AMX

Business Context and Reporting Period

This Form 6-K filing by América Móvil, S.A.B. de C.V. (AMX), dated June 8, 2020, serves as a notice to shareholders regarding a cash and stock dividend. The filing details the terms for a dividend distribution to be paid on July 20, 2020, to holders of Series AA, Series A, and Series L shares as of the record date of July 15, 2020.

Key Financial Metrics

• Dividend Amount: Ps.0.19 (nineteen cents of one Mexican peso) per share.
• Outstanding Shares: 65,965,389,830 shares as of May 31, 2020.
• Treasury Shares Available: 5,097,800,440 Series L shares held by the company, with a maximum of 841,169,400 Series L shares potentially available for distribution depending on shareholder elections.
• Reference Price: Calculated based on the market price of Series L shares at the opening of trading on the business day immediately preceding the payment date (hypothetical example used Ps.14.90).
• Source of Funds: Net earnings account as of December 31, 2013, as adjusted.

Note: This filing does not provide current period revenue, profit, cash flow, margins, debt, or liquidity metrics. It is strictly a corporate action notice.

Material Changes and Shareholder Options

Shareholders have the option to receive the dividend in one of three forms:

1. Cash only.
2. Series L shares (currently held as treasury shares).
3. A combination of cash and Series L shares.

Shareholders must submit their election between July 16, 2020, and July 17, 2020, at 4:00 p.m. Mexico City time. Failure to elect results in automatic payment in cash. The filing notes that shareholders electing cash may experience dilution due to the release of additional Series L shares into circulation.

Guidance, Risks, and Tax Implications

• Taxation (Mexico): Because the earnings were accrued prior to December 31, 2013, the dividend is exempt from Mexican withholding tax under Transitory Article 9-XXX of the Mexican Income Tax Law. Reinvestment in Series L shares is deemed an automatic reinvestment, not a sale.
• Taxation (U.S.): U.S. holders will generally recognize taxable dividend income equal to the gross amount received (in USD equivalent). The dividend is not eligible for the dividends-received deduction for corporations.
• Risks: The filing includes standard forward-looking statement disclaimers. Actual results may differ from estimates. Unclaimed dividends are forfeited to AMX after five years.
• Unusual Items: The dividend is paid from a specific historical net earnings account (2013) rather than current year earnings.

Investor Verification Checklist

• Verify the Election Period (July 16–17, 2020) to ensure the desired payment method (cash vs. stock) is selected before the deadline.
• Confirm the Record Date (July 15, 2020) to ensure eligibility for the dividend.
• Review the Reference Price mechanism, as the number of Series L shares received depends on the market price on the day prior to payment.
• Check with custodians regarding any fees or expenses associated with the transaction, as these are borne by the shareholder.
• Consult tax advisors regarding U.S. federal income tax consequences, particularly for ADS holders.