2020 Annual Report

2020 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS The Group's segment revenues are as follows: Net debt as at December 31, 2019 Related party payables in less than one year Loans payable over one year with related parties Bank loans Bank loans of less than 1 year maturity valid for more than 1 year Cable Total Net debt at January 1, 2019 (412,321) (661,561) Accrued interest (59,469) (3,778,569) (314,007) (124,782) (225,255) Cash flow - Principal payments (1) 242,957 3,808,716 Cash flow - Interest payments 42,156 Cash flow Obtaining loans 315,982 (5,417) 225,255 (6,409,692) Increase in accounts payable Short-term transfer (162,696) 73,839 (4,977,233) (598,731) 4,051,673 583,393 (6,415,109) (162,696) (73,839) (106,627) 106,627 Net debt as at December 31, 2019 (275,534) (735,400) (79,922) (6,427,847) (7,518,703) (1) Includes the payment corresponding to the lease with related parties. MEGACABLE. It includes the operation of cable television systems in different states of Mexico and generates income mainly from basic and premier services. This segment also includes cable subscriber setup, pay-per-view fees, local and national advertising sales. Internet Includes high-speed services provided to residential and commercial customers. Telephony Although the Telephony segment does not meet the quantitative limits required under IFRS 8 to be reported separately, Group Management has done so because it believes that the potential growth of this segment will imply that it contributes significantly to the income of the Group in the future. The telephony receives its income from digital fixed telephony from the internet protocol, from services provided to residential and commercial customers. (28) Financial information by operating segments- The Chief Executive Officer is the highest authority in the Group's operational decision-making. Consequently, Management has determined the operating segments to report based on the internal management reports reviewed by that body to make strategic business decisions. The Chief Executive Officer analyzes the business from a geographic and product perspective. As at December 31, 2020 and 2019, there were no changes based on this analysis. The Chief Executive Officer evaluates the performance of operating segments based on operating profit. The result for interest earned and lost is not assigned to the segments, since this activity is the responsibility of the treasury, which manages the Group's liquidity. Segment information is reported based on the information used by the Chief Executive Officer for strategic and operational decision making processes. An operating segment is defined as a component of an entity for which there is separate financial information that is regularly evaluated. Business It includes the Metrocarrier, MCM, Hola and PCTV units, focused on the different connectivity, equipment, administrative services and content segments. Other segments It represents operating segments that individually comprise less than 10% of the consolidated total. Others include TV and broadcast program production operations, point distribution services, virtual private network and other network services. Corporate costs are distributed in the different segments. IFRS 8 requires the disclosure of a segment's assets and liabilities if the measurement is regularly provided to the decision- making body; however, in the Group's case, the Chief Executive Officer only evaluates the performance of the operating segments based on the analysis of the income, operating profit and assets, but not the liabilities of each segment. The income reported by the Group represents the income generated by external customers since there are no inter-segment sales. 76

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