#1axtel Investor's Presentation March 2020#2Agenda I. Axtel Strategy II. Financial Results III. Business Opportunities in Infrastructure and Services Units IV. Appendix Axtel - Confidential Information - For Recipient's Use Only axtel#31. Axtel Strategy 3 axtel#4B2B, infrastructure-based Company Service 49% O Infrastructure 51% EBITDA Enterprise 83% Government 17% 2019 Revenues & EBITDA US $664 mm & US$ 232 mm Ps. 12,784 mm & Ps. 4,466 mm Services Unit (Alestra) - Revenue Breakdown +83% Enterprise Others 50% Alestra 50% Fiber Network +40,600 km +22,000 km LD & 18,600 km Metro Axtel - Confidential Information - For Recipient's Use Only Infrastructure Unit - Revenue Breakdown 50% service business unit (Alestra) axtel#5Functional Separation: Capture Opportunities and Maximize Value INFRASTRUCTURE (Brand: TBD) ~50k customers Network Wholesale connectivity and • >18k passive infrastructure Connectivity customers SERVICES (Brand: "ALESTRA") Telecom Collaboration IT System Integration| O wwww 8-8 SAN DIEGO, CA Largest neutral operator TIJUA NOGALES OBREGO OS MOCHI EL PASO, TX CD, JUÁREZ IP Transit DALLAS, TX • • Value-added services Unified Video Comm. Conference Fiber (Dark & Lit) Expand expertise Managed Networks organically and/or inorganically: 머머 VPN Ethernet CHIHUAHUA SAN ANTONIO MONCLOVA LAREDO DELICIAS LAREDO MCALLEN, TX MONTERREY MATAMOROS REYNOSA Spectrum Wholesale Access - TORREON CULIAC SALTILLO DURANGO CD VICTORIA MAZATLÁN ZACATECAS AGUASCALIENTES TAMPICO TEP CON POZA RICA GUADALAJARA PACHUCA CELAY 40,600 km NALAPA VERACRUZ TOLUC 22,000 km (LD) TEHD C COATZACON CO 18,600 km (Metro) ACAPULC Fiber to the Tower Wholesale/Operators (Including Alestra Services) 1) Source: AV&CO (2019). Axtel - Confidential Information - For Recipient's Use Only Fiber to the Data Center LO 5 - Cybersecurity Digital Transformation Systems Integration DRP IT Infrastructure Cloud ? W LAN Hybrid cloud Wi Fi SD-WAN Standard Services g Internet Voice Migration Productivity applications Cybersecurity Perimeter 器 Internal Network Enterprise and Government axtel#6Non-strategic Asset Divestments - Focused Strategy & Indebtedness Reduction Tower Sale 142 towers sold to ATC in 2017; 12 additional towers in 2018 Proceeds: 61 Mdlls FTTx Mass Market Divestment 2 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 Axtel - Confidential Information - For Recipient's Use Only 1 3 Data Centers' Alliance with Equinix 6 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 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#7Debt Profile Debt Composition (as of Dec'19 - PF Data Center Transaction) Net Debt: US$ 614 M Acc. Pay. Alfa: US$ 11 M 173 24 22 617 500 102 Net Debt 2024 Notes Bancomext IFRS 16 (Dlls) Others Cash (Ps) Net Debt: Debt Composition (as of Dec'17) US$ 966 M Acc. Pay. Alfa: US$ 83 M 966 310 47 181 72 500 Leverage Evolution (Net Debt / EBITDA *) 4.0 3.7 3.6 3.6 3.4 3.2 2.9 (1) .(2) 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 Maturity Profile (in US $mm) Avg. life: 5.1 yrs 513 23 15 14 14 18 26 48 48 Net Debt 2024 Notes Bancomext Syndicated Others Cash (Dlls) (Ps) Facility (Ps) 2020 2021 2022 Bancomext 2023 2024 2025 Others 2026 2027 2028 2024 Notes Axtel - Confidential Information - For Recipient's Use Only axtel#8II. Financial Results 8 axtel#9Revenues & EBITDA Revenues (in MPs.) EBITDA (in MPs.) CAGR 14% CAGR(RR) +2% CAGR +1% 12,544 12,788 12,784 4,169 4,466 590 879 -10% (1) One-time 1,089 3,460 Recurring 12,199 11,456 11,905 2017 2018 Axtel - Confidential Information - For Recipient's Use Only 2019 +2% 840 225 2017 2018 2019 (1) Includes merger-related expenses of Ps. 429 million. Tower Sale axtel#10Revenues by business unit - 2018 vs 2019 Services (in MPs) Infrastructure (in MPs) -3% +7% 10,490 223 10,177 327 5,170 316 2,475 219 4,843 2,159 Gov't Government(1) -13% Enterprise Voice -12% Enterprise Others +4% 8,018 Enterprise 8,014 2018 2019 2018 2019 (1) Non-recurrent government segment revenues of Ps. 274 million in 2018 vs Ps. 148 in 2019. Axtel - Confidential Information - For Recipient's Use Only 10 axtel#11EBITDA by business unit - 2018 vs 2019 (in MPs) +7% (w/o tower sale) 463 4,393 225 4,466 Tower Sale 165 1,824 2,287 Infrastructure +25% (w/o tower sale) -7% +8% (w/o Voice) 2,344 Services 2,179 YTD18 Infrastructure Services YTD19 Axtel - Confidential Information - For Recipient's Use Only 11 axtel#12III. Business Opportunities in Infrastructure and Services Units 12 axtel#13Services Unit - ICT Market Growth and Revenue breakdown Growth in Corporate ICT Market Customer Base (in BPs., %) CAGR '19-'24E 2019-24E CAGR: 4.0% $102.4 $93.2 $85.9 $84.0 $76.9 $67.3 $60.3 IT Telecom - Managed Network Telecom Internet & Data 9.9% Financial Services 12% 3.0% Telecom Voice (3.3%) (14.7%) 2012A 2014A 2016A 2018A 2020E 2022E 2024E Axtel - Confidential Information - For Recipient's Use Only 13 Government 21% SME 32% Large Corporate 35% 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#14Infrastructure Unit - Sector growth and target market (Wholesale) Growth Infrastructure Market Wholesale Customer Base ✓ Growth concentrated in FTTT and FTTDC Growing segment Google Cloud - (CAGR of 28%) (1) demanding amazon webservices AT&T Wireless Carriers ALTAN REDES telcel Internet Giants, KIO KICNE Aurks Data Centers & Tower Operators ✓ Driven by mobile data consumption (4G), 5G deployment and growing IT outsourcing to DCs (cloud) high- bandwidth services to connect facilities and customers. facebook 1) Source: AV&CO (2019). Axtel - Confidential Information - For Recipient's Use Only Bestel MEGACABLE Totalplay Fixed National Carriers marcatel 14 movistar Fixed International Carriers BT Large buyers of fiber to the tower backhaul. 5G will be a large driver of growth. Large international verizon players present CenturyLink relevant cogent opportunities. axtel#15IV. Appendix: PF Financial Information 15 axtel#16Financial 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 Axtel - Confidential Information - For Recipient's Use Only 16 axtel#17axtel