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Investor Presentaiton

ANNUAL INTEGRATED REPORT 2021 | AXTEL = Fair value hierarchy The following is an analysis of financial instruments measured in accordance with the fair value hierarchy. Three different levels are used as presented below: • • • Level 1: Quoted prices for identical instruments in active markets. Level 2: Other valuations including quoted prices for similar instruments in active markets, which are directly or indirectly observable. Level 3: Valuations made through techniques where one or more of their significant data inputs are unobservable. The following table presents the Company's assets and liabilities that are measured at fair value as of December 31, 2021, 2020 and 2019: Level 1 As of December 31, 2021 Level 2 Level 3 Total Financial assets (liabilities): Interest rate swap $ $ (33,575) $ $ (33,575) $ $ (33,575) $ $ (33,575) Level 1 As of December 31, 2020 Level 2 Level 3 Total Financial assets (liabilities): Interest rate swap $ $ (207,197) $ $ (207,197) $ $ (207,197) $ $ (207,197) Level 1 As of December 31, 2019 Level 2 Level 3 Total Zero strike calls $ 92,673 $ $ $ Forwards Interest rate swap (6,535) (137,177) $ 92,673 $ (143,712) $ $ (51,039) Financial assets (liabilities): 92,673 (6,535) (137,177) 05 • The specific valuation techniques used to value financial instruments include: Market quotations or quotations for similar instruments. The fair value of forward exchange agreements is determined using exchange rates at the closing balance date, with the resulting value discounted at present value. Other techniques such as the analysis of discounted cash flows, which are used to determine fair value of the remaining financial instruments. • CRITICAL ACCOUNTING ESTIMATES AND SIGNIFICANT JUDGMENTS Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below: a. Impairment and useful lives of long-lived assets The Company reviews depreciable and amortizable assets on an annual basis for signs of impairment, or when certain events or circumstances indicate that the book value may not be recovered during the remaining useful life of the assets. For intangible assets with an indefinite useful life, the Company performs impairment 45 145
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