ANNUAL INTEGRATED REPORT 2021 slide image

ANNUAL INTEGRATED REPORT 2021

89 ANNUAL INTEGRATED REPORT 2021 | AXTEL RISK AND OPPORTUNITY MANAGEMENT Axtel is exposed to risks and opportunities related to financial, regulatory, market, tax, social, and ethical issues, as well as those related to climate change and other industry-specific issues such as network neutrality, paid peering, zero rating, and other practices related to network reliability. All or any one of these may have adverse effects on our business, the results of our operations and financial conditions. The Compliance and Internal Control department, together with ALFA, performs an annual exercise to identify and manage strategic risks, determining their criticality and impact to establish a clear picture and take preventive actions in the event of possible repercussions for business performance. A risk compendium is then generated and submitted to the Chief Executive Officer, the Board of Directors, and the Audit and Corporate Practices Committee to define the follow-up and monitoring actions to be taken by each executive management. In addition, to maintain constant, timely, and adequate management of the risks and opportunities we are exposed to, we hold sessions with each executive officer to understand emerging issues from the perspective of their department for the development and implementation of measures for attention, follow-up and/or mitigation. OPERATING STRUCTURE* Subsidiary Country Holding percentage Axtel, S.A.B. de C.V. (Controladora) (2) Mexico Servicios Axtel, S.A. de C.V. (3) Mexico Alestra Innovación Digital, S. de R.L. de C.V.(2) Mexico 100% Axes Data, S.A. de C.V.(3) Mexico Contacto IP, S.A. de C.V. (3) Mexico Instalaciones y Contrataciones, S.A. de C.V. (3) Ingeniería de Soluciones Alestra, S.A. de C.V.(3) Alestra USA, Inc. (1) Mexico Mexico United States 100% S&C Constructores de Sistemas, S.A. de C.V. ("S&C") Mexico 100% Estrategias en Tecnología Corporativa, S.A. de C.V. ("Estratel") (2) Mexico 100% Servicios Alestra TI, S.A. de C.V.(2) Mexico 100% Alestra Procesamiento de Pagos, S.A. de C.V.(2)(3) Mexico 100% La Nave del Recuerdo, S.A. de C.V. Mexico 100% Contacto IP FTTH de México, S.A. de C.V. Mexico 100% Alestra Servicios Móviles, S.A. de C.V.(2) Mexico 100% Fomento de Educación Tecnológica, S.C.(4) Mexico 100% Axtel Networks, S.A. de C.V. Mexico 100% Servicios Axtel Networks, S.A. de C.V. Mexico 100% AXE Redes e Infraestructura, S.A. de C.V. Mexico 100% = *Note. In our Annual Integrated Report 2021 we included information on the performance of these companies, which are the same as those reported in our financial report. (1) Leasing of telecommunications equipment and infrastructure. (2) Telecommunications service provider. (3) At the Extraordinary General Shareholders' Meeting held on December 1, 2021, shareholders agreed to the merger of Servicios Axtel, S.A. de C.V., Axes Data, S.A. de C.V., Contacto IP, S.A. de C.V., Instalaciones y Contrataciones, S.A. de C.V., and Ingeniería de Soluciones Alestra, S.A. de C.V. (as merged companies) with Alestra Procesamiento de Pagos, S.A.B. de C.V. (as the merging company); this merger has no im- pact on the Company's consolidated operations. (4) Training and development services.
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