TO OUR INVESTORS

TO THE GENERAL SHAREHOLDERS’ MEETING
AND BOARD OF DIRECTORS
Operadora de Sites Mexicanos, S.A.B. DE C.V.

In accordance with article 44 section XI of the Mexican Securities Market Act, in correlation with article 172 of the General Business Corporations Law, and in my capacity as Chief Executive Officer of Operadora de Sites Mexicanos, S.A.B. de C.V. (the “Company” or “Opsimex”), I am pleased to present this report on the Company’s operations during the fiscal year ended December 31, 2021.

2021 Economic Overview
After the devastating effects of the COVID-19 pandemic in 2020, when global GDP shrank by 3.1%, the world’s economy began to gradually recover in 2021 as vaccination programs advanced, improving immunity to the virus, and medical science gained more knowledge on how to treat the illness, while governments rolled out unprecedented monetary stimulus programs. According to the IMF, gross domestic product for the world grew 5.9% in 2021.

The US economy grew 5.7% in 2021, having declined by 3.5% the year before, driven mainly by personal consumption and gross fixed investment, which rose 7.9% and 7.8%, respectively, which offset a rising trade deficit and lower government spending.

In Mexico, GDP grew by 5.0% after an 8.4% drop in 2020, fueled by secondary activities, which gained 6.8%—particularly manufacturing, up 9.0%, and construction, up 7.3%. Tertiary activities expanded by 4.2% with a strong 10.7% pickup in retail, which offset a 3.4% slump in financial services.

The Mexican peso closed the year at 20.53 against the US dollar, a depreciation of 3.1%, after fluctuating between 19.60 and 21.92 over the course of the year. The spread between Mexican and US interest rates broadened gradually during the year, as Banco de México hiked its benchmark rate six times from 4.25% in 2020 to 6.00% at the close of 2021, while the US Federal Reserve held rates steady in that country.

Inflation driven by trade conflicts with China led many central banks to raise interest rates. In Mexico, inflation was 7.4% in 2021, primarily due to higher prices on raw materials and energy across the globe. The core component grew 5.9% and non-core inflation was 11.7%. Inflation in the United States rose to 7.04%.

Mexico’s trade balance last year was a deficit of USD11.49 billion, compared to a surplus of USD34.01 billion the year before. The oil trade balance was a deficit of USD24.93 billion, which was USD11.00 billion higher than in 2020, while the non-oil trade surplus shrank by USD34.50 billion to end at USD13.43 billion. Among Mexico’s exports, manufactured goods rose 16.7%, while imports increased in all categories, particularly consumer goods, which rose 34.9%. The global chip shortage kept Mexican automotive exports at just 2.7 million vehicles, 0.94% more than in 2020 but still 20.1% less than the 3.4 million vehicles shipped in 2019. Meanwhile, the price of the Mexican blend of oil went from USD35.8 per barrel on average in 2020 to USD64.60 in 2021.

Public finances remained healthy, with higher tax revenues driven by the economic recovery and curtailed spending under continuing austerity policies. The Public Balance was a deficit of 757.79 billion pesos, equivalent to 2.9% of GDP—similar to 2020. In proportion to GDP, the public debt went from 51.7% in 2002 to 50.1% in 2021.

The challenges will continue in 2022. The start of the year was complicated by Russia’s invasion of Ukraine, which caused a rise in the price of energy, food and other commodities around the world, along with additional inflation pressures and uncertainty over global economic growth this year.

Report on Opsimex operating and financial results
The following are some remarks on the key figures reported in our financial statements for the close of 2021, which are attached to this report, including the opinion of the Independent Auditor.

Opsimex started off fiscal year 2021 with a portfolio of 17,883 income-generating sites. Effective as of August 1, Opsimex merged with Telesites Internacional, S.A. de C.V. and Demonsa, S.A. de C.V. As a result, Opsimex consolidated the operations of Telesites Costa Rica, S.A. (“Telesites Costa Rica”), adding 307 sites located in that country. Also during the year, 901 sites built in Mexico were added to the revenue stream, along with 958 acquired in December by Fideicomiso Opsimex 4594 (“FSITES”) to end the year with a consolidated portfolio of 20,049 towers, 8,059 of them directly owned by Opsimex, 11,683 owned by FSITES and 307 owned by Telesites Costa Rica.

Over the course of the year, 1,386 new colocation contracts were added to revenues, bringing our consolidated tenancy ratio of 1.248 operators per tower by the end of 2021.

FSITES carried out its first capital increase in December 2020, in which Opsimex contributed 480 towers and the trust certificate holders contributed 692 million pesos. These sites began generating revenues for FSITES starting in January 2021.

On April 20, 2021, FSITES launched a second capital increase, in which Opsimex contributed 2,800 additional sites while the other trust certificate holders contributed another 4 billion pesos. These additional sites began generating revenues for FSITES in May 2021.

94%
EBITDA margin at the
close of 2021

The Company reported total revenues of 9 billion pesos, a 10.5% growth compared to the previous year, primarily the result of the increased number of sites and the new colocations booked during the year. EBITDA closed at 8.4 billion pesos, 10.4% higher than the year before, and the EBITDA margin ended the year at 94%.

Capital expenditures by Opsimex in 2021 totaled 8.2 billion pesos, including 7.0 billion pesos for the acquisition of 958 towers by FSITES.

In Telesites’ shareholders’ meeting on September 28, 2021, owners approved the distribution of a cash dividend of 1.5 billion pesos, which was paid out on October 29 of that year.

In general ordinary and extraordinary meetings of Telesites and Opsimex, held on January 2, 2022, shareholders approved, among other resolutions, the merger of Opsimex (as merging company, which continued to exist) with Telesites (as merged company, which ceased to exist), and the adoption of the legal form of publicly traded limited-liability stock corporation with variable capital (sociedad anónima bursátil de capital variable, or S.A.B. de C.V.) for Opsimex, along with the listing of its shares in the National Securities Registry maintained by the National Banking and Securities Commission (CNBV) and their quotation on the Mexican Stock Market, without any public subscription offer. The merger was formally completed on March 15, 2022, after the CNBV issued the corresponding authorization notice. At this point, Telesites series B-1 shares, with ticker symbol SITES, were exchanged for new Opsimex series A-1 shares, with ticker symbol SITES1; the exchange was one for one, and the initial quotation price for SITES1 was the same as the closing price of SITES on March 14, 2022.

Opsimex maintains its focus on sustained growth of the business, based on demand for telecommunication towers by clients who need to continually expand their network coverage. Key goals were met in 2021, like the fortification of FSITES, which went from 6,591 revenue-generating towers at the end of 2020 to 11,683 at the close of 2021, increasing the operating and financial efficiency of Opsimex assets.

The company and its subsidiaries intend to maintain this optimum financial structure in order to continue the pace of organic growth achieved in our 7-year history to date, while seizing opportunities that may arise in the market. We are confident that this growth trend will continue this year and in the years ahead.

Finally, Opsimex reiterates its commitment to its employees, clients and suppliers, to continue working together toward the company’s solidity and growth, under the highest standards of quality and to the benefit of all.

Fellow shareholders: We are grateful for the trust you have placed in us, and I reiterate the commitment of the entire team that makes up Operadora de Sites Mexicanos to continue improving the performance of this company’s activities.

Sincerely,
Executive Committee
Operadora de Sites Mexicanos, S.A.B. de C.V.