ANNUAL INTEGRATED REPORT 2021
ANNUAL INTEGRATED REPORT 2021 | AXTEL
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This committee supports both the CEO and the Board's Chairman of
the Company. All new derivative transactions, which the Company
proposes to enter into, as well as the renewal or cancellation of
derivative arrangements, must be approved by both the Company and
Alfa's CEO, in accordance to the following schedule of authorizations:
Chief Executive Officer of Alfa
Maximum Possible
Loss US$1 million
Individual
transaction
Annual cumulative
transactions
1
5
Risk Management Committee of Alfa
Finance Committee
30
100
100
300
Board of Directors of Alfa
>100
>300
Axtel monitors capital based on a leverage ratio. This percentage is
calculated by dividing total liabilities by total equity.
The financial ratio of total liabilities / total equity is 5.96, 5.78 times
and 6.13 times as of December 31, 2021, 2020 and 2019, respectively,
resulting on a leverage ratio that meets the Company's management
and risk policies.
Financial instruments per category
Below are the Company's financial instruments by category:
The proposed transactions must meet certain criteria, including that
the hedges are lower than established risk parameters, and that they
are the result of a detailed analysis and are properly documented.
Sensitivity analysis and other risk analyses should be performed
before the transactions are conducted.
Capital management
The Company's objectives when managing capital is to safeguard
its ability to continue as a going concern, so that it can continue to
provide returns to stockholders and benefits to other stakeholders, as
well as maintaining an optimal capital structure to reduce the cost of
capital.
To maintain or adjust the capital structure, the Company may adjust
the amount of dividends paid to stockholders, return equity to
stockholders, issue new shares or sell assets to reduce debt.
Cash and cash equivalents
Restricted cash
Financial assets at amortized cost:
Trade and other accounts receivable
Financial assets at fair value with
changes through profit or loss (1)
Financial instruments (zero strike call)
Total financial assets
2021
As of December 31,
2020
$ 1,613,697
$ 3,123,955
261,827
2019
$ 857,742
2,420,149
2,844,473
3,310,000
92,673
$ 131,632
866,098
$ 4,033,846
$ 6,230,255
$ 4,260,415
Financial liabilities at amortized cost:
Current debt
$ 252,072
Lease liability
Trade payables, related parties
484,254
2,138,783
12,607,365
$ 1,609,301
627,024
2,376,195
13,034,985
2,905,871
13,836,310
703,348
and sundry creditors
Non-current debt
Other non-current accounts
payable
Financial liabilities measured at fair
value with changes in results:
Derivative financial instruments (1)
Total financial liabilities
33,575
$15,516,049
207,197
$17,854,702
143,712
$18,586,971
(1) The Company designated the derivative financial instruments
that comprise this balance, as hedges for accounting purposes, in
accordance with what is described later in Note 4.
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