.5)

$17,124

$17,412

(1.7)

International long distance

2,005

1,654

21.2

7,389

8,016

(7.8)

Total

6,105

6,137

(0.5)

24,513

25,428

(3.6)

 

 

 

 

 

 

 

Operating costs and expenses

 

 

 

 

 

 

Cost of sales and services

994

1,287

(22.8)

4,521

4,775

(5.3)

Commercial, administrative and general

1,391

1,480

(6.0)

5,027

5,069

(0.8)

Interconnection to the local network

906

837

8.2

3,320

3,342

(0.7)

Cost of LADA special projects

468

435

7.6

1,711

1,709

0.1

Depreciation and amortization

629

537

17.1

2,787

2,573

8.3

Total

4,388

4,576

(4.1)

17,366

17,468

(0.6)

 

 

 

 

 

 

 

Operating income

$1,717

$1,561

10.0

$7,147

$7,960

(10.2)

 

 

 

 

 

 

 

EBITDA

$2,346

$2,098

11.8

$9,934

$10,533

(5.7)

EBITDA Margin (%)

38.4

34.2

4.2

40.5

41.4

(0.9)

Operating Margin (%)

28.1

25.4

2.7

29.2

31.3

(2.1)

Comments on Long Distance Financial Results

The long distance income statement prepared in accordance with accounting separation principles shows that long distance revenues decreased 0.5% in the fourth quarter. The decrease in revenues was due the reduction of domestic and international long distance rates in real terms, partially offset by a recovery in international long distance traffic. For the full year, long distance revenues totaled 24,513 million pesos, a decrease of 3.6% compared with the previous year.

 

Operating costs and expenses in the fourth quarter decreased 4.1% compared with the same period of last year. This decrease is the result of the strict control on cost of sales and services that decreased 22.8% as well as in commercial, administrative and general expenses that also decreased 6.0%. Depreciation increased 17.1% because of the variation of the peso to the US dollar. For the full year, operating costs and expenses decreased 0.6%, totaling 17,366 million pesos.

 

Operating income increased 10.0% and EBITDA increased 11.8% in the fourth quarter totaling 1,717 and 2,346 million pesos, respectively. For the full year, operating income decreased 10.2% totaling 7,147 million pesos and EBITDA decreased 5.7% totaling 9,934 million pesos.

Definition

TELMEX, is a corporation made up of Telefonos de Mexico, S.A. de C.V., its subsidiaries and affiliates, provides telecommunications services throughout the country. In addition to other services, this includes operation of the nation's most complete local, domestic and international long distance networks. Additionally, TELMEX offers services like connectivity, Internet access, colocation, web hosting, production and distribution of telephone directories and interconnection services to other telecommunications operators

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 2

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2003 & 2002

(Thousand Pesos)

 

Consolidated

Final printing

---

S 12 PLANT, PROPERTY AND EQUIPMENT (NET)

 

Following, the breakdown is provided for the fixed assets included for the fourth quarter of 2003 by the specific index method and the NCPI, 5th document.

CONCEPT

INDEX

NCPI 5th. DOCUMENT

Investment

Ps. 300,040,549

Ps. 330,158,982

Depreciation

(179,823,252)

(206,976,722)

Construction in progress

444,695

539,532

Total

120,661,992

123,721,792

Results

20,497,566

22,496,378

 

 

S 18 DEFERRED ASSETS

 

At December 31, 2003, deferred assets rose to Ps. 668,768 that is comprised mainly by Ps. 586,933, that correspond to the acquisition of concessions to operate radio spectrum frequency bands to provide fixed wireless and mobile telephony services, that will be amortized in 20 years and the amount of Ps. 81,835 corresponds to goodwill that Teléfonos de México Group recognizes for share acquisitions of Teckmarketing, Aspel and Multicom; this goodwill is being amortized in 5 years.

 

 

S 19 OTHER ASSETS

 

This item rose to $ 23,755,248 and $ 8,525,629 at December 31, 2003 and 2002, respectively, and is comprised by the following:

2003 2002

 

Inventories Ps. 1,419,210 Ps. 1,348,558

Intangible assets D-3 0 7,177,071

Projected net Asset D-3 22,336,038 0

 

 

INVENTORIES: are used for the operation of the telephone plant and are valued by the average cost method and are updated based on the specific index method, without exceeding their market value.

 

 

INTANGIBLE ASSETS: derived from the application of Bulletin D-3 "Labor Obligations", issued by the Mexican Institute of Public Accounts (IMCP)

 

PROJECTED NET ASSET (D-3):

 

At December 31, 2003, the market value of the established fund exceeded the Accumulated Benefit Obligation (ABO) in $3,509,362 and, accordingly with Bulletin D-3 "Labor Obligations" issued by the Mexican Institute of Public Accountants, the recognition of an additional minimum liability and the related intangible asset and effect of labor obligations on stockholders' equity was eliminated.

 

As a result of the foregoing, the balance sheet at December 31, 2003 presents a projected net asset of $22,336,038.

 

 

S 23 AND S 28 BANK LOANS

 

In this item, supplier's credits are included in bank credits. The suplier's credits are reclassified to bank loans because in this document, sific/ics, long-term opening to suplier's does not exist.

 

S 24 AND S 29 STOCK MARKET LOANS

 

On June 11, 1999, The Company issued US $ 1,000 million of convertible senior debentures. The debentures are convertible to common stock at the option of the holders, at any time prior to their maturity into American Depositary Shares (ADSs), each representing 20 TELMEX "L" shares. The conversion price is U.S.$29.5762 per ADS.

Should any person or group (other than the present controlling stockholders) acquire 50% or more of the issuer's voting shares, the holders of the convertible debentures may ask TELMEX to repurchase the convertible debentures, for 100% of the principal amount plus unpaid accrued interest through the repurchase date.

 

The maturity date of the convertible debentures is June 15, 2004. The debentures bear 4.25% annual interest, payable bi-annually.

 

During the third and fourth quarter of 2003, Telmex made several purchases in the market of the convertible debentures for the amount of US$ 191.2 million.

 

On January 26, 2001, TELMEX issued senior notes for U.S.$1,000 million, maturing in 2006 and bearing 8.25% annual interest payable bi-annually. Additionally, on May 8, 2001 TELMEX issued additional senior notes for U.S.$500 million with the same characteristics.

 

During 2002, TELMEX made four placements of domestic senior notes ("Certificados Bursátiles") for a total of Ps. 3,200 million (Ps. 4,250 million in 2001, nominal value) under the Ps. 10,000 million program authorized by the National Banking and Securities Commission. The unissued balance under this program is Ps. 2,550 million.

On November 19, 2003 TELMEX issued a bond for U.S. $1,000 million due 2008, with an annual interest of 4.5%. Interest will be paid every six months.

 

During the year, credits for the amount of U.S $727 million were prepaid that includes the advanced payment made in June of a syndicated loan for U.S.$ 450 million that was due in December 2003.

 

 

S 26 OTHER CURRENT LIABILITIES

 

At December 31, 2003 and 2002, this item rose to Ps. 15,720,299 and Ps. 17,487,845 respectively and is comprised by the following concepts:

 

2003

2002

Accounts payable

Ps. 9,420,903

Ps. 11,082,062

Accrued liabilities

5,027,955

5,234,483

Deferred credits

1,271,441

1,171,300

 

 

Short-Term deferred credits consist of not accrued accounts receivable and advanced payments from customers and others.

 

S 29 STOCK MARKET LOANS (LONG-TERM)

 

This item rose to $ 35,540,000 and $34,553,854 at December 31 2003 and 2002, respectively and is comprised by the following:

 

2003 2002

Domestic Senior Notes Ps 7,450,000 Ps. 7,746,510

Bonds 28,090,000 16,084,406

Convertible Debt 0 10,722,938

 

 

S 31 DEFERRED CREDITS

 

At December 31, 2003 and 2002, this item rose to Ps. 20,454,195 and Ps. 13,495,846, respectively and corresponds to deferred taxes based on the requirements of Bulletin D-4, issued by the Mexican Institute of Public Accountants.

 

 

S 32 OTHER LIABILITIES

 

At December 31, 2002 this item rose to Ps. 7,996,452 and represents the liability for pensions and seniority premiums based on the requirements of Bulletin D-3 "Labor Obligations".

 

 

S 42 RETAINED EARNINGS

 

At December 31, 2003 and 2002, this item rose to Ps. 79,030,972 and Ps. 77,350,800, respectively and is comprised by the following concepts:

 

2003

2002

Legal reserve

Ps. 16,630,529

Ps. 15,904,800

Unappropriated earnings of prior years

62,400,443

61,446,000

 

On April 29, 2003 and 2002, stockholders meeting approved an increase of Ps. 7,601,474 (nominal value) and Ps. 4,549,888 (nominal value) respectively, in the total authorized nominal amount to be used by the Company to acquire its own shares, bringing the total amount to be used for this purpose to Ps. 10,000,000 (nominal value) respectively. At December 31, 2003 and 2002, the remaing authorized amount was Ps. 1,974,502 (nominal value) and Ps. 5,571,124 (nominal value), respectively.

 

From January to December 2003, the Company acquired 666.2 million Series "L" shares for Ps. 11,391,449 (historical cost of Ps. 11,174,197) and 3.9 million Series "A" shares for Ps. 67,233 (historical cost of Ps. 65,805).

 

From January to December 2002, the Company acquired 386.4 million Series "L" shares for Ps. 6,429,340 (historical cost of Ps. 6,031,506) and 1.4 million series "A" shares for Ps. 21,785 (historical cost of Ps. 20,748).

 

The Company's repurchased shares are applied to unappropiated retained earnings in the amount the corresponding shares purchased exceeded capital stock.

 

 

S 44 EXCESS (SHORTFALL) IN RESTATEMENT OF STOCKHOLDERS EQUITY

 

At December 31, 2003 and 2002, this item rose to Ps. (60,933,474) and Ps. (74,302,300), respectively and is comprised in the following manner:

 

2003

2002

Accumulated monetary position loss

Ps. (12,921,106)

Ps. (12,921,105)

Result from holding non-monetary assets

(48,012,368)

(61,381,195)

 

 

 

S 73 PENSION FUND AND SENIORITY PREMIUMS

 

The Company grants pensions and seniority premiums that are established in defined pension plans that cover substantially all employees.

In 1990, the Company established an irrevocable trust fund to cover the payment of these obligations. It adopted the policy of making annual contributions to the fund. These contributions are deductible for Mexican corporate income tax purposes.

 

The transition liability, past services and variations in assumptions are being amortized over a period of twelve years, that is the estimated average remaining working-life of the Company's employees.

 

This item presents the balance of the projected net asset for Ps. 22,336,038 and the current net liability for Ps. 7,996,452 at December 2003 and 2002, respectively.

 

 

COMPREHENSIVE INCOME

 

At December 31, 2003 and 2002 this item rose to Ps. 24,960,814 y Ps. 21,756,612, respectively by the application of Bulletin B-4 comprehensive income; and is comprised by the following:

2003

2002

Net income for the period

Ps.

22,449,763

Ps.

20,346,718

Result from holding non-monetary assets

4,129,481

10,375,473

Deferred income tax of the period

(1,618,430)

(1,073,337)

Effect of labor obligations

0

(7,892,242)

Comprehensive Income

24,960,814

21,756,612

 

 

NOTES TO CONSOLIDATED STATEMENTS OF INCOME

 

R 33 DEFERRED INCOME TAX

 

At December 31, 2003 and 2002, Telmex Group is recognizing Ps. 611,511 and Ps. (325,441), respectively for the application of the Bulletin D-4 "Accounting treatment of income tax, asset tax and employee profit sharing".

 

NOTES TO CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION

 

C 39 OTHER ITEMS

 

Includes inventories for operation of the telephone plant, as well as decreases of fixed assets.

 

RATIOS

 

P 08 INVENTORY TURNOVER RATE-COST

 

The SIFI/ICS system automatically calculates the inventory turnover rate-cost by dividing the total cost of goods and services (Ref. R 2) between the inventory of goods for sale (Ref. S 6), fact that affects the result.

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 3

SHARE INVESTMENTS

Consolidated

Final printing

---

COMPANY NAME

MAIN ACTIVITIES

NUMBER OF SHARES

OWNERSHIP

TOTAL AMOUNT

(Thousand Pesos)

ACQUISITION COST

PRESENT VALUE

%

SUBSIDIARIES

1

Consertel, S.A. de C.V.

Investments in all types of businesses

28,444,797,340

100

16,374,507

29,429,972

2

Cía. de Teléfonos y Bienes Raíces, S.A. de C.V.

Real estate acquisition & leasing

1,034,000,000

100

1,040,903

7,084,734

3

Alquiladora de Casas, S.A. de C.V.

Real estate acquisition & leasing

686,001,490

100

702,096

3,102,940

4

Construcciones y Canalizaciones, S.A. de C.V.

Construction & maint. of telephone network

28,369,000

100

28,636

508,276

5

Empresa de Limpieza Mexicana, S.A. de C.V.

Cleaning Service Company

50

100

49

57

6

Renta de Equipo, S.A. de C.V.

Equipment, vehicles & real estate leasing

769,595,000

100

769,645

836,790

7

Multicomunicación Integral, S.A. de C.V.

Trunking, installation & sales services

186,000,000

100

137,877

162,391

8

Teleconstructora, S.A. de C.V.

Construction & maint. of telephone network

19,400,000

100

19,397

114,979

9

Anuncios en Directorios, S.A. de C.V.

Sale of advertising space in yellow pages

1,081,750

100

1,240

66,972

10

Operadora Mercantil, S.A. de C.V.

Sales agent advertising space in yellow pages

50,000

100

54

1,343

11

Impulsora Mexicana de Telecomunicaciones, S.A.

Network projects

4,602,225

100

4,602

28,769

12

Fuerza y Clima, S.A de C.V.

Air conditioning installation & maint.

4,925,000

100

4,944

72,351

13

Teléfonos del Noroeste, S.A. de C.V.

Telecommunications services

110,000,000

100

75,279

876,843

14

Aerocomunicaciones, S.A. de C.V.

Aeronautic radiocom. mobile serv.

76,723,650

99.99

76,724

78,731

15

Tecmarketing, .S.A. de C.V.

Telemarketing services

6,850,000

100

138,972

186,097

16

Comertel Argos, S.A. de C.V.

Personnel services

6,000

100

13

2,702

17

Telmex International, Inc.

Holding Company in the U S A.

4

100

202,569

233,652

18

Instituto Tecnológico de Telefonos de Mexico, A.C

Trainning & research services

1,000

100

1

4

19

Buscatel, S.A. de C.V.

Paging services

111,645

100

142,445

255,912

20

Consorcio Red Uno, S.A. de C.V.

Design & integrated telecom. Services

167,691,377

100

360,533

545,985

21

Uninet, S.A. de C.V.

Data transmission services

5,647,430

100

564,743

1,003,396

22

Aerofrisco, S.A. de C.V.

Air Taxi services

3,113,528,600

100

310,871

536,435

23

Telnicx, S.A. de C.V.

Managment of yellow pages

4,865,360

100

6,853

9,176

24

Grupo Técnico de Administración, S.A. de C.V.

Management, consulting & org. Services

61,952

100

62

68

25

Teninver, S.A. de C.V.

Investments in all types of businesses

4,120,049,760

100

6,094,053

6,398,855

26

Telmex Internet Investments, L.L.C.

Investments in Internet companies

1,000

100

998,864

1,191,992

Others Subsidiaries ___ (Number of subsidiaries)

TOTAL INVESTMENT IN SUBSIDIARIES

28,055,932

52,729,422

ASSOCIATES

1

Technology and Internet , LLC

Internet services

500

50

974,989

217,691

2

Technology Fund I, LLC

Communication services

500

50

20,898

17,045

3

The Telvista Company

Telemarketing Services in USA

450

45

428,525

332,746

4

Centro Histórico de la Ciudad de México, SA de CV

Real estate services

80,020,000

21.77

80,020

94,904

5

TM & MS, LLC

Internet portal (T1MSN)

1

50

29,621

28,476

Others Associates ____ (Number of associates)

TOTAL INVESTMENT IN ASSOCIATES

1,534,053

690,862

OTHER PERMANENT INVESTMENTS

142,519

T O T A L

53,562,803

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 5

CREDITS BREAKDOWN

(Thousand Pesos)

Consolidated

Final printing

---

Credit

Type /

Amortization Date

Rate of Interest

Denominated in

Pesos

Amortization of Credits in Foreign Currency With National Entities (Thousands Of Pesos)

Amortization of Credits in Foreign Currency With Foreing Entities (Thousands Of Pesos)

Time Interval

Time Interval

Until 1

Year

More Than

1 Year

Current

Year

Until 1

Year

Until 2

Years

Until 3

Years

Until 4

Years

Until 5

Years or more

Current

Year

Until 1

Year

Until 2

Years

Until 3

Years

Until 4

Years

Until 5

Years or more

Institution

BANKS

FOREIGN TRADE

AB SVENKS EXPORTKREDIT (1)

14-12-2005

2.22

0

0

0

0

0

0

0

0

0

31,888

19,275

0

0

0

ABN AMRO BANK (1)

14-03-2008

2.65

0

0

0

0

0

0

0

0

0

1,011,955

1,011,955

1,011,955

779,209

64,206

BANAMEX AG. NY (1)

24-12-2006

2.03

0

0

0

0

0

0

0

0

0

8,003

4,039

4,039

0

0

BANCA SERFIN AG.NY (1)

24-12-2006

2.03

0

0

0

0

0

0

0

0

0

4,200

2,111

2,111

0

0

BBV ARGENTARIA S.A. (1)

22-12-2007

1.97

0

0

0

0

0

0

0

0

0

180,744

180,744

180,744

180,744

0

BANCO INTERNACIONAL, SAG (1)

24-12-2006

2.03

0

0

0

0

0

0

0

0

0

1,138

574

574

0

0

BANCO SANTANDER CH NY (1)

27-11-2008

1.42

0

0

0

0

0

0

0

0

0

28,691

28,691

28,691

28,691

3,172

BANK OF AMERICA (1)

14-04-2006

1.47

0

0

0

0

0

0

0

0

0

157,125

121,387

20,755

0

0

BANK OF AMERICA (1)

24-12-2006

2.03

0

0

0

0

0

0

0

0

0

50,246

25,359

25,359

0

0

BARCLAYS BANK, BRUSSELS (1)

31-12-2004

2.47

0

0

0

0

0

0

0

0

0

90,519

0

0

0

0

BARCLAYS BANK, BRUSSELS (1)

31-12-2005

2.22

0

0

0

0

0

0

0

0

0

97,319

97,319

0

0

0

CITIBANK, N.A. (1)

24-12-2006

2.03

0

0

0

0

0

0

0

0

0

158,708

79,736

79,736

0

0

DEXIA BANK (1)

31-12-2014

2.22

0

0

0

0

0

0

0

0

0

277,141

277,141

277,141

277,141

645,548

EXPORT DEVELOPMENT C. (1)

22-04-2008

1.77

0

0

0

0

0

0

0

0

0

430,339

366,365

287,617

34,926

4,469

GOLDMAN SACHS INT. (1)

24-12-2006

2.03

0

0

0

0

0

0

0

0

0

11,175

5,640

5,640

0

0

JAPAN BANK FOR INT. COOP. (1)

10-10-2011

2.31

0

0

0

0

0

0

0

0

0

0

408,726

408,726

408,726

1,634,903

JP MORGAN CHASE BANK (1) *

20-12-2004

1.92

0

0

0

0

0

0

0

0

0

5,056,200

0

0

0

0

KREDITANSTALT FUR W. (1)

15-12-2006

2.52

0

0

0

0

0

0

0

0

0

131,087

131,087

131,087

0

0

KREDITANSTALT FUR W. (1)

30-11-2004

1.72

0

0

0

0

0

0

0

0

0

2,486

0

0

0

0

NATEXIS BANQUE (2)

31-03-2022

2.00

0

0

0

0

0

0

0

0

0

20,966

20,966

20,966

20,966

222,116

NORDEA BANK FINLAND (1)

04-12-2007

2.47

0

0

0

0

0

0

0

0

0

358,107

358,107

189,567

17,546

0

NORDEA BANK FINLAND (1)

09-11-2004

2.72

0

0

0

0

0

0

0

0

0

104,495

0

0

0

0

NORDIC INVESTMENT BANK (1)

06-12-2006

2.32

0

0

0

0

0

0

0

0

0

112,360

112,360

112,360

0

0

SKANDINAVISKA ENSKILDA B. (1)

28-02-2010

2.65

0

0

0

0

0

0

0

0

0

79,140

79,140

79,140

79,140

90,900

SKANDINAVISKA ENSKILDA B. (1)

27-02-2004

2.22

0

0

0

0

0

0

0

0

0

22,055

0

0

0

0

SOCIETE GENERALE PARIS (1)

24-12-2006

2.03

0

0

0

0

0

0

0

0

0

8,804

4,443

4,443

0

0

SOCIETE GENERALE PARIS (1)

24-12-2006

2.03

0

0

0

0

0

0

0

0

0

8,679

4,380

4,380

0

0

SOCIETE GENERALE PARIS (1)

14-05-2007

1.97

0

0

0

0

0

0

0

0

0

49,833

21,478

866

15

0

THE BANK OF TOKYO-MITSUB (1)

28-12-2008

2.57

0

0

0

0

0

0

0

0

0

317,309

317,309

317,309

317,309

46,295

ARRENDADORA CITIBANK (1)

25-06-2004

2.22

0

0

0

128,977

0

0

0

0

0

0

0

0

0

0

BANAMEX, S.A. (1)

27-06-2005

2.22

0

0

0

211,750

109,826

0

0

0

0

0

0

0

0

0

BBVA BANCOMER (1)

10-10-2006

2.12

0

0

0

122,995

126,706

130,529

0

0

0

0

0

0

0

0

BBVA BANCOMER (1)

10-10-2006

2.22

0

0

0

231,602

247,400

0

0

0

0

0

0

0

0

0

BBVA BANCOMER (3)

27-01-2004

6.34

800,000

0

0

0

0

0

0

0

0

0

0

0

0

0

BANCO INTERNACIONAL (1)

24-12-2006

2.03

0

0

0

26,193

13,220

13,220

0

0

0

0

0

0

0

0

BBVA BANCOMER (3)

22-05-2004

6.37

500,000

0

0

0

0

0

0

0

0

0

0

0

0

0

CITIBANK MEXICO, S.A. (1)

26-06-2006

2.10

0

0

0

289,887

301,082

154,881

0

0

0

0

0

0

0

0

ARRENDADORA INBURSA (3)

28-02-2004

6.49

580

0

0

0

0

0

0

0

0

0

0

0

0

0

TESORERIA DE LA FEDERAC (1)

24-12-2006

2.03

0

0

0

51,335

25,869

25,869

0

0

0

0

0

0

0

0

TOTAL BANKS

1,300,580

0

0

1,062,740

824,102

324,499

0

0

0

8,810,712

3,678,333

3,193,208

2,144,413

2,711,608

STOCK EXCHANGE

LISTED IN THE MEXICAN STOCK EXCHANGE

UNSECURED DEBT

SENIOR NOTES DUE 2006 (2)

26-01-2006

8.25

0

0

0

0

0

0

0

0

0

0

0

16,854,000

0

0

SENIOR NOTES DUE 2008 (2)

19-11-2008

4.50

0

0

0

0

0

0

0

0

0

0

0

0

0

11,236,000

CONVERT. SECURITIES 2004 (2)

15-06-2004

4.25

0

0

0

0

0

0

0

0

0

9,087,969

0

0

0

0

CERT. BURSATIL TMX 02-2 (4)

10-02-2005

7.17

0

850,000

0

0

0

0

0

0

0

0

0

0

0

0

CERT. BURSATIL TMX 02 (4)

09-02-2007

7.54

0

1,650,000

0

0

0

0

0

0

0

0

0

0

0

0

CERT. BURS TMX 01, 02-3 Y 02-4 (2)

31-05-2012

11.05

0

1,700,000

0

0

0

0

0

0

0

0

0

0

0

0

CERT. BURS TMX 01-2 (4)

26-10-2007

7.64

0

3,250,000

0

0

0

0

0

0

0

0

0

0

0

0

TOTAL STOCK EXCHANGE

0

7,450,000

0

0

0

0

0

0

0

9,087,969

0

16,854,000

0

11,236,000

OTHER CURRENT LIABILITIES AND OTHER CREDITS

OTHER CURRENT LIABILITIES AND OTHER CREDITS (S-26)

15,720,299

0

0

0

0

0

0

0

0

0

0

0

0

0

TOTAL OTHER CURRENT LIABILITIES AND OTHER CREDITS

15,720,299

0

0

0

0

0

0

0

0

0

0

0

0

0

TOTAL

17,020,879

7,450,000

0

1,062,740

824,102

324,499

0

0

0

17,898,681

3,678,333

20,047,208

2,144,413

13,947,608

NOTES:

A.- Interest rates:

The credits breakown is presented with an integrated rate as follows:

  1. Libor plus margin
  2. Fixed Rate
  3. TIIE plus margin
  4. CETES plus margin

B.- The following rates were considered:

  1. Libor at 6 months in U S dollars is equivalent to 1.22 at December 31, 2003
  2. TIIE at 28 days is equivalent to 6.2889 at December 31, 2003
  3. CETES at 91 days is equivalent to 6.1700 at December 31, 2003
  4. CETES at 182 days is equivalent to 6.7400 at December 24, 2003

C.- * Syndicated Credit Administrative Agent

D.- The suppliers' Credits are reclasified to Bank Loans because in this document, SIFIC/ICS, Long-Term opening to Suppliers' does not exist.

E.- Liabilities in foreign currency were exchanged at the prevailing exchange rate at the end of the reporting period, which at December 31,2003 were as follows:

CURRENCY

AMOUNT

E.R.

DOLLAR (U.S.)

5,304,750

11.2360

EURO

22,835

14.1630

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 6

FOREIGN EXCHANGE MONETARY POSITION

(Thousand Pesos)

Consolidated

Final printing

--- 

TRADE BALANCE

DOLLARS

OTHER CURRENCIES

TOTAL

THOUSAND

DOLLARS

THOUSAND

PESOS

THOUSAND

DOLLARS

THOUSAND

PESOS

THOUSAND

PESOS

TOTAL ASSETS

551,354

6,195,011

0

0

6,195,011

LIABILITIES

5,304,751

59,604,172

28,783

323,412

59,927,584

SHORT-TERM LIABILITIES

1,684,922

18,931,778

2,638

29,643

18,961,421

LONG-TERM LIABILITIES

3,619,829

40,672,394

26,145

293,769

40,966,163

NET BALANCE

(4,753,397)

(53,409,161)

(28,783)

(323,412)

(53,732,573)

NOTES:

Assets and Liabilities in foreign currency were exchanged at the prevailing exchange rate at the end of the reporting period, which at December 31,2003 were as follows:

CURRENCY

AMOUNT

E.R.

DOLLAR (U.S.)

5,304,750

11.2360

EURO

22,835

14.1630

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 7

CALCULATION OF MONETARY POSITION

(Thousand Pesos)

Consolidated

Final printing

--- 

MONTH

MONETARY

ASSETS

MONETARY

LIABILITIES

(ASSET) LIABILITIES

MONETARY

POSITION

MONTHLY

INFLATION

MONTHLY

(EFFECT)

(ASSET) LIABILITIES

JANUARY

36,560,358

86,958,297

50,397,939

0.40

201,592

FEBRUARY

35,329,491

89,493,355

54,163,864

0.28

151,659

MARCH

37,691,382

89,235,609

51,544,227

0.63

324,729

APRIL

37,418,314

86,945,912

49,527,598

0.17

84,197

MAY

37,705,667

83,419,160

45,713,493

(0.32)

(146,283)

JUNE

37,988,424

82,321,067

44,332,643

0.08

35,466

JULY

31,060,277

75,854,678

44,794,401

0.14

62,712

AUGUST

33,700,783

77,431,029

43,730,246

0.30

131,191

SEPTEMBER

34,968,492

77,767,661

42,799,169

0.60

256,795

OCTOBER

34,771,986

76,613,962

41,841,976

0.37

154,815

NOVEMBER

39,732,459

78,138,672

38,406,213

0.83

318,772

DECEMBER

47,186,360

85,130,441

37,944,081

0.43

163,160

ACTUALIZATION :

0

0

0

0.00

31,643

CAPITALIZATION :

0

0

0

0.00

0

FOREIGN CORP. :

0

0

0

0.00

0

OTHER

0

0

0

0.00

(118,480)

TOTAL

1,651,968

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 8

BONDS AND/OR MEDIUM-TERM NOTES LISTED IN STOCK MARKET

Consolidated

Final printing

---

 

FINANCIAL COVENANTS UNDER ISSUANCE DEED AND/OR TITLE

DOES NOT APPLY

CURRENT SITUATION OF FINANCIAL COVENANTS

DOES NOT APPLY

BONDS AND/OR MEDIUM-TERM NOTES CERTIFICATE

DOES NOT APPLY

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 9

PLANTS, - COMMERCIAL, DISTRUBUTION AND/OR SERVICE CENTERS -

Consolidated

Final printing

---

PLANT OR CENTER

ECONOMIC ACTIVITY

PLANT CAPACITY

USAGE (%)

NOT AVAILABLE

0

0

NOTES

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 10

RAW MATERIALS

Consolidated

Final printing

---

DOMESTIC

MAIN SUPPLIERS

IMPORT

MAIN SUPPLIERS

DOM. SUBS.

PRODUCTION COST (%)

NOT AVAILABLE

0

0

NOTES :

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 11

DOMESTIC SALES - MAIN SERVICES -

(Thousand Pesos)

 

Consolidated

Final printing

---

MAIN PRODUCTS

TOTAL PRODUCTION

NET SALES

MARKET

SHARE

MAIN

VOLUME

AMOUNT

VOLUME

AMOUNT

(%)

TRADEMARKS

CUSTUMERS

LOCAL SERVICE

53,871,252

LONG DISTANCE SERVICE

37,230,068

INTERCONNECTION

17,565,458

OTHERS

5,856,619

TOTAL

114,523,397

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 11b

FOREIGN SALES - MAIN SERVICES -

(Thousand Pesos)

 

Consolidated

Final printing

---

MAIN PRODUCTS

TOTAL PRODUCTION

NET SALES

DESTINATION

MAIN

VOLUME

AMOUNT

VOLUME

AMOUNT

TRADEMARKS

CUSTUMERS

NET SETTLEMENT

2,324,562

TOTAL

2,324,562

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 13

PROJECT INFORMATION

(Thousand Pesos)

 

Consolidated

Final printing

---

ITEM

FOURTH

QUARTER

2003

USAGE

%

USED

AMOUNT

BUDGET

2003

USAGE

%

DATA

939,124

54.3

1,879,956

1,729,431

108.7

INTERNAL PLANT

871,557

43.2

1,681,906

2,016,619

83.4

OUTSIDE PLANT

1,252,782

33.6

2,775,211

3,733,730

74.3

TRANSMISSION NETWORK

1,138,193

47.3

2,266,220

2,405,183

94.2

SYSTEMS

363,676

48.0

445,135

757,636

58.8

OTHERS

1,412,548

163.9

2,014,079

861,894

233.7

TOTAL INVESTMENT

5,977,880

52.0

11,062,507

11,504,493

96.2

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 14

TRANSACTIONS IN FOREIGN CURRENCY AND EXCHANGE OF FINANCIAL STATEMENTS FROM FOREIGN OPERATIONS

Consolidated

Final printing

---

Basis of translation of financial statements of foreign subsidiaries

The financial statements of the subsidiaries located in the United States of America (U.S.A.) were exchanged into Mexican pesos in conformity with Mexican Accounting Principles Bulletin B-15, Transactions in Foreign Currency and Exchange of Financial Statements of Foreign Operations, issued by the Mexican Institute of Public Accountants (IMCP), as follows:

All balance sheet amounts, except for stockholders' equity, were translated at the prevailing exchange rate at year-end; stockholders' equity accounts were exchanged at the prevailing exchange rate at the time capital contributions were made and earnings were generated. The statement of income amounts were translated at the prevailing exchange rate at the end of the reporting period. The effect of inflation and changes in exchange rates were not material and are presented as part of the result from holding of non-monetary assets.

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

INTEGRATION OF PAID CAPITAL STOCK

Consolidated

Final printing

---

SERIAL

NOMINAL

VALUE

VALID

CUPON

NUMBER OF SHARES

CAPITAL STOCK

(Thousand Pesos)

FIXED

PORTION

PUBLIC

SUBSCRIPTION

VARIABLE

PORTION

MEXICAN

FIXED

VARIABLE

A

0.025

264,575,974

0

264,575,974

6,614

0

AA

0.025

4,136,480,585

0

4,136,480,585

0

103,412

0

L

0.025

7,708,148,693

0

7,708,148,693

192,704

0

TOTAL

0.025

12,109,205,252

0

4,136,480,585

7,972,724,667

302,730

0

TOTAL NUMBER OF SHARES REPRESENTING CAPITAL STOCK ON THE REPORTING DATE OF THE INFORMATION:

12,109,205,252

SHARES PROPORTION BY:

CPO'S :

T.VINC.:

ADRS's :

GDRS's :

ADS's :

GDS's :

REPURCHASE OF OWN SHARES

NUMBER OF

MARKET VALUE OF THE SHARE

SERIES

SHARES

AT REPURCHASE

AT QUARTER

A & L

670,153,231

18.00460

17.80570

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

GENERAL INFORMATION

Consolidated

Final printing

---

ISSUER GENERAL INFORMATION

COMPANY:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

INTERNET PAGE:

TELEFONOS DE MEXICO, S.A. DE C.V.

PARQUE VIA 198, COL. CUAUHTEMOC

06599

MEXICO, D.F.

52 22 12 12

 

 

ISSUER FISCAL INFORMATION

TAX PAYER FEDERAL ID:

FISCAL ADDRESS:

ZIP:

CITY:

TME 840315KT6

PARQUE VIA 198, COL. CUAUHTEMOC

06599

MEXICO, D.F.

PAYMENT RESPONSIBLE

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

C.P. EDUARDO ROSENDO GIRARD

PARQUE VIA 198 - 5TH FLOOR OFFICE 501, COL. CUAUHTEMOC

06599

MEXICO, D.F.

52 22 53 95

52 50 80 54

erosendo@telmex.com

 

OFFICERS INFORMATION

POSITION BMV:

POSITION:

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

CHAIRMAN OF THE BOARD

CHAIRMAN OF THE BOARD

ING. CARLOS SLIM HELU

AV. PASEO DE LAS PALMAS 750, COL. LOMAS DE CHAPULTEPEC

11000

MEXICO, D.F.

56 25 49 00

55 20 15 10

 

POSITION BMV:

POSITION:

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

CHIEF EXECUTIVE OFFICER

CHIEF EXECUTIVE OFFICER

ING. JAIME CHICO PARDO

PARQUE VIA 190 - 10TH. FLOOR OFFICE 1001, COL. CUAUHTEMOC

06599

MEXICO, D.F.

55 46 15 46 & 52 22 51 52

57 05 00 39

 

POSITION BMV:

POSITION:

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

CHIEF FINANCIAL OFFICER

CHIEF FINANCIAL OFFICER

ING. ADOLFO CEREZO PEREZ

PARQUE VIA 190 - 10TH. FLOOR OFFICE 1016, COL. CUAUHTEMOC

06599

MEXICO, D.F.

52 22 57 80 & 52 22 51 44

52 55 15 76

acerezo@telmex.com

POSITION BMV:

POSITION:

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

QUATERLY FINANCIAL INFORMATION RESPONSIBLE

COMPTROLLER

C.P. EDUARDO ROSENDO GIRARD

PARQUE VIA 198 - 5TH. FLOOR OFFICE 501, COL. CUAUHTEMOC

06599

MEXICO, D.F.

52 22 53 95

52 50 80 54

erosendo@telmex.com

POSITION BMV:

POSITION:

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

RESPONSIBLE FOR SENDING INFORMATION THROUGH EMISNET

SHAREHOLDER SERVICES MANAGER

LIC. MIGUEL ANGEL PINEDA CATALAN

PARQUE VIA 198 - 2ND. FLOOR OFFICE 202, COL. CUAUHTEMOC

06599

MEXICO, D.F.

52 22 53 22

55 46 21 11

mpineda@telmex.com

POSITION BMV:

POSITION:

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

LEGAL DIRECTOR

LEGAL DIRECTOR

LIC. SERGIO F. MEDINA NORIEGA

PARQUE VIA 190 - 2ND. FLOOR OFFICE 202, COL. CUAUHTEMOC

06599

MEXICO, D.F.

52 22 14 25 & 52 22 57 42

55 46 43 74

smedina@telmex.com

POSITION BMV:

POSITION:

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

SECRETARY OF BOARD OF DIRECTORS

SECRETARY OF BOARD OF DIRECTORS

LIC. SERGIO F. MEDINA NORIEGA

PARQUE VIA 190 - 2ND. FLOOR OFFICE 202, COL. CUAUHTEMOC

06599

MEXICO, D.F.

52 22 14 25 & 52 22 57 42

55 46 43 74

smedina@telmex.com

POSITION BMV:

POSITION:

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

RESPONSIBLE OF PROVIDE INFORMATION TO INVESTORS

INVESTORS RELATIONS MANAGER

LIC. ALEJANDRO MARTINEZ ALTAMIRANO

PARQUE VIA 198 - 7TH. FLOOR OFFICE 701, COL. CUAUHTEMOC

06599

MEXICO, D.F.

57 03 39 90

55 45 55 50

amaltami@telmex.com & ri@telmex.com

POSITION BMV:

POSITION:

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

RESPONSIBLE FOR SENDING FINANCIAL INFORMATION THROUGH EMISNET

COMPTROLLER

C.P. EDUARDO ROSENDO GIRARD

PARQUE VIA 198 - 5TH. FLOOR OFFICE 501, COL. CUAUHTEMOC

06599

MEXICO, D.F.

52 22 53 95

52 50 80 54

erosendo@telmex.com

POSITION BMV:

POSITION:

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

RESPONSIBLE FOR SENDING RELEVANT INFORMATION THROUGH EMISNET

INVESTORS RELATIONS MANAGER

LIC. ALEJANDRO MARTINEZ ALTAMIRANO

PARQUE VIA 198 - 7TH. FLOOR OFFICE 701, COL. CUAUHTEMOC

06599

MEXICO, D.F.

57 03 39 90

55 45 55 50

amaltami@telmex.com & ri@telmex.com

 ---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

BOARD OF DIRECTORS

Consolidated

Final printing

---

SERIES:

ALL

POSITION:

CHAIRMAN OF THE BOARD

NAME:

ING. CARLOS SLIM ELU

POSITION:

BOARD PROPIETORS

NAME:

SR. EMILIO AZCARRAGA JEAN

NAME:

ING. JAIME CHICO PARDO

NAME:

ING. ANTONIO COSIO ARIÑO

NAME:

SR. MARK E. ROYSE

NAME:

MTRA. AMPARO ESPINOSA RUGARCIA

NAME:

ING. ELMER FRANCO MACIAS

NAME:

C.P. RAFAEL KALACH MIZRAHI

NAME:

LIC. ANGEL LOSADA MORENO

NAME:

SRITA. JANET M. DUNCAN

NAME:

LIC. RICARDO MARTIN BRINGAS

NAME:

SR. ROMULO O FARRIL JR.:

NAME:

C.P. JUAN ANTONIO PEREZ SIMON

NAME:

LIC. FERNANDO SENDEROS MESTRE

NAME:

LIC. CARLOS SLIM DOMIT

NAME:

LIC. MARCO ANTONIO SLIM DOMIT

NAME:

SR. JAMES W. CALLAWAY

POSITION:

BOARD ALTERNATES

NAME:

SR. JAIME ALVERDE GOYA

NAME:

LIC. CARLOS BERNAL VEREA

NAME:

SR. JORGE A. CHAPA SALAZAR

NAME:

ING. ANTONIO COSIO PANDO

NAME:

C.P. ANTONIO DEL VALLE RUIZ

NAME:

LIC. ARTURO ELIAS AYUB

NAME:

SRA. ANGELES ESPINOSA YGLESIAS

NAME:

SR. JORGE ESTEVE CAMPDERA

NAME:

ING. AGUSTIN FRANCO MACIAS

NAME:

C.P. HUMBERTO GUTIERREZ OLVERA Z.

NAME:

LIC. JOSE KURI HARFUSH

NAME:

LIC. FEDERICO LAFFAN FANO

NAME:

C.P. FRANCISCO MEDINA CHAVEZ

NAME:

ING. BERNARDO QUINTANA ISAAC

NAME:

LIC. PATRICK SLIM DOMIT

NAME:

LIC. FERNANDO SOLANA MORALES

NAME:

LIC. EDUARDO VALDES ACRA

POSITION:

STATUTORY AUDITOR

NAME:

C.P. ALBERTO TIBURCIO CELORIO

POSITION:

ALTERNATE STATUTORY AUDITOR

NAME:

C.P. FERNANDO ESPINOSA LOPEZ

POSITION:

SECRETARY OF BOARD OF DIRECTORS

NAME:

LIC. SERGIO MEDINA NORIEGA

POSITION:

ASISTANT SECRETARY

NAME:

LIC. RAFAEL ROBLES MIAJA

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2003

TELÉFONOS DE MÉXICO, S.A. DE C.V.

DECLARATION BY THE COMPANY'S OFFICERS THAT ARE RESPONSIBLE FOR THE INFORMATION

Consolidated

Final printing

---

 DECLARAIOTN BY THE THE COMPANY'S OFFICERS THAT ARE RESPONSIBLE FOR THE INFORMATION

 

I (We) hereby swear, in the scope of my (our) functions, that I (we) prepared the financial information related with the Issuer's Quarter Report supplied herein, which, to my (our) knowledge, reasonably reflect the situation of the Issuer. I (We) also hereby swear that I (we) have no knowledge of any relevant information that has been omitted or falsely represented in this Quarter Report, or that such report contains information that could mislead the investors.

 

 

ING. ADOLFO CEREZO PEREZ

C.P. EDUARDO ROSENDO GIRARD

CHIEF FINANCIAL OFFICER

COMPTROLLER

 

 

 

MEXICO CITY, FEBRUARY 3, 2004.

---