18 slides from Axtel Sab De Cv Cert.part.ord. Repr.7 Shs B's investor presentation, November 2019
Slide 1: Investor's Presentation
Investor’s Presentation November 2019 Axtel – Confidential Information - For Recipient’s Use Only 1
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking information based on numerous variables and assumptions that are inherently uncertain. They involve judgments with respect to, among other things, future economic, competitive and financial market conditions and future business decisions, all
Slide 3: Agenda
Agenda I. Axtel Strategy II. Financial Results III. Strategic Projects IV. Functional Separation Axtel – Confidential Information - For Recipient’s Use Only 3
Slide 4: I. Axtel Strategy
I. Axtel Strategy Axtel – Confidential Information - For Recipient’s Use Only 4
Slide 5: B2B, infrastructure-based Company
B2B, infrastructure-based Company Wholesale Government 19% 17% Enterprise 64% LTM 3Q19 Rev. & EBITDA Revenue Breakdown Fiber Network US $662 mm & US$ 226 mm +83% Enterprise & Wholesale +40,000 km Ps. 12,852 mm & Ps. 4,376 mm • Leading Mexican ICT value-added managed solutions provider • Sustainable
Slide 6: Strategy Focused on Maximizing Value
Strategy Focused on Maximizing Value Maximize Mobility solutions infrastructure value through a multi- Non-strategic Maximize as a neutral operator platform to divestments Value operator at the complement ICT increasing demand services for data Provide world-class IT & Multi-cloud Strategic Alliance
Slide 7: II. Financial Results
II. Financial Results Axtel – Confidential Information - For Recipient’s Use Only 7
Slide 8: Revenues & EBITDA
Revenues & EBITDA Revenues EBITDA (in MPs.) (in MPs.) CAGR 4,168 12,544 12,788 +5% 2) 1) 3,460 11,588 590 3,245 1,089 -4% One-time 646 12,199 +6% 11,456 Recurring 10,943 840 224 Tower Sale 2016 2017 2018 2016 2017 2018 1) Includes merger-related expenses of Ps. 838 Million. 2) Includes merger-relate
Slide 9: Quarterly Revenues & EBITDA
Quarterly Revenues & EBITDA Revenues EBITDA (in MPs.) (in MPs.) CAGR 1,111 1,045 3,140 3,167 +2% 3,030 863 1) 56 164 -5% One-time 181 +3% 3,084 3,004 Recurring 2,848 170 Tower Sale - 3Q17 3Q18 3Q19 3Q17 3Q18 3Q19 1) Includes merger-related expenses of Ps.105 Million. Axtel – Confidential Information
Slide 10: Debt Profile
Debt Profile Debt Composition (as of September 30, 19) Leverage Evolution (Net Debt / EBITDA*) Debt: US$ 790 M 4.0 Acc. Pay. Alfa: US$ 36 M 3.7 Bancomext 3.6 3.6 21% 3.4 3.3 Ps Loan Facility 35% 2024 Notes USD 9% 63% 65% (1) (2) Others 2Q'17 4Q'17 2Q'18 3Q'18 4Q'18 3Q'19 7% (1) With normalized cash
Slide 11: III. Strategic Projects
III. Strategic Projects Axtel – Confidential Information - For Recipient’s Use Only 11
Slide 12: Non-strategic asset divestments – Focused Strategy & Indebtedness Reduction
Non-strategic asset divestments – Focused Strategy & Indebtedness Reduction Pending regulatory approval Tower Sale 1 3 Data Centers’ Alliance with Equinix 142 towers sold to ATC in 2017; 12 additional Valuation: 175 Mdlls towers in 2018 Includes assets and operations of 3 Data Centers ▪ Procee
Slide 13: IV. Functional Separation
IV. Functional Separation Axtel – Confidential Information - For Recipient’s Use Only 13
Slide 14: Functional Separation: Capture Opportunities and Maximize Value
Functional Separation: Capture Opportunities and Maximize Value AXTEL INFRASTRUCTURE (Brand: TBD) SERVICES (Brand: “ALESTRA”) Network Telecom IT Connectivity Focused on Collaboration System Integration High-growth market value-added in Mexico: services, currently with more than Unified DRP business
Slide 15: Revenues YTD '19 vs '18
Revenues YTD ‘19 vs ‘18 (in MPs) 1% 11,943 12,016 169 96 9,406 9,342 2,601 2,610 4,320 +4% -1% 4,489 Infrastructure Services 7,623 7,527 YTD18 Elim. ProForma Infrastructure Services ProForma Elim. YTD19 YTD18 YTD19 Axtel – Confidential Information - For Recipient’s Use Only 15
Slide 16: Services Revenues YTD Sept'19 vs YTD Sept'18
Services Revenues YTD Sept’19 vs YTD Sept’18 (in MPs) -1% 7,623 297 7,527 259 134 Enterprise Enterprise Government Voice Others -15% 7,230 -10% +7% Revenues Revenues YTD Sept’18 YTD Sept’19 Axtel – Confidential Information - For Recipient’s Use Only 16
Slide 17: EBITDA YTD '19 vs '18
EBITDA YTD ‘19 vs ‘18 (in MPs) +7% (w/o tower sale) -1% 3,296 343 3,279 Tower Sale 225 136 +8% -8% Infrastructure 1,352 1,695 +25% (1) +8% (2) (w/o Tower Sale) (w/o Voice) 1,719 1,584 Services YTD18 Infrastructure Services YTD19 (1) Without IFRS16 benefit = +10% (2) Voice -$270M Axtel – Confidential
Slide 18: Axtel – Confidential Information - For Recipient’s Use Only
Axtel – Confidential Information - For Recipient’s Use Only 18