Axtel – Confidential Information - For Recipient’s Use Only 1

Investor’s

Presentation

March 2020

Axtel – Confidential Information - For Recipient’s Use Only 2

Agenda

I. Axtel Strategy

II. Financial Results

III. Business Opportunities in Infrastructure and Services Units

IV. Appendix

Axtel – Confidential Information - For Recipient’s Use Only 33

I. Axtel Strategy

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Infrastructure51%

Service49%

B2B, infrastructure-based Company

+83% Enterprise

Services Unit (Alestra) – Revenue Breakdown

US $664 mm & US$ 232 mm

Ps. 12,784 mm & Ps. 4,466 mm

2019 Revenues & EBITDA

+40,600 km

+22,000 km LD & 18,600 km Metro

Fiber Network

50% service business unit (Alestra)

Infrastructure Unit – Revenue Breakdown

EBITDA Government17%

Enterprise83%

Alestra50%

Others50%

Axtel – Confidential Information - For Recipient’s Use Only 5

Functional Separation: Capture Opportunities and Maximize Value

SERVICES (Brand: “ALESTRA”) INFRASTRUCTURE (Brand: TBD)

Telecom ITNetwork

Connectivity Collaboration

Managed Networks

VPN LAN Ethernet

Unified Comm.

System Integration

Cloud

DRP IT Infrastructure

Hybrid cloud

Cybersecurity

PerimeterInternalNetwork

Enterprise and Government

IP Transit

Fiber(Dark & Lit)

Spectrum WholesaleAccess

Fiber tothe Tower

Fiber to theData Center

1) Source: AV&CO (2019).

• >18k

customers

• Value-added

services

Expand expertise

organically and/or

inorganically:

- Cybersecurity

- Digital

Transformation

- Systems

Integration

• ~50k customers

• Wholesale connectivity and

passive infrastructure

Wholesale / Operators

(Including Alestra Services)

VideoConference

Wi Fi SD-WANProductivityapplications

40,600 km

22,000 km (LD)

18,600 km (Metro)

Largest neutral operator

Standard Services

VoiceInternet

Migration

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Sale to Televisa (~80%) in December 2018 and

Megacable (~20%) in May 2019

▪ Km: 5,800 km of FTTx (fiber-to-the-home or business)

▪ Proceeds: 5,863 MPs

▪ Customers: ~280,000

Tower Sale 1

Non-strategic Asset Divestments – Focused Strategy &

Indebtedness Reduction

FTTx Mass Market Divestment 2

Data Centers’ Alliance with Equinix3

Valuation: 175 Mdlls

Includes assets and operations of 3 Data Centers

- 3 large-scale colocation customers

Joint-Marketing agreement:

- Develop marketing opportunities for IT Solutions, data

center and network services; exchange sales leads of the

enterprise segment and joint participation in government

segment projects

142 towers sold to ATC in 2017; 12 additional

towers in 2018

▪ Proceeds: 61 Mdlls

Apodaca

Querétaro

(1) Exclude ~5 Mdlls of related expenses and 13 Mdlls of funds held in

escrow account, to be released in 12 months

Axtel – Confidential Information - For Recipient’s Use Only 7

23 15 14 14

513

18 26 48 48

2020 2021 2022 2023 2024 2025 2026 2027 2028

Bancomext Others 2024 Notes

Debt Profile

Debt Composition (as of Dec’19 – PF Data Center Transaction) Leverage Evolution (Net Debt / EBITDA*)

Maturity Profile

Net Debt: US$ 614 M

Acc. Pay. Alfa: US$ 11 M4.0

3.6 3.6 3.7

3.4 3.2

2.9

2Q'17 4Q'17 2Q'18 3Q'18 4Q'18 4Q'19 4Q'19 PF

(1) With normalized cash balance. (2) PF Data Center transaction

* Without tower sale benefit nor merger-related expenses

(1) (2)

Avg. life: 5.1 yrs

(in US $mm)Net Debt: US$ 966 M

Acc. Pay. Alfa: US$ 83 M

617500

173 24 22

102

Net Debt 2024 Notes(Dlls)

Bancomext(Ps)

IFRS 16 Others Cash

Debt Composition (as of Dec’17)

966

500

181310 47

72

Net Debt 2024 Notes(Dlls)

Bancomext(Ps)

SyndicatedFacility (Ps)

Others Cash

Axtel – Confidential Information - For Recipient’s Use Only 88

II. Financial Results

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840 225

2017 2018 2019

3,460

4,169 4,466

11,456 12,199 11,905

1,089 590 879

12,544 12,788 12,784

2017 2018 2019

Revenues

(in MPs.)

EBITDA

(in MPs.)

CAGR

Tower Sale

Recurring

One-time-10%

+2%

+1%

(1) Includes merger-related expenses of Ps.429 million.

(1)

Revenues & EBITDA

Axtel – Confidential Information - For Recipient’s Use Only 10

Revenues by business unit – 2018 vs 2019

4,843 5,170

327

+7%

Infrastructure(in MPs)

2018 2019

(1) Non-recurrent government segment revenues of Ps. 274 million in 2018 vs Ps. 148 in 2019.

8,014 8,018

2,475

9,954

2,159

223

316 219

Services(in MPs)

-3%

Government(1)

-13%

Enterprise

Voice

-12%

Enterprise

Others

+4%

2018 2019

10,49010,177

Enterprise

Gov’t

Axtel – Confidential Information - For Recipient’s Use Only 11

EBITDA by business unit – 2018 vs 2019

2,344 2,179

1,824 2,287

225

463

165

YTD18 Infrastructure Services YTD19

+7% (w/o tower sale)(in MPs)

+25%

(w/o tower sale)

-7%

+8%

(w/o Voice)

4,393 4,466

Infrastructure

Services

Tower Sale

Axtel – Confidential Information - For Recipient’s Use Only 1212

III. Business Opportunities in

Infrastructure and Services Units

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Services Unit – ICT Market Growth and Revenue breakdown

$60.3

$67.3

$76.9

$84.0 $85.9

$93.2

$102.4

2012A 2014A 2016A 2018A 2020E 2022E 2024E

Growth in Corporate ICT Market

Telecom - Voice

Telecom – Internet & Data

Telecom – Managed Network

IT

9.9%

3.0%

(3.3%)

(14.7%)

CAGR

’19-’24E

(in BPs., %)

Large Corporate

35%

SME32%

Financial Services

12%

Government21%

Customer Base

18,000+ Total Customers

- 21 of top 35 customers have average tenure with

Alestra of more than 8 years

- 90% of the most relevant Financial Institutions in

Mexico are Alestra’s customers

Axtel – Confidential Information - For Recipient’s Use Only 14

✓ Growth concentrated in

FTTT and FTTDC

- (CAGR of 28%) (1)

✓ Driven by mobile data

consumption (4G), 5G

deployment and growing

IT outsourcing to DCs

(cloud)

Infrastructure Unit – Sector growth and target market (Wholesale)

Wireless Carriers

Fixed National Carriers

Fixed International

Carriers

Internet Giants,

Data Centers

& Tower

Operators

Growing

segment

demanding

high-

bandwidth

services to

connect

facilities and

customers.

Large

international

players

present

relevant

opportunities.

Large

buyers of

fiber to the

tower

backhaul.

5G will be a

large driver

of growth.

1) Source: AV&CO (2019).

Growth Infrastructure Market Wholesale Customer Base

Axtel – Confidential Information - For Recipient’s Use Only 1515

IV. Appendix:

PF Financial Information

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Financial Summary – Proforma for Data Center Transaction

(in MPs) 2019 Adjustment 2019 PF

Revenue 12,784 (255) 12,528

Costs (3,353) (131) (3,484)

Expense (5,015) 157 (4,858)

Other income (expense) 50 - 50

EBITDA 4,466 (229) 4,236

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