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Investor Presentaiton

112 ANNUAL INTEGRATED REPORT 2021 | AXTEL Axtel, S. A. B. de C. V. and Subsidiaries (Subsidiary of Alfa, S. A. B. de C. V.) Consolidated Statements of Cash Flows For the years ended December 31, 2021, 2020 and 2019 Thousands of Mexican pesos 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES (Loss) income before income taxes Depreciation and amortization Exchange fluctuation loss (gain), net Allowance for doubtful accounts 3,179,364 277,595 Loss (gain) from sale of property, plant and equipment Interest income (2,600) 1,327 (24,909) $(1,149,147) $1,153,888 3,384,219 385,284 48,891 (2,022,963) 2019 $ (353,308) 3,578,541 (290,275) 8,874 5,046 (38,878) (60,253) Interest expense Current PTU 1,188,709 1,378,015 1,468,752 5,426 Impairment of goodwill 6,891 96,754 12,524 Impairment of investments 290,114 Others 36,114 Change in unrealized fair value and settlement of financial instruments 72,539 (105,809) 113.255 8,919 Changes in working capital: Trade and other accounts receivable, net 505,562 420,656 Inventories 20,049 Trade accounts payable, related parties and other accounts payable Employee benefits (677,132) 109,638 Paid PTU Deferred income (5,973) (30,002) 85,859 (528,915) 17,703 (11,847) (37,175) 120,012 131,289 (1,340,992) Operating cash flows from discontinued operations Subtotal (383,223) (29,633) Income taxes paid Net cash flows generated by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Acquisitions of property, plant and equipment Disposal of property, plant and equipment Acquisition of intangible assets Interest received Restricted cash 3,724,135 (432,580) 3,291,555 4,305,112 3,013,185 (97,274) 4,207,838 (56,481) 2,956,704 (1,290,512) (242,000) 24,909 258,891 (1,591,980) (1,691,354) 3,147,703 (553,826) (70,676) Investment in shares of Altán 38,877 (247,104) (64,568) 60,254 93,908 (69,959) Notes receivable (19,579) Investing cash flows from discontinued operations Net cash flows (used in) generated by investing activities (1,268,291) 729,102 1,150,000 (527,827) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds of current and non-current debt Payments of current and non-current debt Lease payments Payment of account payable to holding company Repurchase of shares Interest paid and other financial expenses Net cash flows used in financing activities Net (decrease) increase of cash and cash equivalents Effect of changes in exchange rates 1,485,012 (2,174,476) (1,411,749) (550,000) (332,412) (9,876) (1,084,878) (545,855) (713,972) (213,680) (1,200,297) (638,067) (1,237,640) (56,536) (1,338,736) (3,601,642) (1,578,378) 2,336,399 (2,600,541) (3,820,979) (1,392,102) Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 68,120 3,123,955 $1,613,697 (70,186) 857,742 $3,123,955 689 2,249,155 $ 857,742 01 Axtel, S. A. B. de C. V. and Subsidiaries (Subsidiary of Alfa, S. A. B. de C. V.) Notes to the Consolidated Financial Statements As of and for the years December 31, 2021, 2020 and 2019 Thousands of Mexican pesos, unless otherwise indicated GENERAL INFORMATION = 32,835 (9,178) Axtel, S. A. B. de C. V. and subsidiaries ("Axtel" or the "Company") was incorporated in Mexico as a capital stock company. Axtel's corporate offices are located at Avenida Munich No. 175 Colonia Cuauhtémoc, 66450 San Nicolás de los Garza, Nuevo León, Mexico. Axtel is a publicly owned corporation, whose shares are registered at the National Securities Registry and are traded at the Mexican Stock Exchange ("Bolsa Mexicana de Valores" in Spanish) through Certificates of Participation ("CPOS") issued under the Trust whose trustee is Nacional Financiera, S. N. C. The Company is subsidiary of Alfa, S. A. B. de C. V. ("Alfa"), direct holding and last company of the Group, which exercises control and holds 52.78% through the Trust Administration Agreement No. 2673 entered into with Banco Invex, S. A. Alfa has control over the Company's relevant activities. The Company is an Information and Communication Technology company that serves the enterprise, government and wholesale markets, through its business units Alestra (services) and Axtel Networks (infrastructure). The portfolio of the services unit for the business and government segments includes advanced solutions for managed networks, collaboration and information technology (IT) such as systems integration, cloud services, cybersecurity, among others. On the other hand, the connectivity solutions of the infrastructure unit for wholesale clients or operators (including the services unit) include last-mile access, IP transit, spectrum, fiber to The accompanying notes are an integral part of these consolidated financial statements.
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