Axtel Sab De Cv Cert.part.ord. Repr.7 Shs B · BMV:AXTEL/CPO
Axtel Sab De Cv Cert.part.ord. Repr.7 Shs B — Axtel — Q4 2023 Earnings Presentation
16 slides from Axtel Sab De Cv Cert.part.ord. Repr.7 Shs B's earnings presentation, February 2024
Slide 1: Fourth Quarter 2023 Corporate Presentation
FOURTH QUARTER 2023 CORPORATE PRESENTATION
Slide 2: I. Axtel at a Glance
I. Axtel at a Glance II. Financial Performance III. Spin-off Axtel – Public Information 2
Slide 3: B2B Company; Moving Towards Specialization
B2B Company; Moving Towards Specialization WHAT WE DO: • Facilitate digital transformation through the most advanced Telecom, IT, Cybersecurity and Government Wholesale Mobility solutions. 11% 16% • Provide connectivity and infrastructure services (largest neutral fiber network in Mexico). Enterpris
Slide 4: Wholesale (Axnet), Enterprise & Government (Alestra) Segments
Wholesale (Axnet), Enterprise & Government (Alestra) Segments Mobility Cybersecurity Telecom IT Last Mile Long Distance Access Transport Multi-operator MVNO Digital Perimeter Endpoint Connectivity Mobile Service Solutions Transformation Fiber to Fiber to the the Tower Data Center Dedicated Internet
Slide 5: Our Network & Capabilities
Our Network & Capabilities Northwest (202 IPs) ~50,800 km Optical Fiber Network Northeast (295 IPs) 27,000 km – 76 cities Metropolitan Rings 23,800 km Long Distance Network +260,000 Business Locations Covered ~1,100 Network Points of Presence 5 West (228 IPs) International border crossings Southeast
Slide 6: Strategic Evolution and Technological Milestones
Strategic Evolution MISSION: Enable companies to be more productive through digitalization Strategic Milestones Creation of two Business Lines Acquisition Business Units Specialized Acquisition (’15) commercial Alestra Sale (‘13) Joint Venture mass-market model Alestra/ FTTH business Spin-off Sale T
Slide 7: Management with 20+ years average experience in ICT Industry
Management with 20+ years average experience in Information and Communication Technology (ICT) Industry Armando de la Peña Sergio Antonio Bravo García Carlos Buchanan Andrés Cordovez CEO Executive Director Executive Director Executive Director Axtel Government Segment Human Capital Infrastructure an
Slide 8: Operating and Commercial Model – focus on specialization
Operating and Commercial Model – focus on specialization Consolidate Business Lines comprehensive model; greater proximity and specialization Enterprise & Government Commercial • Agile and collaborative organization Business Line • Optimize Solutions Portfolio e.g. Cybersecurity Product • Commercial
Slide 9: Business Lines – Specialization and P&L accountability
Business Lines – Specialization and P&L accountability Strategies oriented to profitable growth Up Cross Sell Sell Potential Customer Strategies / Commercial Tactics • Business Line • Focus on strategic accounts • Region / Segment • Change in vision (potential vs Alestra’s market share) • Verticals
Slide 10: Sustainability Model Pillars
Sustainability Model • In 2020, Axtel began decommissioning obsolete equipment Energy & Emissions • In 2023, 54% of its energy consumption came from clean S&P Global - CSA Sustainability Model Pillars sources. (51% in 2022) 58 56 52 Diversity and 38 Inclusion • In 2022 & 2023, women represented 26%
Slide 11: II. Financial Performance
I. Axtel at a Glance II. Financial Performance III. Spin-off Axtel – Public Information 11
Slide 12: Revenues & Comparable EBITDA (FY 2023)
Revenues & Comparable EBITDA (FY 2023) (in MXN $M) ENTERPRISE: Revenues – total revenues increased 5% • Driven by cloud, 498 10,956 cybersecurity and 10,480 222 managed networks 143 1,790 Wholesale 1,933 101 services. 1,230 1,007 Gov’t GOVERNMENT: Voice Others • Achieved renewal of -13% +7% Enterpri
Slide 13: Debt Profile & FCF
Debt Profile & FCF Capital Structure Debt Composition (as of 2023, in US$M) Net Debt / EBITDA = 2.9x • In 2023, refinancing of all debt – extending maturity profile to 4.5 yrs ‒ Refinancing of Ps. 3,026M Bancomext Loan – 10-year term 60 11 7 553 100 ‒ 2024 Notes refinanced in July: 179 o US $268M, 5
Slide 14: III. Spin-off
I. Axtel at a Glance II. Financial Performance III. Spin-off Axtel – Public Information 14
Slide 15: Axtel: Second independent ALFA subsidiary
Axtel: Second independent ALFA subsidiary • Ratio CTAXTEL to AXTELCPO = 0.302. • Spin-off represents opportunity for Axtel to continue driving its organic and strategic initiatives independently. • Board of Directors, Executive Committees, management team and corporate governance remained unchanged.
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