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Liberty Media CorpT R O P E R L A U N N A 0 1 0 2 A S I V E L E T O P U R G • T N O R F E R O F e h t t a e d a c e d a www.televisa.com www.televisair.com a decade at the FOREFRONT GRUPO TELEVISA 2010 ANNUAL REPORT 200020052001Today, Fundación Televisa (“Fundación”) reaches millions through Televisa’s media platforms and builds alliances with com-panies, non-governmental organizations, and Mexico’s government and people. Al-liances play a key role in multiplying the social impact of Fundación’s work and base funding.innovation20032004In 2000, Televisa successfully refi-nanced its debt, reducing borrow-ing costs, extending maturities, and replacing a portion of its US-dollar-denominated indebtedness with inflation-adjusted indebted-ness. As a result of these steps, Televisa significantly improved its capital structure and reduced its currency risk. That same year, Moody’s gave Televisa’s debt an investment-grade rating.2002yeardecade2009200520082006In 2006 Cablevisión completed the conversion of its network from analog to digital format. This milestone enabled the company to pro-vide a host of new services and pay-TV offer-a great year2001200020052001innovation200320042002yeardecade20092010200720052008the largest media company in the Spanish-speaking worldforefrontANNUALgrowingin the coming years”telecommunicationsTelevisa20072006In 2007 Televisa celebrated 50 years of producing its popular Telenovelas, capti-vating audiences throughout the Spanish-speaking world and beyond.Televisa launched Televisa Deportes Network (TDN)TELEVISA SIGNS LANDMARK AGREEMENT WITH UNIVISIONAs of today, Televisa has one of the largest telecom in-frastructures in the country. Through its cable and telecom assets, it reaches several of the most important cities in Mexi-co with more than 6 million homes passed and has close to 50 thousand miles of fiber and coaxial cable around the country.annual reportTelevisa will build on these milestonestelevisioncontents In the past decade, Televisa has achieved several milestones that have enabled the Company to create value through the production and distribution of its content and to strengthen its position as a leader in its industry. Today Televisa is well positioned to identify and quickly respond to opportunities and events in the rapidly growing and ever-changing global media and telecommunications market. In the coming years, Televisa will build on these milestones to continue benefiting its clients, shareholders, employees, and the communities in which it operates. COMPANY PROFILE Grupo Televisa, S.A.B., is the largest media company in the Spanish-speaking world based on its market capitalization 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, cable television and telecommunication services, magazine publishing and distribution, radio production and broadcasting, professional sports and live entertainment, feature-film production and distribution, the operation of a horizontal internet portal, and gaming. CONTENTS TELEVISA AT A GLANCE 02 / LETTER TO SHAREHOLDERS 04 / FINANCIAL HIGHLIGHTS 06 A DECADE AT THE FOREFRONT 08 / MANAGEMENT´S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 30 / BOARD OF DIRECTORS 40 / FINANCIAL STATEMENTS 41 INVESTOR INFORMATION Common stock data Investor relations CPOs (Certificados de Participación Ordinarios) of Grupo Televisa, S.A.B., comprise 117 shares each (25 Series A Shares, 22 Series B Shares, 35 Series D Shares and 35 Series L Shares), and are listed and admitted for trading on the Mexican Stock Exchange (Bolsa Mexicana de Valores, S.A.B. de C.V.), under the ticker symbol TLEVISA CPO. The GDRs (Global Depositary Receipts), each representing five CPOs, are listed on the New York Stock Exchange and trade under the ticker symbol TV. Dividend policy Decisions regarding the payment and amount of dividends are subject to approval by a majority of the Series A Shares and Series B Shares voting together, generally, by recommendation of the board of directors, as well as to the approval of a majority of the Series A Shares voting separately. On March 25, 2004, the Company’s board of directors approved a dividend payment policy pursuant to which the Company shall pay an annual ordinary dividend of Ps.0.35 per CPO. SEC filings Televisa files and submits annual reports to the US Securities and Exchange 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 representatives 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. 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 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, 3er piso 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 The Bank of New York BNY Mellon Shareowner Services PO Box 358516 Pittsburgh, PA 15252-8516 (201) 680-6825 . x m m o c . i n g i s : n g i s e D This annual report is available in both English and Spanish. April 2011. Este informe anual está disponible tanto en español como en inglés. Abril 2011. II 11 TELEVISA AT A GLANCE TELEVISION BROADCASTING The world’s leading producer of Spanish- language television content, Televisa operates four broadcast channels—2, 4, 5, and 9—in Mexico through 258 affiliated stations throughout the country. Contribution to Sales: 39% Contribution to OSI:1 46% Produced approximately 59 thousand hours of content in 2010 for free-to-air television Average weekday primetime audience share 70.5% PAY-TELEVISION NETWORKS Produces and distributes 18 pay-TV brands—15 owned and 3 represented. In the U.S., distributes its pay-TV channels through Univision. Contribution to Sales: 5% Contribution to OSI:1 7% Produced approximately 16 thousand hours of content in 2010 for pay-TV channels +26 million pay-TV subscribers PROGRAMMING EXPORTS SKY Mexico’s leading direct-to-home satellite television system; also operates in Central America and the Dominican Republic. Contribution to Sales: 19% Contribution to OSI:1 22% Demographic expansion through new packages: MiSky and VeTV. More than one million subscribers added in 2010. Subscriber base: 3 million Exports its programs and formats to television networks around the world. In the U.S., distributes its content through Univision under a recently renewed and extended Programming License Agreement (PLA). Contribution to Sales: 5% Contribution to OSI:1 7% The PLA, which was extended to at least 2025, increases the royalties Televisa receives. In addition, the PLA now includes Televisa programming for all of Univision’s audiovisual media platforms. 58 countries worldwide (approximate reach) 1Operating segment income (OSI) is defined as operating income before corporate expenses, depreciation and amortization. For a reconciliation of operating segment income with operating income, see Note 22 to our year-end consolidated financial statements. 2 22 3 3 UNCONSOLIDATED BUSINESSES La Sexta (40.8%) Free-to-air channel in Spain, which continues reporting sustained audience share of 6.6% and strong operating performance. Ocesa Entretenimiento (40%) Live-entertainment company in Mexico. 2010 most popular event: Paul McCartney concert. PUBLISHING OTHER BUSINESSES TIM Complete digital entertainment through several web portals. Gaming Bingo parlors and online lottery business. Soccer teams Three of Mexico’s professional soccer teams. Azteca stadium Mexico’s largest stadium. Radio Network of 117 owned and affiliated radio stations. Contribution to Sales: 7% The leading Spanish- language magazine publisher; produces 165 titles under 109 brands. Contribution to Sales: 5% Contribution to OSI:1 2% Consolidated restructuring process and returned to double- digit Operating Segment Income margin. Also, continued to expand the reach of its titles through digital platforms: • caras.com.mx • vanidades.com • muyinteresante.com.mx • tuenlinea.com.mx • esquirelat.com • Tvynovelas.com 20 countries reached CABLE AND TELECOM Cablevisión, Cablemás, and TVI offer pay-TV, voice, and data services in Mexico City, Monterrey, and several cities in Mexico. Telecom company Bestel provides data and long- distance services in Mexico and the United States. Contribution to Sales: 20% Contribution to OSI:1 17% Through its 20-year lease of dark fiber cable from the Mexican Federal Elec- tricity Commission (CFE), the consortium formed by Telefónica, Televisa, and Megacable will offer alternative access to data transmission services. Cablevisión Video subscribers: 668,985 Broadband subscribers: 299,157 Voice subscribers: 190,441 Cablemás Video subscribers: 997,239 Broadband subscribers: 360,049 Voice subscribers: 205,180 TVI Video subscribers: 301,698 Broadband subscribers: 147,268 Voice subscribers: 106,129 2 2 3 33 TO OUR SHAREHOLDERS: When I became CEO of Televisa in 1997, I found an incredibly successful broadcasting operation with decades of experience producing highly rated content. But at that time, Televisa was facing a very challenging financial situation. The company was highly leveraged and held some non-strategic assets. F rom 1997 to 2000, we worked hard to strengthen the competitive position of Televisa and, importantly, its financial position. We shed non-strategic assets, im- proved our share of the television audience, made our op- erations more efficient, and significantly reduced our debt. We continued along this path over the decade that followed. We further strengthened our financial position, diversified our business beyond broadcast television, and solidified our posi- tion as the leading producer of Spanish-language content in the world with a number of key strategic partnerships. Along the way, we made successful inroads into the growing tele- communications segment, in particular cable and satellite television. Some of the results of the past decade were: Strengthening our financial position • Revenue rose from Ps.19.7 billion1 in 2001 to Ps.57.9 bil- lion in 2010, reflecting a ten-year compounded annual growth rate (CAGR) of 13 percent. • Consolidated operating income grew at a CAGR of 16 percent, from Ps.4.1 billion1 in 2001 to Ps.15.6 billion in 2010. • Our balance sheet strengthened. At the end of 2010, our net debt was only Ps.12.7 billion, and our net-debt-to-op- erating-income ratio was 0.8 times. In 2001, that number was 1.8 times. • Our market capitalization increased 2.3 times from US$5.5 billion in 20012 to US$14.4 billion in 20102. Over that same period we returned to our shareholders nearly US$2.2 bil- lion in dividends. Diversification beyond broadcast television Over the past decade we have undertaken significant ef- forts to diversify the company beyond our legacy broadcast television business while building on and staying connected to the true cornerstone of our success: our content. The results are already apparent. In 2001, advertising reve- nue was 71 percent of our total revenue, while in 2010 it was 42 percent of revenue. Mexico’s advertising industry has yet to expand as a result of an improving economy and of peo- ple’s increasing purchasing power. But in the meantime, we 1 Mexican pesos in real terms as of December 31, 2001, as reported. 2 As of December 31. 3 Source: Pyramid Research 2010E. 4 44 have diversified beyond advertising and positioned Televisa as a relevant and growing participant in telecommunica- tions, an industry that currently totals US$243 billion—five times the size of Mexico’s media industry. In the process of finding new and faster-growing sources of revenue, we have made many successful investments but also a few challenging ones. One is our gaming business, which has been confronted by legislative changes that have significantly increased taxes on gaming revenues. Nonetheless, we see value in our license and will continue to explore ways to profitably exploit it. And while La Sexta has succeeded operationally and delivers ratings above our initial expectations, it currently faces an economic crisis in Spain that has dampened its financial results. There is no doubt, however, that—throughout the entire process—we have taken important steps that have ex- panded the reach of our brand and our content, multiplying the value of both. In the pages that follow we mention ten key milestones, but these are only some of many milestones that have positioned Televisa to continue succeeding in the coming years. Building strong alliances While diversifying our businesses we worked hard to improve our operations. Our strategic alliances—in particular our part- nerships with two of the most important media companies in the US Hispanic market—are a key component of our ability to grow our audience with exciting and enduring program- ming, and to maximize the value that we derive from it. In 2008, for example, we partnered with Telemundo for the ex- clusive rights to distribute its content in Mexico for ten years, and we have an option to extend this agreement for an ad- ditional five years. In 2010 we strengthened our relationship with Univision through an agreement that brings significant upside poten- tial for both companies. We extended our program license agreement with Univision to at least 2025. The agreement increases the royalties from Univision and includes the pur- chase of a five percent equity interest and the issuance of debentures convertible into an additional 30 percent equity stake of Univision in the future, subject to existing laws and 5 5 regulations. We also have the option to acquire an addi- tional five percent equity stake in Univision. This agreement positions Televisa to participate in the most underutilized and fastest-growing media market in the United States. We will work with Univision in order for them to optimize the exploita- tion of our content in the United States. Cable and telecom: positioning for the long-term We continued to advance our cable and telecom strategy, which began in earnest with our acquisitions of Bestel and stakes in TVI and Cablemás over the past four years. In addi- tion, as part of a consortium, in 2010 we won the auction to exploit dark fiber owned by the Mexican Federal Electricity Commission (CFE). This is a significant step in our effort to be- come a relevant participant in Mexico’s fast-growing tele- com market. We are confident that our investments in these businesses are laying the groundwork for Televisa to benefit from a rapidly changing and growing industry. Together, our activities have laid a solid foundation for years of operational and financial success. Today, our operations, brands, and balance sheet are very strong. We are the pri- mary producer of audiovisual content in the Spanish lan- guage and a very relevant producer of linear channels for pay-television platforms. Through our multiple investments, Televisa is an important pay-television provider in Mexico and has one of the largest telecom infrastructures in the country. We are a company known for using our reach to contribute to the health, education, and cultural develop- ment of the communities that we serve. And we consistently maintain relatively low levels of debt and long maturities on our indebtedness. Even as we look back on a very successful decade, our eyes are fixed firmly on the future. Ever mindful of both challenges and opportunities, our vision is to: • remain the world’s foremost producer of Spanish-lan- guage content; • increase the reach of our linear pay-television channels around the world; • continue to play a role in the consolidation of Mexico’s cable industry; • participate in the opportunities presented by the growing wireless data industry; and • continue to capitalize on the emergence of new platforms that, through audience segmentation, present a highly frag- mented yet largely untapped advertising client base. We live in a multiplatform world, in which television content is viewed not only over televisions, but also on many other de- vices. Increasingly, people are viewing television content on the go. We are investing to ensure that our content reaches our audiences wherever they may be and on whatever de- vice they prefer. We have made significant progress. For ex- We further strengthened our financial position, diversified our business beyond broadcast television, and solidified our position as the leading producer of Spanish-language content in the world with a number of key strategic partnerships. ample, since 2007, all of our content is produced with an eye toward the multiplatform opportunities for distribution. This, together with the digitalization of a large portion of our library of content, means that we now have more than 50 thousand hours of content available for digital audiovisual distribution. The media and telecom environment is rapidly changing. We are confident that the steps we have taken during the last decade leave us well positioned to capitalize on the changes that are sure to come. We never tire of highlight- ing that our biggest competitive edge is the fact that we produce the majority of the content that we transmit, the same content that has delivered close to 70 percent of the audience for many years now. We produce it and therefore have the ability to make it available in the platforms chosen by our audiences. I want to thank our dedicated employees, management team, and board of directors for their hard work and our audiences and customers for their continuing loyalty. To our shareholders I want to extend my appreciation for your con- tinued confidence in our vision and our long-term prospects. We look forward to rewarding you well into the future. Emilio Azcárraga Jean Chairman of the Board and Chief Executive Officer 4 4 5 55 FINANCIAL HIGHLIGHTS In millions of Mexican pesos, except per-CPO amounts and shares outstanding. 2009 2010 Var.% Consolidated net sales Ps. 52,353 Ps. 57,857 10.5 Operating segment income 1 20,745 23,063 11.2 Segment margin 38.8% 39.0% Operating income 15,157 15,583 2.8 Margin 29.0% 26.9% Controlling interest net income Earnings per CPO 6,007 2.14 7,683 27.9 2.75 Shares outstanding at year-end (in millions) 327,231 325,023 Cash and cash equivalents at year-end Ps. 29,942 Ps. 20,943 (30.1) Temporary investments at year-end Long-term investments at year-end 8,902 3,996 10,447 17.4 3,858 (3.5) Total debt at year-end 43,416 47,965 10.5 Net debt position at year-end 576 12,717 2,107.8 1 Operating segment income (OSI) is defined as operating income before corporate expenses, depreciation and amortization. For a reconciliation of operating segment income with operating income, see Note 22 to our year-end consolidated financial statements. 6 Segment Net Sales Operating Segment Income TV Broadcasting Cable and Telecom Sky Other Businesses Publishing Programming Exports Pay-Television Networks TV Broadcasting Sky Cable and Telecom Programming Exports Pay-Television Networks Publishing Breakdown 39% 20% 19% 7% 5% 5% 5% Breakdown 46% 22% 17% 7% 7% 2% 7 5 8 7, 5 3 5 3 2 5 , 09 10 (millions of pesos) 3 6 0 3 2 , 5 4 7 , 0 2 09 10 (millions of pesos) Other Businesses reported a negative contribution to OSI of Ps.184mm during the year 2010. 7 THE LAUNCH OF FUNDACIÓN TELEVISA The first Televisa foundation was established in 1975 as Fundación Cultural Televisa and focused primarily on cultural initiatives. It closed in the late 1990s while Televisa underwent financial restructuring. To- ward the end of 2000, Emilio Azcarraga Jean, Televisa’s chairman and CEO, led an effort to reopen the foundation and to focus on social efforts, in particular education, nutrition, health, and housing, while continuing to promote Mexican culture. Today, Fundación Televisa (“Fundación”) reaches millions through Televisa’s media platforms and builds alliances with companies, non- governmental organizations, and Mexico’s government and people. Alliances play a key role in multiplying the social impact of Fundación’s work and base funding. Through these alliances the effective dollar- for-dollar match for Fundación’s programs over the past ten years has been 8.39 to 1. In 2010 alone, the match was 17.7 to 1 —that’s US$17.70 for every dollar that the foundation contributes itself. Over the years Fundación has worked hard to reach its goals and can now share with pride many of its success stories. For example, in 2006 Fundación launched Bécalos, a scholarship program, in part- nership with the Mexican Bank Association. By leveraging these alli- ances and Fundación’s access to media, Bécalos has raised more than US$110 million and provided more than 113,000 scholarships since 2005. These include 65,813 awards for teachers and school prin- cipals; 26,808 for high school students; and 21,011 bachelor awards, primarily for studies in engineering, science, and technology. Over the last decade, Fundación has improved the nutrition and health of more than 44,000 children in the poorest regions of Mexico. Access to housing has also been at the top of Fundación’s agenda. As of year-end 2010, Fundación had built 22,000 homes through an alliance structure similar to that of Bécalos. If compared with com- mercial homebuilders, Fundación and its allies would be the fifth- largest housing developer in Mexico. But its mission goes beyond education, health, and housing. Fun- dación’s relationship with Televisa enables it to raise awareness of so- cial issues and expand the impact of its campaigns. Televisa contrib- utes with advertising space for Fundación to promote and increase public action on health, such as breast cancer, and on environmen- tal issues, such as energy and water conservation. 8 Growing number of beneficiaries The launch of Fundación in 2001 was only the beginning. The number of people directly benefiting from Fundación’s programs has risen each year, from 100,339 in 2001 to 633,403 in 2010. Fundación will continue to invest resources in education and health while maintaining its commitment to the promotion of Mexican culture at home and abroad. 9 Solid financial position Even after our recent US$1.2 billion investment in Univision, our balance sheet remains strong. As of December 31, 2010, our consolidated net-debt position was approximately Ps.12.7 billion, and the average maturity of our debt was 14.3 years. In the years to come, we will continue to focus on maintaining the health of our balance sheet. 10 TELEVISA ISSUES US$300 MILLION, 30-YEAR, INVESTMENT-GRADE BOND In the late 1990s Televisa initiated the arduous but necessary process of repairing its finances and strengthening its balance sheet. Later, in 2000, Televisa successfully refinanced its debt, reducing borrowing costs, extending maturities, and replacing a portion of its US-dollar- denominated indebtedness with inflation-adjusted indebtedness. As a result of these steps, Televisa significantly improved its capital structure and reduced its currency risk. That same year, Moody’s gave Televisa’s debt an investment-grade rating. Because of the earlier work it had undertaken to refinance its debt and improve its financial structure, on March 11, 2002, Televisa was able to become the first Mexican company to issue a 30-year bond. The offering consisted of US$300 million in Senior Notes at a cou- pon of 8.50 percent. The proceeds were used to refinance a US$276 million bridge loan. Televisa was able to complete this transaction thanks to a strong credit profile and the market’s confidence in its long-term prospects. The bond received three awards, including one from Latin Finance. Shortly after the bond was issued, Fitch and Standard & Poor’s gave Televisa’s debt an investment-grade rating. These ratings made Televisa one of the first Mexican companies to receive investment- grade ratings from all three agencies, even before Mexican sover- eign debt was given an investment-grade rating. The bond offering was also significant because, up to its issuance, Mexican companies had no access to financing with maturities of this length. Since then, Televisa has continued to focus on improving the strength of its balance sheet. In November 2009, Televisa issued a US$600 mil- lion bond at a spread over U.S. Treasuries of only 245 basis points, the second-smallest spread of any Mexican issuer at the time. A year later, in October 2010, Televisa issued a Ps.10 billion bond with a coupon of 7.38 percent due in 2020 and a spread of only 135 basis points over Mexican Government Bonds. It was, at that time, the largest corporate fixed-rate debt issuance in the history of the Mexican market. 11 Solid and profitable growth As of December 31, 2010, Televisa reached a market capitalization of US$14.4 billion. As it looks forward to the next decade, Televisa will continue to focus on delivering solid, profitable growth and on maintaining a consistent and open channel of communication with the market in order to remain a relevant holding for the investor community. 12 TELEVISA CELEBRATES 10 YEARS ON THE NYSE Televisa was first traded on the Mexican stock exchange (BMV) in 1991. In June of 1993 the company’s GDS (Global Depositary Shares) began trading on the New York Stock Exchange (NYSE), and in 2003 the company celebrated the tenth anniversary of its listing. During the fourth quarter of 2003, Televisa was the fifth-largest Latin American GDS holding for institutional investors and the third most liquid among Mexican companies. Televisa’s average daily volume on the NYSE was more than 450,000 shares, and the average daily value traded was more than US$18 million. Since its listing, Televisa has focused on maintaining an ongoing dia- logue with the investor community—one that distinguishes itself for being an honest, open, and straightforward channel of communi- cation. Televisa has always taken very seriously its fiduciary duty to all company shareholders and recognizes the importance of under- standing the expectations of the investor community. In 2010, Televisa was the third most-liquid GDS holding among Mexi- can companies listed on the NYSE and the sixth most-liquid on the Mexican stock exchange. During 2010, the average daily volume on the NYSE was more than 2 million shares, or approximately US$50 million, representing more than 70 percent of the Company’s total trading volume. Listing on the NYSE allowed Televisa to access capital in order to fuel growth while improving efficiency and management stan- dards. Among other measures, Televisa took the necessary steps to strengthen corporate governance and meet the expectations of its shareholder base. 13 Quality and innovation Sky will continue to seek profitable growth by maintaining superior service and innovative offerings. Low pay-TV penetration in Mexico and Sky’s scale and nationwide distribution will continue to contribute to solid profit margins. Along the way, Sky will remain focused on upgrading systems and facilities, increasing satellite capacity, and expanding its high-definition (HD) offerings to subscribers. 14 SKY CONSOLIDATES ITS POSITION AS THE LEADING DTH PROVIDER IN MEXICO Sky began operations in 1997 and quickly became a very successful pay-TV provider in Mexico. From an early stage, it positioned itself as the pay-TV provider of choice for the same reasons that Sky is suc- cessful today: superior customer service, international sports content, and attractive pay-TV packages. In 2004, Sky’s competitor decided to exit the Mexican market and reached an agreement with Televisa to migrate its subscribers to Sky. That same year, Televisa began the consolidation of Sky into its finan- cial statements. Since then, Sky’s subscriber base has grown at a compounded an- nual rate of 20 percent, from close to 600 thousand in 2000 to more than 3 million at year-end 2010. Much of the initial growth in Sky origi- nated from a strategy that targeted the high-end and middle-market segments. Sky continues to serve this customer base with attractive premium packages and value-added services. Most recently, in the second quarter of 2010, Sky launched its suc- cessful HD package, further enhancing its premium pay-TV offerings. The profile of its customer base allows Sky to deliver one of the stron- gest ARPU, or average revenue per user, in Mexico. In 2009 Sky entered the lower-income market segment with pack- ages such as MiSky and VeTV. This strategic move allowed Sky to deliver growth of one million subscribers in 2010 alone. Furthermore, Sky was able to expand into this new segment of the market while maintaining strong margins. During 2010, at 45 percent, its Operating Segment Income margin was among the highest in the industry. In addition to Sky’s recent successful inroads into other demographics in Mexico, Sky has developed a solid presence in other Latin Ameri- can markets. In the aggregate for the Dominican Republic and Cen- tral America, Sky closed 2010 with 145 thousand subscribers. 15 INTERNATIONAL SUCCESS OF TELEVISA’S CONTENT In 2005 Rebelde (Rebel), a Telenovela that portrayed the life of teen- agers at a private boarding school in Mexico, became an interna- tional sensation. The success of Rebelde demonstrated Televisa’s ability to produce content that has universal appeal and can deliver value to all of Televisa’s business segments. Televisa first aired Rebelde in October of 2004. The characters were also members of the band RBD, which, together with Rebelde, quickly captured the imagination of youth throughout Mexico, Latin America, the United States, and many other countries around the world. Rebelde aired on Channel 2 in Mexico for three seasons through July 2006 for a total of 750 half-hour episodes. The Telenovela’s tremendous success spurred the production of additional content that crossed all of Televisa’s platforms. These other platforms included DVDs, pay-TV content, music production, nearly 240 live concerts, RBD magazine, SMS, ring tones, and licensing agreements for merchandising. Rebelde, the Mexican adaptation of Cris Morena’s original script, was not only a multiplatform success; it was also a global phenomena. Eventually, Rebelde was successfully transmitted in 65 countries. The popularity of Rebelde has endured: the program was aired in 2009 and 2010 via pay-TV platforms and on Televisa’s all-Telenovela channel, TLnovela. Today, Rebelde continues to draw an important audience. During 2005, Rebelde was just one success of many for Televisa’s Programming Exports business. That same year, other international hits included the reality series Bailando por un Sueño, of which we sold the format in Italy, France, and Peru, among others. Also, the Telenovela Rubí was televised in the United States, 16 countries in Latin America, the Philippines, Malaysia, Israel, and Eastern Europe, among other countries. Beyond selling its content worldwide, in 2008 Televisa began export- ing some of its most successful program formats through collabora- tive arrangements with producers in China, Brazil, and afterwards with France. These arrangements enabled Televisa to participate in high-potential advertising markets around the world. Televisa is suc- cessfully adapting its content to the languages and nuances particu- lar to each culture and in formats new to those markets. 16 Maximizing the value of our content In the years to come, Televisa will continue to focus on finding creative ways to maximize the value of its content and expertise and will seek new markets, new formats, and new business models. 17 At the forefront of technology Today Cablevisión is one of several cable assets that, together, have transformed Televisa into a relevant player in Mexico’s cable and telecom industry. In 2010, Cablevisión served a total of 1.2 million revenue-generating units (RGUs) in Mexico City. Of that number 669 thousand were video, 299 thousand broadband, and 190 thousand voice subscribers. With this and other efforts Cablevisión is working to remain at the forefront of technology and to strengthen its competitive position in this fast-growing industry. 18 CABLEVISIÓN DIGITALIZES ITS NETWORK In 2006 Cablevisión completed the conversion of its network from analog to digital format. This milestone enabled the company to provide a host of new services and pay-TV offerings, tapping its full potential in Mexico City and laying the groundwork to become one of the most technologically advanced players in Mexico’s cable and telecom market. Two years earlier, Cablevisión had begun the process of convert- ing its analog-format cable infrastructure to a fully digitalized net- work. The conversion positioned Cablevisión to combat what was then an intractable problem in Mexico: piracy. The conversion brought an immediate jump in the number of video subscribers, which grew on average 10 percent annually during the three-year digitalization period. More significant was the fact that the conversion, built with an invest- ment of US$133 million, allowed the company to offer high-value- added services such as HD TV and video-on-demand. During recent years, Cablevisión’s triple-play services have fueled the Company’s growth in Mexico’s cable and telecom market. In 2007, Cablevisión launched its first triple-play package, effectively transforming the company from a pay-TV provider into a telecom- munications company. In 2009 Cablevisión began a US$240-million project to deploy “fiber to the curb,” and in doing so to bring more and better services to the home. These include higher capacity and download speeds for high-speed internet, video-programming such as digital video re- cording, and HD TV. 19 TELEVISA CELEBRATES 50 YEARS OF THE TELENOVELA In 2007 Televisa celebrated 50 years of producing its popular Tele- novelas, captivating audiences throughout the Spanish-speaking world and beyond. The novela as a media format was first transmitted by radio in 1932. The first Telenovela produced in Mexico, Senda Prohibida, was broadcast in 1958. Since then, Televisa has produced more than 800 Telenovelas, and today the Telenovela remains one of our most suc- cessful formats. Unlike soap operas, which can run for decades, Telenovelas begin with a defined story line, are broadcast on a daily basis, and have an average run of 120 episodes. Televisa is able to produce approxi- mately ten to 15 Telenovelas every year, aided by an extensive library of scripts and a tremendous pool of talent, most of which is devel- oped in-house. The appeal of the Telenovela continues to grow in Mexico and abroad. As a matter of fact, three of the five most successful Tele- novelas ever were launched in the past five years. During 2007, for example, Destilando Amor achieved an average audience share of 46.8 percent and, during its final episode, garnered an impressive 61.1 percent audience share. Televisa repeatedly replicates successes such as these in the United States. That same year, Destilando Amor reached an audience of 12.7 million viewers and powered Univision to the nation’s number-one ranking among all adults in the coveted 18–34 and 18–49 demographics. Additionally, the final episode of Destilando Amor, transmitted by Univision, was the most-watched fi- nale of any Telenovela in Univision’s history1. Key to the success of Televisa is the consistency in the quality and appeal of the content that it produces. In 2006, the final episode of La Fea Más Bella garnered 43 rating points and an audience share of more than 62 percent. And last year, the final episode of Soy tu Dueña was the highest-rated show in Mexico, with 30.4 rating points. In all, during 2010, Televisa produced and transmitted all of the top- ten Telenovelas in Mexico, including the final episode of Hasta que el Dinero nos Separe, which garnered 28.4 rating points. The company’s skill in the production of Telenovelas has comple- mented Televisa’s success in the production of other popular formats, such as news and sports programs, reality shows, and series. 1 Among key demographics including all viewers 2 plus and adults 18 to 49. Source: Univision fourth-quarter 2007 earnings conference call transcript. 20 21 INVESTMENT IN CABLEMÁS ADVANCES TELEVISA’S CABLE AND TELECOM STRATEGY In 2006, Televisa invested US$258 million in long-term notes con- vertible into a 49 percent interest in Cablemás, the second-largest cable company in Mexico.1 In 2008 Televisa made an additional investment in Cablemás, and COFECO, Mexico’s competition commission, approved the conversion of those notes into equity. Televisa’s resulting 58.3 percent investment in Cablemás was a key step forward in the company’s strategy to become a relevant par- ticipant in Mexico’s cable and telecommunications industry. Televisa’s initial investment in Cablemás was one of the first in a series of steps to expand its presence in the rapidly growing cable and telecom industry. For example, in 2006, Televisa acquired a 50 percent interest in Televisión Internacional (TVI), which oper- ates in Monterrey and other parts of northern Mexico. And in 2007 Televisa took a majority stake in Bestel, a fiber-optic network that provides voice, data, and managed services to domestic and in- ternational carriers both in Mexico and the United States. In 2009, Televisa’s cable assets Cablevisión, TVI, and Cablemás collabo- rated with Megacable to offer YOO, a nationally branded, low- cost triple-play offering. And in June 2010, the Mexican Commu- nications and Transportation Ministry awarded to the consortium formed by Televisa, Telefónica, and Megacable a 20-year con- tract for the lease of a pair of dark-fiber wires held by the Mexican Federal Electricity Commission. As of today, Televisa has one of the largest telecom infrastructures in the country. Through its cable and telecom assets, it reaches sev- eral of the most important cities in Mexico with more than 6 million homes passed and has close to 50 thousand miles of fiber and co- axial cable around the country. In the aggregate, as of December 31, 2010, its three cable investments had more than 1.9 million video subscribers, 502 thousand voice subscribers, and 806 thousand data subscribers. Since the Cablemás investment in 2006, the total num- ber of RGUs has been growing at an average rate of 22 percent per year. For the coming years, Televisa expects this business to remain an important source of growth. 1 Based on number of subscribers and homes passed. 22 Attractive growth potential As Televisa continues to explore opportunities to expand its presence in cable and telecom, it will seek to play a role in the consolidation of cable in Mexico. The Company expects to benefit from economies of scale and the growth potential of this industry, and it will continue to work to improve its offerings, the quality of its service, and the profitability of its business. 23 Continuous growth The ongoing growth in pay-TV penetration in Mexico and abroad, the appeal of Televisa’s pay-TV channels, and its extensive advertising inventory in this platform will continue to position Televisa Networks as one of the fastest-growing segments in Televisa. 24 TDN LAUNCH ENHANCES TELEVISA’S PAY-TV OFFERING Televisa launched Televisa Deportes Network (TDN), its all-sports pay- TV channel, in 2009. The addition of TDN rounded out Televisa’s portfo- lio of pay-TV channels with one of the most important genres in terms of ratings and commercial opportunities. Immediately upon its launch, TDN became one of the highest-rated sports channels in Mexico.1 TDN enabled Televisa to build an audience different from viewers of its general entertainment content, and one that is particularly attractive to advertising clients. The dedication put into making TDN a success is evidence of the im- portance that Televisa gives to this media platform. Through Televisa Networks, we distribute a total of 18 pay-TV brands (15 owned and 3 represented) in more than 50 countries. Pay television provides Tele- visa with an opportunity to monetize much of the content that has already been produced and amortized while accessing a revenue stream different from advertising, namely subscription revenue. In addition, through this platform Televisa is able to monetize more ef- fectively its content abroad. Of the more than 26 million subscribers around the world, two thirds of them are outside Mexico. Today, Televisa’s pay-TV channels are top-ranked in many catego- ries. In 2010, the channels Televisa transmitted over pay-TV platforms in Mexico included five of the top-ten general entertainment channels; three of the top-five music/lifestyle channels; and three of the top-five movie channels. Advertising in this platform is becoming an important source of rev- enue. Pay-TV channels attract demographics different from those of broadcast television. As such, Televisa is able to gain access to a special set of clients that otherwise would have not advertised in over-the-air television, such as those that seek certain demographics or that target specific geographies. In addition to benefiting from a recurring stream of affiliate revenue, the growth of this platform has ef- fectively allowed Televisa to benefit from the fragmentation of adver- tisers, expanding its total client base. For Televisa Networks, advertising has grown at a CAGR of 43 percent2 since 2005. Today, it represents nearly 20 percent of the total revenues of this business segment. 1 As measured on platforms carrying both TDN and other sports channels. 2 Calculated with information as reported in each time period. 25 Increasing presence in the Hispanic market In 2010, Univision royalties accounted for US$156 million and constituted the majority of Televisa’s Programming Exports segment revenue. Under the new agreement, Televisa now benefits from the creation of value in Univision. Televisa invested US$1.2 billion in Univision for a five percent equity stake and debentures convertible into a 30 percent equity stake of Univision, subject to existing laws and regulations. The agreement also gives Televisa an option to acquire an additional five percent equity stake in Univision. In addition, the two companies signed a program license agreement for Mexico, under which Televisa received the right to broadcast Univision’s content in the country. The agreement expands and deepens the most important alliance in Spanish-language media today. It aligns the interests of both companies and empowers them to work together to enhance their presence and prospects in the growing U.S. Hispanic market. 26 TELEVISA SIGNS LANDMARK AGREEMENT WITH UNIVISION In December 2010 Televisa made a substantial investment in Univision and expanded and extended its long-term Program License Agreement. Since 1961, Televisa has successfully exported its content to the United States, initially through Spanish International Network, which in the 1980s changed its name to Univision. Televisa has also participated in the U.S. pay-TV market through TuTV, its joint venture with Univision, since 2002. This new agreement increases the exposure of Televisa’s content to the U.S. Hispanic market, giving Univision the right to carry it across all of its audiovisual platforms. The U.S. Hispanic market represents an important growth opportunity for Televisa, since a significant number of U.S. companies still do not advertise in this market—even though population is growing at four times the rate of the total U.S. population. In addition, nearly two-thirds of the country’s 50 million Hispanics are of Mexican heritage, and household consumption is 27 percent higher than consumption in Mexico. As a cultural demographic, U.S. Hispanics tend to retain cultural traditions and value systems, which partly explains why Televisa’s content travels naturally and successfully to the United States. This new agreement provides a mutually beneficial platform. For example, the agreement will enable them to capture the growth opportunity presented by offering new advertising alternatives to current and potential clients. The agreement will also extend the portfolio of pay-TV channels distributed in the United States and allow for the digital transmission of Televisa’s content. The agreement expands the royalty base and immediately increases the royalty payment to Televisa from 9.36 percent of television-only revenues to 11.91 percent of all audiovisual revenue. The agreement provides for a further increase, to 16.22 percent, beginning in 2018. 27 a decade at the FOREFRONT 2001 • The launch of Fundación Televisa • Pricing of US$300 million 10-year Senior Notes offering with an 8% coupon. • Salomé breaks rating records, delivering 25 rating points. 2003 • Televisa celebrates 10 years on the NYSE • Niña Amada Mía breaks rating records, delivering 26 rating points. 2005 • International success of Televisa’s content • The DirecTV subscriber migration process is completed, increasing Sky’s base to more than 1.25 million. • Cablevisión begins to offer DVR and HD services. • A US$600 million dollar 20-year Senior Notes offering is priced.4 2002 2004 2006 • Televisa issues US$300 • Sky consolidates its • Cablevisión digitalizes its million, 30-year, investment-grade bond position as the leading DTH provider in Mexico • Agreement to launch five Pay-TV channels in the U.S.1 • Cablevisión launches public offering on the Mexican stock exchange2. • Pay-TV Networks subscribers reach more than 10 million. • The corporate restructuring concludes, and a dividend policy3 is approved. • Amor Real ranks as the most- watched Telenovela of all time among US Hispanics. network • La Fea Más Bella breaks rating records, delivering 29 rating points. • Pay-TV Network subscribers reach more than 15 million. • Televisa acquires a 50% equity stake in TVI. in partnership with Univision. 49% of its capital. 1 2 3 Ps.0.35 per CPO annually. with a coupon rate of 6.625%. at 8.49% and due 2037. which represented an approximate 11.3% equity stake. 4 5 6 together with Megacable. 9 US$600 million aggregate principal amount due 2040. 10 11 at 7.38% and due 2020. 12 13 among Total Viewers 2+. formed by Telefónica, Televisa, and Megacable. 7 US$500 million aggregate principal amount of Senior Notes due 2018. 8 in Mexico and Latin America. 28 2828 29 29 2007 2009 • Televisa celebrates 50 years of the Telenovela • Pricing of Ps.4,500 million aggregate principal amount of Senior Notes,5 one of the few 30-year euro-peso deals. • Cablevisión launches telephony services and acquires Bestel. • Sky reaches 1.5 million subscribers and initiates operations in Central America and the Dominican Republic. • Televisa acquires Editorial Atlántida. • Televisa sells its shares and warrants6 in Univision for US$1,094.37 million. • TDN launch enhances • Television Broadcasting delivers revenue growth of 0.5%, while Mexican GDP decreases 6%. • Televisa expresses interest in participating in the mobile telecommunications market. Televisa’s Pay-TV offering • Pricing of Senior Notes9 at 6.625%, a 245 bp spread over Mexican treasuries, the second smallest spread of any Mexican issuer. • Our three cable investments10 launch YOO, a successful triple-play offering. • Sky launches VeTV and pays Ps.2.7 billion in dividends. • Cablevisión initiates “Grand Slam” project, taking fiber- to-the-curb and increasing homes passed, among other objectives. 2008 2010 • Investment in Cablemás advances Televisa’s cable and telecom strategy • Pricing of Senior Notes7 at 6%, the lowest coupon ever paid for any bond issued by Televisa. • Televisa becomes exclusive distributor of Telemundo content in all audiovisual platforms.8 • Pay-TV Networks subscribers reach more than 20 million. • Telehit beats MTV in Mexico national ratings and maintains leadership in the years to follow. • Televisa signs landmark agreement with Univision • Pricing of Ps.10,000 million aggregate principal amount of notes,11 the largest corporate issuance at a fixed rate in the local market, at a historically low interest rate. • Sky reaches 3 mm subscribers, of which 1 mm are added in 2010; launches IS-16 satellite; and starts to offer HD services. • Televisa launches ForoTV, a 24-hour news channel. • Pay-TV Networks subscribers reach more than 25 million. • The consortium12 receives a contract for the lease of a pair of dark-fiber wires held by the Mexican Federal Electricity Commission. • Publishing concludes the restructuring of the business and extends the presence of six brands to digital platforms. • Televisa produces its 800th Telenovela. • Soy tu Dueña becomes the most-watched Spanish- language Telenovela in US television history13. 28 28 29 2929 Grupo Televisa, S.A.B. BOARD OF DIRECTORS * The independence of Board members will be qualified by the Shareholders meeting pursuant to applicable law. Emilio Fernando Azcárraga Jean Manuel Jorge Cutillas Covani Enrique Krauze Kleinbort Chairman of the Board of Directors, President and Chief Executive Officer, and Chairman of the Executive Committee of Grupo Televisa. Member of the Boards of Directors of Banco Nacional de México and Univision Communications. First elected: December 1990 Alfonso de Angoitia Noriega Executive Vice President, Member of the Executive Office of the Chairman, and Member of the Executive Committee of Grupo Televisa. Member of the Boards of Directors of Grupo Modelo and Univision Communications. Former Chief Financial Officer of Grupo Televisa. First elected: April 1998 Pedro Carlos Aspe Armella Chairman of the Board of Directors and CEO of Protego Asesores. Co-Chairman of Evercore Partners. Member of the Board of Directors of The McGraw-Hill Companies. First elected: April 2003 Julio Barba Hurtado Secretary to the Audit & Corporate Practices Committee of Grupo Televisa. Legal advisor to Grupo Televisa. First elected: December 1990 José Antonio Bastón Patiño President of Television and Content and Member of the Executive Committee of Grupo Televisa. Alternate Member of the Board of Directors of Univision Communications. Former corporate Vice President of Television, Vice President of operations, and former general director of programming of Grupo Televisa. First elected: April 1998 Alberto Bailleres González President of Grupo Bal. President of the Boards of Directors of Industrias Peñoles, Fresnillo PLC, Grupo Nacional Provincial, Grupo Profuturo, GNP Afore, GNP Pensiones, Valores Mexicanos Casa de Bolsa, Grupo Palacio de Hierro and Member of the Boards of Directors of BBVA Bancomer, Fomento Económico Mexicano, Grupo Kuo, Grupo Dine and President of the Board of Directors of Governors of ITAM. First elected: April 2005 Former President and Chief Executive Officer of Bacardi Limited. Director and Partner of Editorial Clío Libros y Videos First elected: April 1994 First elected: April 1996 José Antonio Fernández Carbajal Michael Larson Chairman of the Boards of Directors and Chief Executive Officer of Fomento Económico Mexicano and Coca-Cola FEMSA. Vice Chairman of the Board of Directors of Heineken Holding and Chairman of the Americas Committee of Heineken. Vice Chairman of the Board of Directors of ITESM and Member of the Boards of Directors of Grupo Financiero BBVA Bancomer, Industrias Peñoles, Grupo Bimbo, Concesionaria Vuela Compañía de Aviación, Xignux, US-Mexico Foundation and Cemex. Chief Investment Officer of Cascade Investment, LLC and the Bill and Melinda Gates Foundation Trust. Member of the Boards of Directors of Hamilton Lane Advisors, LLC, Republic Services, and AutoNation. Chairman of the Board of Directors of Trustees for the Western Asset/Claymore Inflation Linked Securities & Income Fund and the Western Asset/Claymore Inflation-Linked Opportunities & Income Fund. First elected: April 2009 First elected: April 2007 Germán Larrea Mota Velasco Carlos Fernández González Chairman of the Board of Directors and Chief Executive Officer of Grupo Modelo. Member of the Board of Directors of Emerson and Member of the International Counsel Board of Banco Santander. Chairman of the Board of Directors, President and Chief Executive Officer of Grupo México. Chairman of the Boards of Directors of Southern Copper Corporation and Grupo Ferroviario Mexicano. First elected: April 1999 First elected: July 2000 Lorenzo Alejandro Mendoza Giménez Bernardo Gómez Martínez Executive Vice President, Member of the Executive Office of the Chairman, and Member of the Executive Committee of Grupo Televisa. Former president of the Mexican Chamber of Television and Radio Broadcasters and Deputy Director to the president of Grupo Televisa. CEO and Member of the Board of Directors and Executive Committee of Empresas Polar Member of the Board of Directors of Junior Achievement, Venezuela-USA Entrepreneurs Council, Group of 50, The Latin America Business Council, Board of Directors of Trustees for the Metropolitana University and the Sloan School of Management (MIT). Member of the WEF, YGL and Ashoka fellow. First elected: April 1999 First elected: April 2009 Claudio X. González Laporte Alejandro Quintero Iñiguez Chairman of the Board of Directors of Kimberly-Clark de México. Member of the Boards of Directors of Grupo Alfa, Grupo Carso, Grupo México, Grupo Financiero Inbursa and Mexico Fund. Director Emeritus General Electric. Chairman of the Strategy Committee of the Mexican Business Council. First elected: April 1997 Roberto Hernández Ramírez Chairman of the Board of Directors of Banco Nacional de México. Member of the Boards of Directors of Grupo Financiero Banamex Accival, the Nature Conservancy and World Monuments Fund. Corporate Vice President of Sales and Marketing and Member of the Executive Committee of Grupo Televisa. Former advisor to former President Ernesto Zedillo. Shareholder of Grupo TV Promo. First elected: April 1998 Fernando Senderos Mestre Chairman of the Boards of Directors and President of the Executive Committee of Desc,Dine, and Grupo Kuo. Member of the Boards of Directors of Grupo Carso, Grupo Nacional Provincial, Kimberly Clark de México, and Industrias Peñoles. First elected: April 1992 Francisco José Chévez Robelo First elected: April 1992 Enrique F. Senior Hernández Certified Public Accountant. Cofounder of the Mexican tax firm Chevez, Ruiz, Zamarripa y Cia., S.C. Currently a retired partner of that firm. Chairman of the Audit & Corporate Practices Committee of Grupo Televisa. First elected: April 2003 * Appointed in our last Shareholders meeting which took place in April 2010. 4040 Managing Director of Allen & Company LLC. Member of the Boards of Directors of Coca-Cola FEMSA, Cinemark, FEMSA and Univision Communications. First elected: April 2001 PB In the past decade, Televisa has achieved several milestones that have enabled the Company to create value through the production and distribution of its content and to strengthen its position as a leader in its industry. Today Televisa is well positioned to identify and quickly respond to opportunities and events in the rapidly growing and ever-changing global media and telecommunications market. In the coming years, Televisa will build on these milestones to continue benefiting its clients, shareholders, employees, and the communities in which it operates. COMPANY PROFILE Grupo Televisa, S.A.B., is the largest media company in the Spanish-speaking world based on its market capitalization 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, cable television and telecommunication services, magazine publishing and distribution, radio production and broadcasting, professional sports and live entertainment, feature-film production and distribution, the operation of a horizontal internet portal, and gaming. CONTENTS TELEVISA AT A GLANCE 02 / LETTER TO SHAREHOLDERS 04 / FINANCIAL HIGHLIGHTS 06 A DECADE AT THE FOREFRONT 08 / MANAGEMENT´S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 30 / BOARD OF DIRECTORS 40 / FINANCIAL STATEMENTS 41 INVESTOR INFORMATION Common stock data Investor relations CPOs (Certificados de Participación Ordinarios) of Grupo Televisa, S.A.B., comprise 117 shares each (25 Series A Shares, 22 Series B Shares, 35 Series D Shares and 35 Series L Shares), and are listed and admitted for trading on the Mexican Stock Exchange (Bolsa Mexicana de Valores, S.A.B. de C.V.), under the ticker symbol TLEVISA CPO. The GDRs (Global Depositary Receipts), each representing five CPOs, are listed on the New York Stock Exchange and trade under the ticker symbol TV. Dividend policy Decisions regarding the payment and amount of dividends are subject to approval by a majority of the Series A Shares and Series B Shares voting together, generally, by recommendation of the board of directors, as well as to the approval of a majority of the Series A Shares voting separately. On March 25, 2004, the Company’s board of directors approved a dividend payment policy pursuant to which the Company shall pay an annual ordinary dividend of Ps.0.35 per CPO. SEC filings Televisa files and submits annual reports to the US Securities and Exchange 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 representatives 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. 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 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, 3er piso 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 The Bank of New York BNY Mellon Shareowner Services PO Box 358516 Pittsburgh, PA 15252-8516 (201) 680-6825 . x m m o c . i n g i s : n g i s e D This annual report is available in both English and Spanish. April 2011. Este informe anual está disponible tanto en español como en inglés. Abril 2011. II T R O P E R L A U N N A 0 1 0 2 A S I V E L E T O P U R G • T N O R F E R O F e h t t a e d a c e d a www.televisa.com www.televisair.com a decade at the FOREFRONT GRUPO TELEVISA 2010 ANNUAL REPORT 200020052001Today, Fundación Televisa (“Fundación”) reaches millions through Televisa’s media platforms and builds alliances with com-panies, non-governmental organizations, and Mexico’s government and people. Al-liances play a key role in multiplying the social impact of Fundación’s work and base funding.innovation20032004In 2000, Televisa successfully refi-nanced its debt, reducing borrow-ing costs, extending maturities, and replacing a portion of its US-dollar-denominated indebtedness with inflation-adjusted indebted-ness. As a result of these steps, Televisa significantly improved its capital structure and reduced its currency risk. That same year, Moody’s gave Televisa’s debt an investment-grade rating.2002yeardecade2009200520082006In 2006 Cablevisión completed the conversion of its network from analog to digital format. This milestone enabled the company to pro-vide a host of new services and pay-TV offer-a great year2001200020052001innovation200320042002yeardecade20092010200720052008the largest media company in the Spanish-speaking worldforefrontANNUALgrowingin the coming years”telecommunicationsTelevisa20072006In 2007 Televisa celebrated 50 years of producing its popular Telenovelas, capti-vating audiences throughout the Spanish-speaking world and beyond.Televisa launched Televisa Deportes Network (TDN)TELEVISA SIGNS LANDMARK AGREEMENT WITH UNIVISIONAs of today, Televisa has one of the largest telecom in-frastructures in the country. Through its cable and telecom assets, it reaches several of the most important cities in Mexi-co with more than 6 million homes passed and has close to 50 thousand miles of fiber and coaxial cable around the country.annual reportTelevisa will build on these milestonestelevisioncontents
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