2020 Annual Report

2020 ANNUAL REPORT MESSAGE FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS MEGACABLE. Dear shareholders, 2020 saw major changes in the way that we live and work, among many other aspects. It was a time to learn, reevaluate strategies and results, and rethink the way we work. At Megacable, we choose to tackle challenges head on, take advantage of opportunities, and plan for the future. Throughout this time, we showed the world our ability to adapt, become resilient, make quick decisions, and implement any necessary actions. The outstanding work done by our team not only allowed us to continue moving forward, but it also enabled us to capitalize on opportunities, use our technology and infrastructure in the most efficient way possible, and offer the best solutions to our customers. As a result of these actions, we increased both growth and profitability. The COVID-19 pandemic has created deep-rooted and permanent changes in different markets, which can be clearly seen in the acceleration of trends and changes in the habits, consumer patterns and requirements of our customers. Working from home is here to stay, and this trend will continue to grow, in addition to other online activities, such as entertainment, training, education, and the acquisition of goods and services. There was increased demand for all of these in 2020 despite decreased revenue as a result of the economic crisis. This is how communication, the Internet, and the use of digital platforms have become essential products and services for households and companies no matter their size. Our business model is underpinned by the best technology, wide ranging coverage, the most attractive entertainment options, and the most efficient platforms, all of which allow us to offer our customers solutions that meet their demands opportunely. At Megacable, we never stop investing, and, despite the uncertainty that characterized 2020, we accelerated our investment strategy. Thanks to this strategy, we are on the way to connecting 12 cities with a GPON network; we increased our node capacity; we rolled out XView+ based on Android TV (whose launch was planned for February 2021 and was successfully carried out); and we began offering mobile telephony to our market. By being able to quickly understand the needs of our customers, provide quality services and products, and offer promotions that encompass affordable packages, practically all of our services reported growth, with the exception of some corporate market segments, such as tourism and those related to services such as restaurants and entertainment, which were severely affected by the public health crisis than other sectors. Furthermore, we rolled out new payment channels through our website and other digital mediums, in addition to promote those already existing, such as banks and convenience stores, among other establishments, to reduce the flow of subscribers at our customer service centers. In addition, this year we also saw a lower disconnection rate given the essential nature of our services. Through the At Megacable, We Are With You (En Megacable estamos contigo) campaign, we provided free connectivity to all the social welfare institutions within our footprint, which had a positive impact on numerous communities through social programs. In terms of the environment, we implemented measures to mitigate the impact that we have by automating processes, reducing travel, implementing programs to replace four-wheeled vehicles with two-wheeled alternatives, and modernizing our air-conditioning and lighting systems in order to decrease electricity use. We also promoted a paperless campaign among our employees and customers, in addition to promoting the recycling at our offices and ensuring that we correctly dispose of any waste, above all, electronics. 2020 was a challenging year, one that put our vision, business strategy and model to the test; however, it allowed us to consolidate our mission: to continue working, investing and providing the best entertainment and connectivity services in order to consolidate our presence and leadership. Thanks to the professionalism and passion of our employees, the support of our suppliers, and the trust placed in this by our customers and shareholders, we continue to meet our goals. To all of you, I would like to express our deepest gratitude. As a result of a smart and well-rounded investment decisions, Megacable is driving differentiation that is underpinned by an innovative vision of the future. We implemented health and safety protocols to combat COVID-19, both at our offices and our customer service channels. During home visits, we ensure compliance with all prevention measures, including the use of face masks, face shields, gloves and other personal protection equipment, in addition to requesting the head of the household to sign a letter confirming that nobody in their home has been infected by COVID-19. Furthermore, we rolled out PCR testing for employees, and we provided medical support in the event of a positive test result. Thanks to these steps, our infection rate was extremely low. This was and still is a strong investment in terms of materials, inputs and training, but is something in which we cannot spare, because the most important thing for the Company is the safety of our employees and their families, as well as our subscribers. Francisco Javier R. Bours Castelo CHAIRMAN OF THE BOARD OF DIRECTORS Manuel Urquijo Beltrán SECRETARY OF THE BOARD OF DIRECTORS 12

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