To our INVESTORS

Global economic recovery remains slow due to the measured expansion of advanced countries and the weakening of developing nations. Financial markets were affected by the recovery of the American economy which fueled the strengthening of their currency, doubts on the handling of their economic policy and economic perspectives in China, and the fall in oil prices and raw materials, among others. Likewise, there is disagreement among the positions on monetary policies of major economies, and increases and lowering of interest rates.

Mexico’s economy posted a moderate 2.5% growth in GDP, which was regarded as favorable in comparison to other Latin-American countries; inflation was of 2.13%, reaching minimum historical levels. Tax revenues and the fiscal balance were affected by the effects of the fall in oil prices. The performance of the exchange rate in 2015, which was also influenced by other external factors in addition to the fall in oil prices, required the intervention of the Central Bank of Mexico through dollar auctions which reduced international reserves by 24 billion dollars.

Other measures that will be implemented in 2016 such as adjustments in spending in the Federal Public Administration, increase in interest rates and additional interventions by the Central Bank of Mexico and other entities in matters of monetary and fiscal policy are focused on reinforcing the fundamentals of the economy.

Our company began 2015 with a portfolio of 11,766 towers that resulted from the division of Telcel into OPSIMEX as a new business entity. During 2015 our portfolio grew 9.4%, ending the year with 12,874 towers. The aforementioned number of towers enabled us to position ourselves as the number one player in the market. The passive infrastructure we possess can be accessed and used by any operator and constitutes an option for financing capital investments and expediting the development of their own networks.

Under the protection of the Reference Offer, Master Lease Agreements were signed with Telcel, Telefónica and AT&T. In addition to the Site Agreements that were signed with Telcel, Site Agreements are also being signed with Telefónica and AT&T.

Telesites attained the projected results, posting a Total Income of 4,735.2 million pesos, which, with a 60.7% margin, generated an EBITDA of 2,876.6 million pesos. A total of 1,108 sites were built during the course of the year.

It must be noted that on December 21, 2015, Telesites shares were recorded in the National Securities Registry of the National Banking and Securities Commission and listed in the Bolsa Mexicana de Valores, S.A.B. de C.V. (Mexican Stock Exchange).

During 2016, Telesites will post significant growth in its portfolio, with a double digit growth derived from the construction of new towers for Telcel, which will represent an investment of between 1.3 and 1.7 billion pesos.

Our company will continue to implement various strategies aimed at increasing profitability, including emphasis on (i) cost reduction, (ii) optimum operation and maintenance of its towers, (iii) optimized planning of the requirements for new sites, the demand of mobile operators and their technological requirements and, (iv) management of the contractual relationship with clients and suppliers.

Telesites is a company with an ideal passive INFRASTRUCTURE FOR supporting the GROWTH in demand for telecommunications networks necessary for covering the expansion and coverage of mobile data in our country.