2020 Annual Report slide image

2020 Annual Report

2020 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS The key assumptions used in the 2020 and 2019 value in use calculations are as follows: North West Pacific Southeast TCO Bajío Center Gulf Metrocarrier North West Pacific Southeast TCO Bajío Center Gulf Metrocarrier 2020 % of gross margin (12) Other intangible assets, net- An analysis of intangible assets is as follows: Growth rate Discount rate 53.0% 11.6% 8.60% 46.1% 10.7% 8.60% With defined life: 55.6% 9.5% 8.60% 49.2% 11.4% 8.60% Customer base (i) Accumulated amortization 51.6% 10.6% 8.60% 49.4% 10.4% 8.60% 45.1% 13.7% 8.60% With defined life: 49.8% 12.2% 8.60% 37.1% 10.0% 8.60% Trademarks and patents, net (ii) Total % of gross 2019 margin Growth rate Discount rate i) es 2020 2,028,815 (1,922,535) 106,280 18 106,298 MEGACABLE. 2019 2,028,815 (1,796,943) 231,872 34 231,906 Corresponds to the cost of acquisitions of portfolio/subscribers with a useful life of four years. The movements in the net customer base is as follows: 54.2% 8.6% 11.72% 47.5% 9.0% 11.72% 48.8% 7.6% 11.72% Net customer base: 50.3% 9.2% 11.72% 51.6% 8.0% 11.72% As at January 1, 2019 Additions (*) 50.4% 9.0% 11.72% 50.8% 9.5% 11.72% Customer base deletions Amortization 49.2% 7.7% 11.72% 32.0% 10.0% 11.72% As at December 31, 2019 Amortization $ 64,745 266,731 (4,623) (94,981) 231,872 (125,592) $ 106,280 These assumptions have been used in the analysis of each CGU within the operating segment. Management determined the budgeted gross margins based on past results and its expectations of market development. The weighted average growth rates used are consistent with the projections included in the industry reports. The discount rates used are pre-taxes and reflect the specific risks related to the relevant geographic areas. Sales volume is the weighted average rate of annual growth over a five-year forecast period. It is based on past performance and Management's expectations of market development. The sale price is the weighted average rate of annual growth over the five-year forecast. It is based on current industry trends and includes long-term inflation forecasts. As at December 31, 2020 (*) On May 1, 2019, through its subsidiary Telefonía por Cable, S.A. de C.V. as buyer, and Mega Cable, S.A. de C.V, the Group entered into an asset purchase and sale and assignment of rights agreement with Axtel, S.A.B. de C.V., for FTTH (Fiber To The Home) intangible assets and fixed assets valued at $1,150,000 plus value added tax where they purchased the customer list for $266,731 as an intangible asset and fixed assets. Amortization is calculated based on the straight-line method, considering the estimated life of the assets, which is four years. As at December 31, 2020 and 2019, it was recorded in the cost of services as $125,592 and $94,981, respectively. 61
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