14 slides from Axtel Sab De Cv Cert.part.ord. Repr.7 Shs B's earnings presentation, 2020
Slide 1: Investors' Presentation 3Q20
Investors’ Presentation 3Q20 Axtel – Public Information
Slide 2: Agenda
Agenda I. Axtel Overview II. Financial Improvement III. Axtel’s Strategy Axtel – Public Information 2
Slide 3: I. Axtel Overview
I. Axtel Overview Axtel – Public Information 3
Slide 4: B2B, infrastructure-based Company
B2B, infrastructure-based Company EBITDA Government 17% of Total 21% Revenues Services Infrastructure 44% 56% Enterprise 79% LTM 3Q20* Revenues & EBITDA * PF Data Center business Services Unit (Alestra) – Revenue Breakdown US $601 mm & US$ 203 mm ~79% Enterprise Ps. 12,590 mm & Ps. 4,276 mm Alestra
Slide 5: Milestones - Delivering Results & Aligning to Industry Trends
Milestones - Delivering Results & Aligning to Industry Trends Combining positive performance, delivering on strategic projects and aligning with industry trends Non-essential Monetizations: Value Business Separation: Capture Positive Track-record Creation & Improved Capital Structure Opportunities a
Slide 6: Effects due to COVID-19
Effects due to COVID-19 • Increased demand for broadband; over 390 customers increased capacity: +Ps. 15M YTD. • Growth in cybersecurity, cloud and collaboration solutions. • Impact from tourism, entertainment and SMEs – increase in disconnections vs 2019. Commercial • Government segment: austerity
Slide 7: II. Financial Improvement
II. Financial Improvement Axtel – Public Information 7
Slide 8: YTD Revenues & EBITDA by business unit (as of 3Q20)
YTD Revenues & EBITDA by business unit (as of 3Q20) Revenues – total revenues increased 1% (in MPs) Services Infrastructure +8% -2% 7,527 199 200 7,351 264 3,765 3,501 1,502 249 326 1,452 Gov’t Recurrent Non- Voice Others -16% recurrent -26% +4% Enterprise 6,025 5,899 Government Enterprise -3% -2% Y
Slide 9: Debt & Liquidity Profile (as of 3Q20)
Debt & Liquidity Profile (as of 3Q20) Liquidity Leverage Evolution (Net Debt / EBITDA*) • Cash as of Sept. 30, 2020: US $163 M (includes US $13 M restricted cash) 4.0 3.7 o ~US $56 M from data center transaction 3.6 3.6 3.4 • Committed line facility: US $49 M drawn 3.2 2.9 • Drawn short-term bank fa
Slide 10: III. Axtel's Strategy
III. Axtel’s Strategy Strategy & Improved Capital Structure Axtel – Public Information 10
Slide 11: Strategy Focused on Maximizing Value
Strategy Focused on Maximizing Value Be the leading neutral fiber optic network operator in a Main connectivity Long-term solid Infrastructure high growth provider for mobile Digitalization to profitability vehicle Maximize Separation in 2 Unit market networks and data improve efficiency business un
Slide 12: Functional Separation: Capture Opportunities and Maximize Value
Functional Separation: Capture Opportunities and Maximize Value INFRASTRUCTURE (“AXTEL NETWORKS”) SERVICES (“ALESTRA”) • ~50 customers Network Telecom IT • Wholesale connectivity and • >18k passive infrastructure Connectivity Collaboration System Integration customers Largest neutral operator • Valu
Slide 13: Non-strategic Asset Divestments – Focused Strategy & Indebtedness Reduction
Non-strategic Asset Divestments – Focused Strategy & Indebtedness Reduction Tower Sale 1 3 Data Centers’ Alliance with Equinix 142 towers sold to ATC in 2017; 12 additional Valuation: 175 Mdlls (~157 Mdlls net proceeds*) towers in 2018 Includes assets and operations of 3 Data Centers ▪ Proceed
Slide 14: xtel
xtel