2020 Annual Report

2020 ANNUAL REPORT MESSAGE FROM THE CEO MEGACABLE. CORPORATE TELECOM SEGMENT In 2020, our Corporate Telecom segment recorded revenue totaling Ps. 3.602 billion, representing a year-on-year decrease of 8%. This was the result of the COVID-19 pandemic which, among other things, led to the postponement or cancellation of investments in new projects for this market, as well as the closure of a great amount of businesses, either temporarily or definitively, during the year. However, the public health crisis caused by COVID-19 also accelerated the adoption of technologies by companies to allow them to continue operating remotely, which is why our connectivity services became an essential part of their operations. In light of this outlook, in 2020 we focused on investing in and consolidating innovative businesses within the corporate sector. MetroCarrier, our connectivity service for the corporate market, recorded a 2% increase in 2020, while MCM also posted a 5% growth rate for the same period. For this market, we offer solutions that provide support to companies that are adopting new forms of remote working. Our integrated service portfolio facilitates business continuity without the need for people to be physically present at an office. We offer efficient and secure connectivity that is underpinned by equipment and connection stability in order to provide the same connection that employees use in their own offices (with access to office network resources, permanent VPN's, monitoring and redundant links). Hola Innovación, our division that specializes in developing and adopting information technologies to boost corporate communication, registered total revenue of Ps. 624 million, which represents a decrease of 41% as a result of the extraordinary results posted in 2019 and the economic and social impacts of the COVID-19 public health crisis. We are aware of the fact that as technology advances so do the risks posed, which is why guaranteeing the integrity of IT systems and the data they contain is of fundamental importance. Through Hola, we provide a Security Operations Center (SOC) that monitors the networks and data security 24 hours a day in order to ensure it is protected. Furthermore, we have forged strategic alliances with companies that include Cisco, Microsoft and Avaya, in order to offer collaborative software (Microsoft Teams, Cisco Webex, Avaya Spaces, Google Workspace) and ensure we provide an integrated service. In terms of infrastructure, our on-going technological deployment, in addition to new solutions and the improved quality and capacity of our network, has allowed us to position ourselves as the best option within the corporate segment. Furthermore, our submarine cable and the data center services we offer have allowed us to bolster our portfolio and offer companies quality and value-added services. Our investments in nodes and fiber have driven our growth within the market given the growing importance broadband now plays in both social and economic terms. We also continued rolling out improvements to our FTTH networks (Fiber To The Home), preparing the ground for the activation of our GPON network in twelve cities and increasing node capacity using HFC technology in the rest of the territories in which Megacable operates. Furthermore, We continued consolidating our investments in long-distance infrastructure throughout 2020. We built rings from Guadalajara to Puebla, that go through the northern part of the Bajío region (Jalisco, Guanajuato, Querétaro and the State of Mexico), and from Guadalajara to Puebla, which pass through the southern part of the Bajío region, which encompasses the states of Michoacán, Morelos and Mexico City. We also increased our border routes through an investment that enabled us to deploy proprietary fiber optics in order to increase the capacity and efficiency of our network. Through this strategy, each state has increased the numbers of highway optic fiber infrastructure kilometers. I would like to take this opportunity to thank all our employees, the Board of Directors and the senior management team for their commitment and enthusiasm. I would also like to express my gratitude to our shareholders, suppliers and customers for the trust that they have placed in us. Enrique Yamuni Robles CEO Manuel Urquijo Beltrán SECRETARY OF THE BOARD OF DIRECTORS 17

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