Trevali Mining
Annual Report 2006

Plain-text annual report

6 0 0 2 t r o p e r l a u n n a a s i v e l e T Grupo Televisa, S.A.B. Av. Vasco de Quiroga 2000 C.P. 01210 México, D.F. (5255) 5261-2445 www.televisa.com www.televisair.com annual report 2006 Grupo Televisa, S.A.B., is the largest media company in the Spanish-speaking world and a major participant in the international entertainment business. It has interests in television production and broadcasting, production of pay television networks, international distribution of television programming, direct-to- home satellite services, publishing and publishing distribution, cable television, radio production and broadcasting, professional sports and live entertainment, feature film production and distribution, gaming, and the operation of a horizontal internet portal. Grupo Televisa also owns an unconsolidated equity stake in La Sexta, a free-to-air television venture in Spain. Investor information Corporate headquarters Grupo Televisa, S.A.B. Av. Vasco de Quiroga 2000 C.P. 01210 México, D.F. (5255) 5261 2000 Legal counsel Mijares, Angoitia, Cortés y Fuentes, S.C. Montes Urales 505, 3rd Fl. C.P. 11000 México, D.F. (5255) 5201-7400 Fried, Frank, Harris, Shriver & Jacobson LLP One New York Plaza New York, New York 10004 U.S.A. (212) 859-8000 Independent auditors PricewaterhouseCoopers, S.C. Mariano Escobedo 573 C.P. 11580 México, D.F. (5255) 5263-6000 Depositary JPMorgan Chase Bank One Chase Manhattan Plz., 40th Fl. New York, New York 10081 U.S.A. (866) 576-2377 adr@jpmorgan.com Common stock data CPOs (Certificados de Participación Ordinarios) covering the Grupo Televisa, S.A.B., comprise 117 shares (25 A Shares, 22 B Shares, 35 D Shares and 35 L Shares), and are listed and admitted for trading on the Bolsa Mexicana de Valores, S.A. de C.V. (the Mexican stock exchange), under the ticker symbol TLEVISA CPO. The GDSs (Global Depositary Shares), each representing five CPOs, are listed on the New York Stock Exchange and trade under the ticker symbol TV. On March 22, 2006, Televisa changed its GDS ratio from its previous 1 GDS per 20 CPOs to 1 GDS per 5 CPOs, a 1:4 GDS split. Dividend policy Decisions regarding the payment and amount of dividends are subject to approval by a majority of the A Shares and B Shares voting together gene- rally, but not necessarily, on the recommendation of the board of directors, as well as a majority of the A Shares voting separately. On March 25, 2004, the company’s board of directors approved a dividend policy under which Televisa intends to pay an annual regular dividend of Ps.0.35 per CPO. SEC filings Televisa files and submits annual reports to the US Securities and Ex- change Commission. This annual report contains both historical information and forward-looking statements. These forward-looking statements, as well as other forward-looking statements made by the company, or its repre- sentatives from time to time, whether orally or in writing, involve risks and uncertainties relating to the company’s businesses, operations, and financial condition. A summary of these risks is included in the company’s filings with the US Securities and Exchange Commission, and this summary as well as the other filings with and submissions to the US Securities and Exchange Commission, are and will be available through the office of investor relations upon written request. Investor relations We ask that investors and analysts direct all inquiries to: Grupo Televisa, S.A.B. Av. Vasco de Quiroga 2000 C.P. 01210 México, D.F. (5255) 5261-2445 ir@televisa.com.mx www.televisa.com www.televisair.com This annual report is available in both English and Spanish. April 2007 Este informe anual está disponible tanto en español como en inglés. Abril 2007 Table of contents 2 Dear fellow shareholders 4 Financial highlights 6 Televisa at a glance 10 Business segments 18 Fundación Televisa 19 MD&A 31 Board of directors 32 Financial statements  Dear fellow shareholders l s r e d o h e r a h s w o l l e f r a e D Our 2006 results once again illustrate the strength of our business and extend our long track record of solid revenue and margin growth. Our high-quality content consistently drives our performance, as does our ability to maximize synergies among our business segments. In 2006, we exported our programs to more than 60 coun- tries throughout the world. In the United States, our content reaches viewers through Univision. Our programming repre- sented approximately 42 percent of Univision’s non-repeat broadcast hours, including most of its prime-time hours. We achieved strong sales growth in nearly all our operating segments during the year. Consolidated sales grew 12.2 percent, to reach Ps.37.9 billion. Our operating segment income in- creased 19.4 percent to Ps.16.4 billion, and we achieved a record-high operating segment income margin of 43.3 percent. Our Television Broadcasting segment is fundamental to our success. In 2006 we aired 24 of the top 25 programs in Mexico, and 83 of the top 100. Across our television broad- casting business, our average sign-on to sign-off audience share for the full year was 71 percent, driven primarily by our programming on Channel 2, the country’s leading tele- vision broadcast network. We produce nearly 100 percent of the programming on Channel 2, including telenovelas, newscasts, game shows, and variety shows. This popular line-up captured an average sign-on to sign-off audience share of 31.8 percent. We recently began exporting program formats to coun- tries around the world, and we assist local production companies in bringing them to life. Currently some of our most popular shows, locally produced, are entertaining audiences in countries such as Romania, Argentina, and the Czech Republic. Sky Mexico is the national leader in direct-to-home satel- lite television service. We added 179,500 new subscribers in 2006, bringing the total subscriber base to more than 1.4 million by year end. During the year we provided exclusive access to a majority of the 2006 FIFA World Cup games and all of the Spanish soccer league games. We also launched several new channels featuring movies, music, special events, sports, and children’s programs. We will continue to bring exciting new channels to our subscribers and see excellent growth potential for this platform. We achieved a record-high operating segment income margin of 43.3% Our Pay Television Networks segment delivered robust growth throughout the year. We produce 26 channels un- der 14 different brands for pay-television systems in more than 46 countries, reaching more than 16 million subscrib- ers throughout the world. In the United States we distribute five pay-television channels through TuTV, our joint venture with Univision. Given the quality of our networks, the strong growth of the Hispanic population in the United States, and the increased pay-TV penetration in Mexico and Latin America, we continue to see excellent growth potential in this segment. Cablevisión, our cable television business in Mexico City and the metropolitan area, increased its subscriber base by 17.6 percent, reaching more than 496 thousand subscribers at year end. All of those subscribers now enjoy our programs in digital format, thanks to the completed conversion of our transmission from analog to digital format in December 2006. Cablevisión also enjoyed strong growth in its broad- band business, adding 35 thousand broadband subscribers in 2006 and closing the year with 96 thousand in all. We expect even greater growth in our subscriber base and our profits in the coming years. These will come not only from our ongoing efforts to improve our service but also from new regulations that will allow us to broaden our offerings to include telephony services. We are very opti- mistic about the future of this business segment. We are using a broad array of digital platforms to grow and cross-promote our businesses. We distribute our programs, music, and other content through more than 120 vertical  l s r e d o h e r a h s w o l l e f r a e D sites linked to Esmas, the leading digital entertainment web portal in Latin America. Our new video-on-demand, live television, and our online music store have made Televisa a leader in online entertainment. We see significant op- portunities to distribute and promote our content over the Internet and are seeking new ways to broaden our reach in the digital space. We entered the gaming business in 2006. We currently have five bingo parlors in operation under the Play City brand, and we expect to establish a total of 65 by 2013. In addition, we launched Multijuegos, our online lottery business, with access to a network of terminals located in stores through- out the country. We are very excited about the opportunities in this industry. Televisa is the world’s largest publisher and distributor of Spanish-language magazines. In our publishing business we launched 16 new titles and grew total circulation to 155 million, an increase of 6.9 percent over that of 2005. We currently distribute more than 130 magazine titles to more than 105 thousand points of sale throughout the world. We will continue to take advantage of new opportunities to grow both of these businesses. We have a strong balance sheet, and expect to continue re- warding our shareholders for their faith in Televisa long into the future. We appreciate the effort of our people and our board of directors. We also appreciate the support and loyalty of our customers and the patronage of our audience. We look for- ward to offering them even greater value and more choices in the future. Thank you for your trust and support. Emilio Azcárraga Jean Chairman of the Board and Chief Executive Officer April 2007  Financial highlights s t h g i l h g h i l i a c n a n F i Net sales Operating segment income1 Margin Operating income Margin Net income Earnings per CPO 2005 2006 Ps. 33,798 Ps. 37,932 13,758 40.7% 16,428 43.3% % 12.2 19.4 11,241 33.3% 13,749 22.3 36.2% 6,374 8,586 34.7 2.19 2.96 Shares outstanding at year-end (in millions) 339,941 337,782 Total debt at year-end 19,227 Cash and temporary investments at year-end 15,377 18,782 15,811 (2.3) 2.8 Net debt at year-end 3,850 2,971 (22.8) In millions of Mexican pesos in purchasing power as of December 31, 2006, except per-CPO amounts and shares outstanding. 1 Operating segment income is defined as operating income before depreciation, amortization, and corporate expenses. For reconciliation of operating segment income with operating income, see Note 23 to our year-end consolidated financial statements. Net sales 37,932 33,798 2005 2006 Operating segment income1  16,428 43.3% 13,758 40.7% 2005 2006 margin s t h g i l h g h i l i a c n a n F i Television Broadcasting 53.8 % Television Broadcasting 62.8 % Pay Television Networks Programming Exports Publishing Publishing Distribution 3.4 % 5.4 % 7.4 % 1.1 % Sky Mexico 19.1 % Cable Television Radio Other Businesses 5.1 % 1.1 % 3.6 % Pay Television Networks Programming Exports Publishing Publishing Distribution 4.0 % 5.1 % 3.3 % 0.1 % Sky Mexico 21.1 % Cable Television Radio Other Businesses 4.8 % 0.6 % (1.8) % Televisa at a glance Grupo Televisa, S.A.B., is the largest media company in the Spanish-speaking world and a major participant in the international entertainment industry. BUSINESS SEGMENT 1 Television Broadcasting 2 Pay Television Networks 3 Programming Exports 4 Publishing 5 Publishing Distribution DESCRIPTION Televisa operates four broadcast channels in Mexico—2, 4, 5, and 9—through 258 affiliated stations throughout the country; we are the world’s leading producer of Spanish- language television content We produce 26 televi- sion channels under 14 different brands for pay-TV systems. In the United States we distribute five of our pay-TV channels through TuTV, our 50/50 joint venture with Univision. We export our programs to television networks The world’s largest Spanish- language magazine pub- lisher; we publish more than 130 titles under 84 brands The world’s largest Span- ish-language magazine distribution company AUDIENCE / REGION Sign-on to sign-off audience share of 71 percent More than 16 million pay-TV subscribers in more than 46 countries, including Mexico, the United States, Australia, Canada, and countries in Latin America, the Caribbean, and Europe More than 60 countries worldwide Annual circulation of approximately 155 million in more than 20 countries We sell our magazines through more than 25 thousand points of sale in Mexico and more than 80 thousand abroad OWNERSHIP 100% 100% 100% 100% 100% 2, 3, 4, 9, A, D 2, 3, A 3 1, 2, 4, 5, 6, 7, 8, 9, B, C, D 2, 3, 4, 5, 6 2, 3, 4, 5 3 2 Grupo Televisa, S.A.B., is the largest media company in the Spanish-speaking world and a major participant in the international entertainment industry. 6 Sky Mexico 7 Cable Television 8 Radio 9 Other Businesses * As of December 31, 2006 Unconsolidated Businesses Mexico’s direct-to-home satellite television system Offers cable television services and broadband ac- cess in Mexico City and the surrounding metropolitan area Our radio network extends to more than 80 owned and affiliated broadcast stations More than 1.4 million gross active subscribers More than 496 thousand pay-TV subscribers and more than 96 thousand broadband subscribers Reaches approximately 70 percent of Mexico’s population Esmas.com. The leading digital entertainment web portal in Latin America Gaming. Bingo parlors and an online lottery business Soccer team. América Azteca Stadium. Mexico’s largest stadium Videocine. Feature-film-produc- tion and distribution company A. La Sexta. Free-to-air channel in Spain that began operations in March 2006 B. Ocesa Entretenimiento. The leading live-entertain- ment company in Mexico C. Volaris. Low-cost- carrier airline D. Televisa EMI. Joint ven- ture with EMI music Esmas.com. More than 7 million unique visitors per month Gaming. 65 locations by 2013 and access to a nationwide network of electronic terminals Azteca Stadium. Seats approximately 105 thousand spectators Videocine. Operations in Mexico and the United States La Sexta. Currently covers 77.4% of the Spanish territory Ocesa Entretenimiento. Produced 326 events with more than 4,200 presentations Volaris. Currently offers flights to 11 cities in Mexico Televisa EMI. Operations in Mexico and the United States 58.7% 51% 50% 100% 2, 3, 4, 9, A, D 2, 3, A 3 1, 2, 4, 5, 6, 7, 8, 9, B, C, D 2, 3, 4, 5, 6 2, 3, 4, 5 3 A. 40% C. 25% B. 40% D. 50% 2  Our commitment is to create the most innovative programming in the industry. Our growth over the past years is a testament to our ability to fulfill that pledge.  Televisa is much more than the combination of each of its businesses. Time and again, we have demonstrated our ability to leverage our content across our business segments to maximize the value of our business as a whole. 10 Business segments Television Broadcasting Televisa produces more Spanish-language television content than any company in the world. Our high-quality television programs consistently top the national rating charts in Mexico and around the world. In fact, our over-the-air channels enjoy an average sign-on to sign-off audience share of more than 70 percent in Mexico, our pay-TV channels reach more than 16 million pay-TV subscribers around the world, and our programs entertain audiences in more than 60 countries worldwide. Our over-the-air channels enjoy an average sign-on to sign-off audience share of more than 70 percent in Mexico. The sheer range of our programming options—telenovelas; news and sports programs; comedy, reality, and game shows; children’s programming; musical and cultural events; movies; and educational programming—guarantees that we reach ev- ery audience segment in every one of our markets. In addition, digital technology has enabled us to expand our content and extend our distribution network beyond the television screen. As a result, we continue to broaden our reach. The backbone of our success has always been—and will con- tinue to be—the quality and innovation of our programming. By continually upgrading our production and facilities we ensure maximum quality in our content. We currently have 26 digital studios, 6 of which operate in high definition. We are also in the process of installing a media asset management system, which will store, catalogue, and distribute all of Televisa’s productions. g n i t s a c d a o r B n o i s i v e e T l Televisa operates four broadcast channels in Mexico—2, 4, 5, and 9—through 258 affiliated stations throughout the coun- try. Channel 2 is the country’s leading television broadcast network; nearly 100 percent of the programs aired over the channel are produced by Televisa, including our world-famous telenovelas. In 2006 our top telenovelas were La Fea Mas Bella, Alborada, La Verdad Oculta, and Barrera de Amor. Amor Mio, a new sitcom coproduced by Televisa with the copyright holders, first aired in August 2006 to enthusiastic audiences. These and other programs, including our newscasts, game shows, and variety shows, form Channel 2’s programming line-up and captured an average sign-on to sign-off audience share of 31.8 percent. Channel 4 broadcasts in Mexico City and the surrounding met- ropolitan area. Its programs consist primarily of news, comedy, sports, and entertainment shows. Among its more popular programs are El Noticiero a las Tres and the magazine Ellas con las Estrellas, whose average audience share in Mexico City is 13.8 percent and 8.6 percent, respectively. Channel 5 offers the best option for reaching younger audiences, particularly those ranging in age from 18 to 34 years. Channel 5’s programming line-up includes popular American series such as Prison Break and CSI; magazines and comedy shows, including Otro Rollo, Incógnito, and Wax TV Acida; and cartoons. Channel 9 appeals to families and airs mainly movies, sports shows, sitcoms, game shows, news programs, and reruns of popular programs from Channel 2. Barrera de Amor Telenovela Amor Mío Sitcom La fea más bella Telenovela Otro Rollo Talk show In 006 La Fea Más Bella was a phenomenal success achieving an average audience share of 7. percent. 11 Pay-TV Networks Programming Exports Televisa produces 26 television channels under 14 different brands for pay-TV systems in more than 46 countries, including Mexico, the United States, Australia, Canada, and countries in Latin America, the Caribbean, and Europe. These channels include three music channels (Telehit, Ritmo- son Latino, and Bandamax), five movie channels (De Película, De Película Clásico, Golden, Golden 2, and Cinema Golden Choice Latinoamérica), five variety and entertainment channels (Unicable, Canal de Telenovelas, American Network, Canal de las Estrellas Latinoamérica, and Canal de las Estrellas Europa), and one news channel (nOTIcias). Together, these channels reach more than 16 million pay-TV subscribers. Our pay-TV channels reach more than 16 million subscribers around the world. We distribute five of our pay-television channels in the United States through TuTV, our joint venture with Univision. These in- clude film and music lifestyle channels that reached more than 1.5 million households in 2006. In 2006 Televisa exported its content to more than 60 countries throughout the world. In the United States, Televisa distributes its content through Univision, the country’s premier Spanish- language media company. In 2006, our programming repre- sented approximately 42 percent of Univision network’s non- repeat broadcast hours, including most of its prime time, as well as 19 percent of TeleFutura network’s non-repeat broad- cast hours. Our programming is a primary driver of Univision’s strong audience shares and high ratings. As an example, dur- ing the highly competitive 8:00-9:00 p.m. hour, La Fea Más Bella made Univision the #3 network among all adults aged 18–34. Televisa exports not only programs but also some of its most popular formats. In 2006 we licensed the format for Bailando por un Sueño to television networks in Argentina, Colombia, Romania, Paraguay, Panama, Ecuador, Brazil, El Salvador, Costa Rica, Slovakia, Czech Republic, and Russia. The show achieved impressive average audience shares and ratings; in Panama, for example, it captured 47 rating points in its initial episode and was the highest-rated program in the country. Bailando por un Sueño, Romania i s t r o p x E g n m m a r g o r P / s k r o w t e N V T - y a P Otro Rollo Talk show Ritmoson Latino Pay-TV music channel Primero Noticias Morning newscast 1 Sky Mexico and Cablevisión enjoyed robust subscriber growth throughout the year. Sky Mexico Cablevisión l n ó i s i v e b a C / o c x e M y k S i Cablevisión offers cable services in Mexico City. In the past three years, we have increased our subscriber base from 364 thousand in 2003 to more than 496 thousand in 2006. We achieved this growth largely as a result of the conversion of our transmission from an analog to a digital format. The conversion, together with our additional services, including Video on Demand and High Definition, has positioned Cablevisión as one of the leaders in Mexico’s cable television industry. Cablevisión also offers subscribers broadband internet service. Our broadband subscriber base grew to more than 96 thousand in 2006 from 60 thousand in the previous year. We expect fu- ture growth to be spurred by opportunities resulting from new regulations that will allow cable companies to provide telepho- ny services. In the past three years, we have increased our subscriber base from 6 thousand in 00 to more than 496 thousand in 2006. Sky Mexico remains the leader in direct-to-home satellite tele- vision service in Mexico. Sky increased its subscriber base by 14.4 percent during 2006, adding more than 179 thousand subscribers and closing the year with a total of more than 1.4 mil- lion subscribers. Sky’s subscriber base grew 14.4% during 006 to more than 1.4 million. High-quality content has been instrumental to Sky’s success. In 2006, Sky subscribers enjoyed exclusive access to some of the most exciting and popular sporting events in the world, including more than half of the 2006 FIFA Soccer World Cup games; all of the games of the Spanish soccer league; some of the Mexican soccer league games; and many other major sporting events, including NFL and MLB games, golf tourna- ments, and others. Our exclusive broadcast of 34 of the 64 games of the 2006 FIFA Soccer World Cup tournament was a major highlight of the year. Along with the tournament, we also featured a prime- time show, Mundial Total, which brought viewers analysis and commentary by some of the sport’s best-known and popular personalities, as well as highlights of the matches. In addition, Sky Mexico launched new channels including SKY ONE (special events), TCM and MGM (movies), MTV Hits and MTV Jams (music videos), Nick GaS (for children), and The Golf Channel (sports). CARAS and National Geographic Magazines Televisa Deportes team FIFA 2006 World Cup We produce and distribute more than 130 magazine titles in more than 20 countries. 1 We produce 5 of the 10 most-read titles in the US Hispanic market. . Publishing and Publishing Distribution Televisa is the world’s largest publisher and distributor of Spanish-language magazines. We produce and distribute more than 130 titles under 84 brands in more than 20 coun- tries, and we hold the leading position in 15 of those markets. In the US Hispanic market, we produce five of the ten most-read titles, outperforming our competitors Time, Reader’s Digest, American Media, and Conde Nast. In 2006 we introduced 16 titles, and our annual magazine circulation grew 6.9 percent to 155 million. Through our magazine distribution operations, the largest in Latin America, we sell our magazines through more than 25 thousand points of sale in Mexico and more than 80 thousand abroad. The key to the success of our publishing division is our ability to develop regional brand strategies that tailor content to each local market. We understand the Latin American reader, and we address each relevant segment by presenting a unique content proposition. In order to capitalize on this strategy we manage both pan-regional and local advertising sales forces in key coun- tries as well as in our publishing distribution operations. n o i t u b i r t s i D g n h s i l i b u P d n a g n h s i l i b u P Spanish Soccer League Exclusive broadcast on Sky Mexico Editorial Televisa Storage and distribution center 1 Esmas.com is the leading digital entertainment web portal in Latin America. l i a t i g D a s i v e e T l Televisa Digital To capitalize on the opportunities that digital technology offers we operate Esmas, the leading digital entertainment web por- tal in Latin America. Esmas contains more than 120 vertical sites and enjoys more than 7 million unique visitors and 190 million page views per month. In our constant drive to maxi- mize the value of our content, we continually seek out new ventures that help us solidify our position as a global leader in the entertainment industry. In 2006 we launched the following internet services: Video-on-demand service With this service, internet users can download content from Televisa and third parties, including television programs, movies, and music videos. Live online television service (available in Mexico and selected territories) With this service our internet users can watch a live stream of Televisa’s four broadcast channels, which is enhanced by a 15- day time-shifting archive. Short-video streaming Within our portal we launched a new short-clip streaming service with more than 1,500 videos, each less than 5 minutes long. Today, we are streaming 1.7 million videos per week. Esmas.com draws more than 7 million unique visitors each month. Esmas player Video-on-demand service We bring music, news, and entertainment to millions of listeners through our network of more than 80 broadcast radio stations. 1 Radio and other businesses segments Radio Our significant presence in Mexico’s radio market allows us to bring a wide variety of content—including entertainment, news, sports, music, and information—to listeners via a vast network of more than 80 owned and affiliated broadcast stations. Soccer We own one of Mexico’s soccer teams, the América. In addition, we own the Azteca Stadium, which has seating capacity of approximately 105 thousand. Feature-Film Production and Distribution We co-produce selected first-run Spanish-language fea- ture films, distribute them to Mexico’s movie theaters, and later release them for broadcast on pay-TV systems and network television. We also distribute third-party feature films to movie theaters in Mexico. In 2006 we distributed 40 movies, including Superman Returns, Una Película de Huevos, and Brokeback Mountain. Tarabu The first legal, online digital music store in Latin America, Tarabu utilizes proprietary technology and offers more than 450 thousand songs, including music from all the major labels. Through this website we cross-promote the artists of our re- cord label, Televisa EMI. Esmas Player This desktop application enables users to manage their mu- sic, image, and video libraries and access our podcasting, video, music, and liveTV services through a simple user interface. Televisa Digital distributes an increasing amount of our con- tent, including text, image, audio, and games, in the wireless space. With more than 76 exclusive talent artists signed, major music labels, and other international content, we are the lead- ing wireless content aggregator in Latin America. Every day Televisa delivers more than 800 thousand content down- loads in 16 countries. With these diverse services, Televisa’s offerings reach more and more people, providing audiences full control regardless of how they choose to access their entertainment and information. Moreover, we have greatly extended our ability to cross- promote our offerings to maximize the synergies inherent in our various business segments. s t n e m g e s s e s s e n i s u b r e h t o d n a o d a R i Tarabu Digital music store América soccer team Gaming business In 2006 we launched our gaming business. As of December 2006 we were operating five bingo parlors under the brand name Play City, and we have plans to establish a total of 65 bingo parlors throughout Mexico. The bingo parlors feature traditional bingo, electronic bingo machines, and sportsbooks. In addition, we recently launched Multijuegos, an online lottery with access to a nationwide network of electronic terminals. 16 s t n e m g e s s e s s e n i s u b r e h t o d n a o d a R i Tomás Varo Multijuegos advertising campaign Play City Antara Bingo parlor La Sexta Free-to-air channel in Spain Una película de huevos Film distribution OCESA produced more than 4 thousand presentations throughout Mexico in 006. 17 Televisa EMI Music Through a joint venture with EMI music, we have formed two labels, Televisa EMI Music in Mexico and EMI Televisa Music in the United States. This joint venture brings together EMI’s deep knowledge of the music business and our considerable multimedia capa- bilities. The labels bring the music of several popular groups, including RBD, Belinda, Juan Luis Guerra, Fonseca, and others, to listeners throughout the world. OCESA Entretenimiento Mexico’s leading live-entertainment company brings concerts, shows, and other major events to audiences throughout Mexico. During 2006, OCESA produced 326 events with more than 4,200 presentations to audiences throughout the country, including concerts by U2, the Rolling Stones, Shakira, and Luis Miguel. La Sexta Launched in March 2006, La Sexta, our free-to-air channel in Spain, is off to a great start. In its first few months alone, La Sexta broadcast the 2006 FIFA Soccer World Cup and Basketball World Cup championships. La Sexta is also the exclusive over- the-air broadcaster of one of the ten Spanish Soccer League games played each weekend. La Sexta has been established as an exciting alternative in Spanish television. s t n e m g e s s e s s e n i s u b r e h t o d n a o d a R i Rebelde, our telenovela for teenagers, is an excellent example of how we integrate our busi- nesses to broaden our reach. The success of the original program has grown into a phenomenon that includes a sequel, Familia RBD; CDs; concerts; merchandising; SMS; and Rebelde the magazine. U2 in concert in the Azteca Stadium Presented by OCESA 1 Fundación Televisa The mission of Fundación Televisa is to provide personal devel- opment opportunities for as many people as possible. We believe that, as the premier media company in Mexico, we have both a responsibility and an opportunity to make a sig- nificant contribution to the country’s social and cultural fabric. Mexico has significant, persistent problems that we think are best addressed through the public and private sectors alike, and we are honored to be in a position to influence change. Focus on Mexico’s future Fundación Televisa focuses its programs on educating and enhancing the well-being of children and young adults and pro- motes, through extensive advertising campaigns, basic human values such as respect, honesty, responsibility, generosity, and civic participation. It also sponsors housing projects for the dis- advantaged. Fundación Televisa has reached hundreds of thousands of people each year through direct aid programs and millions through its social-awareness campaigns. Since its creation six years ago, the foundation has provided, among others, nutritional packages for more than 32,000 children in under- served communities, 331 kidney and 223 cornea transplants, 1,378 treatments for children with HIV and cancer, and more than 24,000 hearing aids. In addition, its educational initiatives have provided 1,438 computer labs, 31,192 scholarships for students and teachers, 556 school libraries, and nationwide geography contests. Inspiring collective action We use our strongest assets, our telenovelas and sports pro- grams, to support our commitments. Through each broadcast of our telenovelas, whose ratings are unrivaled in Mexico, we promote causes such as the prevention of obesity, diabetes, and drug addiction. In this way, we can reach millions of view- ers and inspire them to take action. We have not achieved these results on our own; we are pleased and honored to have the support of our clients. For example, our annual Teletón, a televised program that raises money to build rehabilitation centers for disabled children, raised US$43 million in donations in 2006. In addition, we have partnered with the soccer teams in Mexico’s first division to dedicate each weekend’s games to a particular cause such as education, nutrition, health, or housing. Fundación Televisa makes a donation to the designated cause for each goal scored during the game. Promoting culture and the arts Fundación Televisa is committed to promoting the arts and preserving Mexico’s rich cultural heritage. It has sponsored numerous arts events in Mexico, as well as international exhibi- tions such as Treasures of Sacred Maya Kings, at the Metropolitan Museum of Art in New York; The Arts in Latin America, 1492– 1820, at the Philadelphia Museum of Art; Lords of Creation: The Origins of Sacred Maya Kingship, at the Dallas Museum of Art; ABCDF: Portraits of Mexico City, at the Queens Museum of Art in New York; and Jaguar Worship: Exhibition of Mexican Ancient Civilization, at the Capital Museum in Beijing, China. The activities and results of Fundación Televisa are a product of not only a strong sense of responsibility to society but also the alliances we have established with nongovernmental organiza- tions, the three levels of government, and other corporate enti- ties. After six years of work, we are pleased to announce to our shareholders that those alliances have multiplied by a factor of 15 the investment of Fundación Televisa and have enabled us to provide more and better opportunities for the people—and especially the children—of Mexico every day. a s i v e l e T n ó c a d n u F i Housing project by Fundación Televisa Bécalos Educational program Grupo Televisa, S.A.B., is the largest media company in the Spanish-speaking world and a major participant in the international entertainment business. It has interests in television production and broadcasting, production of pay television networks, international distribution of television programming, direct-to- home satellite services, publishing and publishing distribution, cable television, radio production and broadcasting, professional sports and live entertainment, feature film production and distribution, gaming, and the operation of a horizontal internet portal. Grupo Televisa also owns an unconsolidated equity stake in La Sexta, a free-to-air television venture in Spain. Investor information Corporate headquarters Grupo Televisa, S.A.B. Av. Vasco de Quiroga 2000 C.P. 01210 México, D.F. (5255) 5261 2000 Legal counsel Mijares, Angoitia, Cortés y Fuentes, S.C. Montes Urales 505, 3rd Fl. C.P. 11000 México, D.F. (5255) 5201-7400 Fried, Frank, Harris, Shriver & Jacobson LLP One New York Plaza New York, New York 10004 U.S.A. (212) 859-8000 Independent auditors PricewaterhouseCoopers, S.C. Mariano Escobedo 573 C.P. 11580 México, D.F. (5255) 5263-6000 Depositary JPMorgan Chase Bank One Chase Manhattan Plz., 40th Fl. New York, New York 10081 U.S.A. (866) 576-2377 adr@jpmorgan.com Common stock data CPOs (Certificados de Participación Ordinarios) covering the Grupo Televisa, S.A.B., comprise 117 shares (25 A Shares, 22 B Shares, 35 D Shares and 35 L Shares), and are listed and admitted for trading on the Bolsa Mexicana de Valores, S.A. de C.V. (the Mexican stock exchange), under the ticker symbol TLEVISA CPO. The GDSs (Global Depositary Shares), each representing five CPOs, are listed on the New York Stock Exchange and trade under the ticker symbol TV. On March 22, 2006, Televisa changed its GDS ratio from its previous 1 GDS per 20 CPOs to 1 GDS per 5 CPOs, a 1:4 GDS split. Dividend policy Decisions regarding the payment and amount of dividends are subject to approval by a majority of the A Shares and B Shares voting together gene- rally, but not necessarily, on the recommendation of the board of directors, as well as a majority of the A Shares voting separately. On March 25, 2004, the company’s board of directors approved a dividend policy under which Televisa intends to pay an annual regular dividend of Ps.0.35 per CPO. SEC filings Televisa files and submits annual reports to the US Securities and Ex- change Commission. This annual report contains both historical information and forward-looking statements. These forward-looking statements, as well as other forward-looking statements made by the company, or its repre- sentatives from time to time, whether orally or in writing, involve risks and uncertainties relating to the company’s businesses, operations, and financial condition. A summary of these risks is included in the company’s filings with the US Securities and Exchange Commission, and this summary as well as the other filings with and submissions to the US Securities and Exchange Commission, are and will be available through the office of investor relations upon written request. Investor relations We ask that investors and analysts direct all inquiries to: Grupo Televisa, S.A.B. Av. Vasco de Quiroga 2000 C.P. 01210 México, D.F. (5255) 5261-2445 ir@televisa.com.mx www.televisa.com www.televisair.com This annual report is available in both English and Spanish. April 2007 Este informe anual está disponible tanto en español como en inglés. Abril 2007 6 0 0 2 t r o p e r l a u n n a a s i v e l e T Grupo Televisa, S.A.B. Av. Vasco de Quiroga 2000 C.P. 01210 México, D.F. (5255) 5261-2445 www.televisa.com www.televisair.com annual report 2006 

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