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TEGNA Inc.BIG CHALLENGES. BIGGER OPPORTUNITIES. 2017 ANNUAL REPORT Contents 02 Televisa at a glance 04 Letter to Shareholders 08 Financial highlights 10 Cable 12 Sky 14 Content 14 Advertising 15 Network Subscription 15 Licensing and Syndication 16 Other Businesses 18 Univision 20 Fundación Televisa 22 Management’s Discussion and Analysis of Financial Conditions and Results of Operation 30 Board of Directors 32 Financial Statements Televisa is a leading media company in the Span- ish-speaking world, an important cable operator in Mexico and an operator of a leading direct-to- home satellite pay television system in Mexico. mately 36% on a fully-diluted, as-converted basis of the equity capital in Univision Holdings, Inc., the controlling company of Univision. Televisa distributes the content it produces through several broadcast channels in Mexico and in over 50 countries through 26 pay-tv brands, and television networks, cable operators and over-the-top or “OTT” services. In the United States, Televisa’s audiovisual content is distributed through Univision Communications Inc. (“Univision”) the leading media company serv- ing the Hispanic market. Univision broadcasts Televisa’s audiovisual content through multiple platforms in exchange for a royalty payment. In addition, Televisa has equity and warrants which upon their exercise would represent approxi- Televisa’s cable business offers integrated services, including video, high-speed data and voice services to residential and commercial customers as well as managed services to domestic and international carriers through five cable Multiple System Opera- tors in Mexico. Televisa owns a majority interest in Sky, a leading direct-to-home satellite pay television system in Mexico, operating also in the Dominican Republic and Central America. Televisa also has interests in magazine publish- ing and distribution, radio production and broad- casting, professional sports and live entertain- ment, feature-film production and distribution, and gaming. 1 THIS IS Televisa Our company at a glance CONTENT CABLE In 2017, Televisa produced more than 87,000 hours of content for free-to-air and pay-TV. Through seven operations in Mexico, Televisa is an import- ant player in the country’s Cable industry. Contribution to Sales: 34.8% Contribution to OSI*: 34.2% Contribution to Sales: 33.9% Contribution to OSI*: 37.5% ADVERTISING Televisa operates four broadcast channels—2, 4, 5, and 9— in Mexico City and complements its network geographic coverage through affiliated stations throughout the country. Televisa also sells advertising on its pay-TV networks and online properties. Contribution to Sales: 21.2% NETWORK SUBSCRIPTION Televisa produces and distributes 26 pay-TV brands and 69 feeds. In the United States, the Company distributes its pay- TV channels through Univision. In 2017, Televisa produced more than 25,000 hours of content for pay-TV networks. 44+ million pay-TV subscribers Contribution to Sales: 4.2% LICENSING & SYNDICATION Televisa exports its programs and formats to television net- works around the world. In the United States, Televisa dis- tributes its content through Univision under a Programming License Agreement (“PLA”). This year, the PLA resulted in roy- alties to Televisa of U.S.$313.9 million dollars. The royalty rate is set to increase from the current 11.84% on much of Univision’s audiovisual revenues to 16.45% in 2018. Approximate reach: 80+ countries worldwide Contribution to Sales: 9.4% Televisa operates through two business divisions: The Multiple System Operators (“MSOs”) division which offers video, high-speed data, and voice services to resi- dential and commercial customers, including small- and medium-sized businesses and hotels. The Enterprise division which provides telecommunica- tions services, including voice, data, and managed services, to domestic and international carriers and to enterprise, corporate, and government customers in Mexico and the United States. The MSOs footprint provides Televisa with the ability to leverage an extended network across our coverage areas, including cities such as Mexico City, Monterrey, Tijuana, Zapopan, Querétaro, Cancún, Mérida, Mexicali, and San Luis Potosí, among others. Televisa’s network consists of more than 85,000 kilometers of coaxial cable and more than 35,000 kilometers of fiber optic. RGUs (Includes Cablevisión, Cablemás, Cablecom, Telecable, and TVI) Video 4,185,150 Broadband 3,797,336 Voice 2,121,952 Total RGUs 10,104,438 2 Segment Net Sales (%) 34 Cable 35 Content 21 Advertising 10 Licensing and Syndication 4 Network Subscription Revenue 23 Sky 8 Other Business Operating Segment Income (%) 38 Cable 34 Content 27 Sky 1 Other Business SKY Televisa owns a 58.7% interest in Sky, a leading direct-to- home satellite television system. Sky operates in Mexico, Central America, and the Dominican Republic. Subscriber base: 8 million Contribution to Sales: 22.7% Contribution to OSI*: 27.0% OTHER BUSINESSES Publishing: The leading Spanish-language magazine pub- lisher; published 110 titles in 2017. Gaming: Casino sites and online lottery business. Soccer: A first division soccer team of the Mexican league and owner of Mexico’s Azteca stadium. Radio: Network of owned radio stations, complemented by affiliated radio stations owned by third parties. Feature-Film Distribution: Distributes movies in Mexico and Latin America. Publishing Distribution: Distributes publications in Mexico and Latin America. Contribution to Sales: 8.6% Contribution to OSI*: 1.3% UNCONSOLIDATED BUSINESSES Univision: Televisa holds a 10% direct economic interest in Univision, the leading Spanish-language media company in the United States and the number five network regard- less of language. Upon the exercise of the warrants, Televi- sa will hold approximately 36% of the equity capital of Uni- vision on a fully-diluted, as-converted basis. Ocesa Entretenimiento: Televisa holds 40% equity inter- est in OCESA, a live-entertainment company in Mexico, Central America and Colombia. The Company organized 2,986 events in Mexico and Colombia in 2017. The most successful tour in 2017 was Soda Stereo’s Séptimo Día by Cirque du Soleil. * Operating segment income (OSI) is defined as operating income before corporate expenses, depreciation, and amortization, and other expense, net. For a reconciliation of total operating segment income with consolidated operating income, see Note 25 to our year-end consolidated financial statements. 3 DEAR Shareholders: In our cable segment, we closed the year with over 10 million revenue generating units, including 4.2 million video subscribers, 3.8 million data subscribers, and 2.1 million fixed voice subscribers. In 2017 I concluded 20 years as CEO of Televisa Back in 1997, Televisa looked much different than it does today. The company was highly leveraged and held a number of non-strategic assets. I assembled a solid team of executives, and together we succeeded in greatly strengthening the Company’s financial position and streamlining the business. We have fundamentally repo- sitioned and reshaped Televisa so that it is now a major cable operator in Mexico, a leader in direct-to-home sat- ellite pay television systems in Mexico, and one of the most preeminent media companies in the Spanish-speak- ing world. While we continually remain focused on im- proving our business and performance, we have made great strides over the last 20 years. Over the past 20 years we have greatly evolved and diversified the business Televisa has become a much stronger company, in large part, by diversifying away from the traditional advertising business, which in 2017 accounted for less than 22% of consolidated revenues. We are proud of this decision given that the traditional advertising business is now under great pressure globally. In the process of diversification, we took several key steps, including assembling two additional suc- cessful core businesses. First, we now have one the most attractive portfolios of ca- ble assets in the region. Our cable operation accounts to- day for 21% of video customers, 22% of fixed data custom- ers, and 11% of fixed voice customers in Mexico. Second, we built a highly profitable satellite pay TV opera- tor (Sky) with eight million customers across the country. This means that one in every four homes in Mexico is a cus- tomer of Sky. Emilio Azcárraga Jean Chairman of the Board of Grupo Televisa 4 Third, we greatly increased the sales of our content beyond our domestic market. In 2017, close to one third of our content revenue came from geographies other than Mexi- co. Key to this strategy was the renegotiation of our long- standing program licensing agreement with Univision. Most remarkably, we were able to achieve all of this while maintaining a healthy balance sheet. As of year-end 2017, our ratio of net debt to operating segment income stood at 2.1 times, our rating is investment grade, and the average maturity of our debt is over 15 years. Televisa holds one of the most attractive portfolios of cable assets in the region Growth in our cable division resumed in a very healthy manner in the latter part of 2017, following a sharp slow- down earlier in the year. Most of the temporary slowdown resulted from the need to integrate our five cable compa- nies operationally and from disruption caused by steps we took to dramatically improve our service given the highly competitive nature of the industry. We are pleased with the turnaround of this business. We closed the year with over 10 million revenue generating units, including 4.2 million video accounts, 3.8 million data accounts, and 2.1 million fixed voice accounts. There is plenty of room for our cable business to grow fur- ther, particularly in data services. Over the past few years we have made significant investments in infrastructure, and our network of over 122 thousand kilometers across the country now reaches close to 14 million households. Thanks to the rebuilding of a large part of our network, 12 million of those households can now subscribe to data speeds of at least 100 megabits if they desire so. 5 With data penetration in the country at close to 52%, the opportunity is very attractive. In addition, the pool of DSL customers, at close to 40% of all existing data customers in the country, is large, providing even further opportunities for growth. Sky has transformed itself into one of the most successful satellite pay TV operators Sky, which started as a premium pay TV service accessible to a high-end customer base, began its transformation in 2010 with the launch of a pre-paid pay TV offer. Since then, Sky has added close to six million customers reaching a to- tal of eight million by year-end 2017. In the process, Sky has developed an unparalleled sales infrastructure and a nationally recognized and highly reputable brand. Today, Sky has a large and loyal base of pre-paid custom- ers, who can access their favorite programming at afford- able rates. It also has a resilient, high-end base of custom- ers who greatly value Sky’s premium sports offerings and rich content offerings. The turnaround of our Content business is underway The content industry has become much more competitive, and our audiences and advertising customers are more demanding than ever. As a result, our content business had to modernize both its product offering and its adver- tising sales practices. During 2017, we took dramatic steps towards fulfilling these two goals. We have new leadership in the production and program- ming of our content. We are listening more closely to our audiences in order to better align our content offer with their viewing preferences, and we are marketing our pro- ductions better across our many media platforms. As a re- sult, during 2017 we made significant progress by increas- ing ratings on our flagship network by double-digits, even as we reduced costs and expenses during the year by ap- proximately $800 million pesos. 6 2018 marks the beginning of a new phase for Grupo Televisa Like other companies in our industry, we continue to face many challenges, both in terms of enhancing our opera- tions and generating shareholder value, but we are starting 2018 on very solid footing. We have great momentum in our cable division, a successful satellite pay TV operation, and a strong commitment to complete the turnaround of our advertising sales business. We are fully confident that Alfonso and Bernardo, our two new co-CEOs, are well positioned to meet these challeng- es, while capitalizing on a wide range of new and compel- ling opportunities. We will continue to evaluate rigorously our portfolio of assets, with our focus always on the best interests of our shareholders. Thank you, I thank our employees and executives for their hard work and commitment to Grupo Televisa, our Board members for their many contributions and guidance, our audiences and customers for their loyalty, and our shareholders for choosing to be part of Grupo Televisa. Emilio Azcárraga Jean Chairman of the Board of Grupo Televisa Properly monetizing the strong viewership of our content is a priority for Televisa. As a result, and following interna- tional best practices, we have changed our advertising sales mechanism from a cost-per-spot to one that allows us to price our advertising based on ratings delivered. This new mechanism will give our clients a performance guar- antee and help them better target the specific audiences they seek. And for Televisa, the new mechanism will allow us to use our extensive advertising inventory more effec- tively, while giving us increased visibility into the outlook of our advertising business. The broadcasting industry will continue to face structural challenges around the globe. Today, we continue to believe that broadcast advertising is the most effective manner to monetize our content in Mexico. That may change in the future, therefore we are closely following the evolution of viewing preferences and experimenting with other distri- bution platforms. In the meantime, we are keenly focused on delivering strong ratings which, together with our new pricing mechanism, should help bring stability back to our advertising sales business. We continue making progress on the ESG front On January 31st, 2017, once again we were selected to be part of the Sustainability Index of the Mexican Stock Ex- change and S&P Among other actions, we have committed to join the United Nations Global Compact, the world’s largest corporate sustainability initiative, and to make its Ten Principles part of our strategy and daily actions. Finally, the Mexican Center for Philanthropy (Cemefi) and the Alli- ance for Corporate Social Responsibility (AliaRSE) have granted Televisa with the ESR® 2018 Socially Responsible Company Distinction. We will continue to manage corporate governance, social and environmental risks in order to protect the value of our brand and the company’s and shareholders’ interests, strengthen our performance and timely respond to the is- sues relevant to all of our stakeholders. 7 FINANCIAL Highlights . 8 3 7 . 3 9 6 . 6 2 6 . 9 7 5 . 4 2 5 . 0 8 4 . 9 7 3 . 6 1 4 Consolidated net sales billion of pesos (as reported) . 3 6 9 . 3 4 9 . 1 8 8 . 1 0 8 8.6% Compound Annual Growth Rate 06 07 08 09 10 11 12 13 14 15 16 17 . 4 8 2 . 9 9 2 . 4 5 2 . 1 3 2 . 7 0 2 . 9 9 1 . 1 8 1 . 9 6 1 . 9 8 3 . 5 7 3 . 7 5 3 . 3 2 3 Operating segment income billion of pesos (as reported) 7.5% Compound Annual Growth Rate 06 07 08 09 10 11 12 13 14 15 16 17 8 Consolidated net sales $94,274 $96,287 Operating segment income1 37,457 38,923 -2.1% -3.8% 2017 2016 Var. % Segment margin Operating income Margin Net income attributable to stockholders of the Company 38.4% 39.2% 14,243 16,598 -14.2% 15.1% 17.2% 4,524 3,721 21.6% Earnings per CPO 1.54 1.28 Shares outstanding at year-end (in millions) Cash and cash equivalents at year-end 342,337 341,268 $38,735 $47,546 -18.5% Temporary investments at year-end 6,014 5,498 9.4% Long-term investments at year-end 7,585 6,792 11.7% Total debt at year-end 122,300 126,998 Net debt position at year-end 79,273 78,406 -3.7% 1.1% In millions of Mexican pesos, except per CPO amounts and shares outstanding. 1 Operating segment income (OSI) is defined as operating income before corporate expenses, depreciation and amortization and other expense, net. For a reconciliation of operating segment income with operating income, see Note 25 to our year-end consolidated financial statement. 9 . 1 0 1 7 9 . 0 9 . 9 6 . 14 15 16 17 RGUs millions During 2017, the Cable segment surpassed 10 million Revenue Generating Units, improving ser- vice quality and offering attractive video, voice and data packages. Televisa’s Cable business includes five cable compa- nies: Cablevisión, Cablemás, Cablecom, Telecable, and TVI. Our Cable business offers cable and con- vergent services across 29 states in Mexico, cover- ing the main metropolitan areas of the country. Additionally, our Enterprise division offers telecommunications services through a network of more than 31,000 kilometers of fiber to domestic and international car- riers and to enterprise, corporate, and government customers in Mexico and the United States. Our network covers sever- al important cities and economic regions in Mexico, and connects with the United States, enabling us to provide high capac- ity connectivity between the United States and Mexico. During 2017 we continued upgrading our network, which now reaches close to 13.8 million homes in the country, to achieve the cable industry standard, combining traditional hybrid fiber-coaxial, fiber deep, and deployments of Gigabit Passive Optical Networks (GPON). 10 +10 million RGUs Internet Protocol Access and Large Scale Core net- works are in place and Voice over IP Cores was placed in several regions to support telephony traf- fic for residential and enterprise customers. We are now able to deliver up to 100 megabits of speed per second in the very large majority of homes passed. During 2017, we continued improving our double and triple-play packages that include unlimited telephony to almost every corner of the globe, 20 Mbps of inter- net speed and one of the most advanced video of- fers. At the end of 2017, our offer was available in the most important cities throughout Mexico. Revenues for our Cable segment grew by 3.6% in 2017, adding over 374,000 revenue generating units. As of Decem- ber 31, 2017, Televisa provided video services to 4.2 million subscribers, broadband services to 3.8 million sub- scribers, and voice services to 2.1 mil- lion subscribers throughout Mexico. CABLE 11 Sky is our direct-to-home (DTH) satellite television operation. It reaches every corner in Mexico, plus the Dominican Republic and Central America. Sky offers pay-TV packages, including exclusive con- tent that ranges from sports to concerts and special events. With 8 million customers, Sky remains as one of the most successful pay- TV operations in the region, In May 2017, Sky launched VeTV 15-day, which is a product that offers our prepaid customers the possibility of watching our programming for a period of 15 days. SKY 12 Additionally, in June 2017, Sky launched HD packages for VeTV, a new product that complements our High Definition offer and targets households willing to spend more on TV ser- vices with better definition. We believe that, as the economy progresses, consumers will increasingly demand premium pay-TV offerings that Sky can deliver. In September 2017, Sky launched Blue Telecomm Sky’s Broadband and Inter- net services to provide addi- tional services primarily to our existing subscriber base. 0 8 . 0 8 . . 3 7 6 6 . 20% HD packages subscribers Sales increased by 1.2% in 2017 while the num- ber of customers remained close to 8 million. During 2017, the number of clients that sub- scribe to a high-definition package grew by 20% and revenue per customer increased by 6%. 14 15 16 17 Subscribers millions 13 CONTENT Advertising In 2017, we successfully migrated our advertising customers to the new sales model starting 2018. With four free-to-air channels in Mexico City —2, 4, 5, and 9— which Televisa oper- ates with a combination of owned and affili- ated network stations throughout Mexico, a strong portfolio of pay-TV networks, and new media platforms, Televisa is one of the largest providers of advertising alternatives in the Mexican market. 21.2% Advertising revenues represent 60.9% of our Content revenues and 21.2% of our segment net sales. During 2017, advertising sales posted a decrease of 10.8% for specific rea- sons related to the way in which we used to sell advertising. Advertising sold in our non-cancellable upfront, which typically accounts for the large majority of advertising revenue in a given year, was priced per spot based on, among other things, prior years’ ratings. The pricing of such inventory remained fixed regardless of any change in ratings when transmitted. As a result of the ratings increase during 2017, clients achieved their target number of eyeballs with a smaller expense and were practically absent from the scatter market. We started 2018 having successfully migrated our clients to a pricing mechanism based on a cost-per-rating-point basis rather than on fixed pricing scheme. All advertisers will now be billed based on actual gross ratings points delivered. . 5 5 2 . 0 3 2 . 2 3 72 0 2 . 14 15 16 17 Advertising revenues billion of pesos (as reported) 14 Network Subscription Revenue Licensing & Syndication Televisa Networks is one of the most successful producers and distributors of content for pay-TV platforms in Mexico. We are one of the world’s leading producers of original Spanish-lan- guage content for pay-TV platforms. We commercialize 26 pay-TV brands through 69 domestic and interna- tional feeds, which reach over 45 mil- lion subscribers around the world. Over the years we have assem- bled a portfolio of channels for pay TV that improve every day, and that capture many of the viewers that migrate from free to air networks to pay-TV. . 4 14 4 . 25,000 In 2017, Televisa produced over 25,000 hours of content for our pay-TV networks. Tele- visa’s pay-TV networks contin- ue to be among the most watched networks on pay-TV platforms in Mexico. . 6 3 9 2 . 14 15 16 17 Network Subscription Revenues billion of pesos (as reported) Network Subscription Revenue decreased by 7.8% in 2017. The full year decrease is ex- plained by the fact that a competitor is no longer carrying our pay TV networks. Televisa keeps successfully exporting innovative content around the world as well as creating alliances with new partners. In the United States, through our Pro- gramming License Agreement (“PLA”) with Univision, we reach a very import- ant demographic in the Spanish speak- ing world: the Hispanic market. U.S.$313.9 million Our PLA grants Univision exclusive access to most of our audiovisual content in any format for distribution in the United States. In exchange, we receive a royalty payment of 11.84% from Univision on all its audiovisual revenues. In 2017, we received U.S.$ 313.9 million dollars in the form of royalties from Univision. The royalty rate increased to 16.13% starting on January 1, 2018. The royalty rate will again increase to 16.45% starting on June 1, 2018. Televisa’s content has been distributed globally for many decades and has an enduring base of followers beyond Mexico and the United States. During 2017, we ex- ported over 85 thousand hours of our original pro- gramming to 84 countries. 15 15169.29.17.76.51417Licensing & Syndicationbillion of pesos (as reported) Gaming Publishing During 2017, Televisa published 110 magazine titles in 14 countries. These titles cover a wide variety of consum- er interests from health, beauty, fash- ion, and pop culture, to technology, travel, sports, finance and science. Some of our titles aim to capitalize on the success of Televisa’s audiovisual content and to engage with our audi- ences at a deeper level. As a result of structural challenges in the publishing industry, in- cluding shifts in reading habits, wider availability of online con- tent, higher penetration of fixed and broadband accesses, and growing competition from emerging platforms, we continued streamlining our operations, taking advantage of synergies that exist in the development of content and our back office activities, including purchasing, printing, and distribution. During 2017, we were able to reap the benefits of having embarked in mid-2016 in a cost-structure rationalization initiative without sacrificing sales and product development. We also developed capabilities to start monetizing short and long-format videos based on our branded events and experiences. During 2017, we continued in- creasing our presence in the comics market. We started nego- tiating several new licenses worldwide that will allow us to expand our comics portfolio sig- nificantly during 2018. Having concluded our cost- rationalization process in Mexico, we embarked in aggressively restructuring our international operations, divesting our operations in Argentina and Peru. PlayCity Casino and PlayCity Apuestas, in- clude 17 sites across the country with 6,500 Electronic Gaming Machines and the new sports betting website. Both business lines have the most modern video reels and bingo games, as well as the widest sports betting offer in Mexico. 2017 was the 8th consecutive year of EBITDA growth. Visits to our casinos are at all-time high due to our new customer service and marketing quality standards. PlayCity Apuestas was designed to comply with most of the e-commerce best practices and standards, just in time to be the biggest legal online betting web- site, while replacing our legacy lottery products. 16 Radio As an important participant in Span- ish-language radio in Mexico, Televisa broadcasts news, music, sports and talk show programming through a network of 83 radio stations. Of these stations, 17 are owned and 66 are affiliates owned by third parties. Our radio stations use various program formats that tar- get specific audiences and advertisers, and cross-promote talent, content, and programming of our other business- es, including television, sports, and news. We produce some of Mexico’s top-rated radio stations, W Radio (News- talk), W Deportes (Sports), Ke Buena (Mexican music), Los 40 (Pop music), and Ke Buena AM (Mexican music). Our exclusive broadcast of certain soccer matches and other sporting events has placed Televisa’s radio stations among the highest-rated sports-broadcasting radio sta- tions in Mexico. Televisa’s entertainment and information radio pro- grams are broadcast to more than 60% of Mexico’s population. Four of our most popular stations –Los 40, Ke Buena, W Radio, and Ke Buena AM– are streamable over the Internet as well. Televisa’s Other Businesses segment includes publishing, gaming, radio, soccer, feature-film distribution, and publishing distribution businesses. Our Radio business is always inno- vating by expanding its program- ming and services offering for the benefit of both our audiences and advertising customers. OTHER BUSINESSES 17 UNIVISION In the United States, Televisa has equity and warrants, which upon exercise, would represent, as of the date of this report, approximately 36% on a fully diluted, as-converted basis of the equity capital in Univision Holdings Inc., the controlling company of Univision Communications Inc., the leading media company serving the Hispanic market in the United States. It includes: Univision Network, one of the leading networks in the United States regardless of language and the most-watched Spanish- language broadcast television network in that country available in approximately 90% of U.S. Hispanic television households. UniMás, a leading Spanish-language broadcast television network available in approximately 84% of U.S. Hispanic television households. Univision Cable Networks, including Gala- visión, the most-watched U.S. Spanish-lan- guage entertainment cable network, as well as UDN (Univision Deportes Network), the most-watched U.S. Spanish-language sports cable network, Univision tlnovelas, a 24-hour Spanish-language cable network dedicated to telenovelas, ForoTV, a 24-hour Span- ish-language cable network dedicated to in- ternational news, and an additional suite of cable offerings: De Película, De Película Clási- co, Bandamax, Ritmoson and Telehit. 18 62 TV Stations Univision Local Media, which owns and/or operates 62 television stations and 58 radio stations in major U.S. Hispanic markets and Puerto Rico. Various digital properties consisting of on- line and mobile websites and apps, includ- ing Univision.com, the most visited Span- ish-language website among U.S. Hispanics, Univision Now, a direct to consumer video service, Uforia, a music application featuring multimedia music content. Fusion Media Group (FMG), a division that serves young, diverse au- diences. FMG includes two cable networks: news and lifestyle English language network FUSION TV and a minority stake in El Rey Network, a 24-hour English-language general entertainment cable network, and a collection of leading digital brands that span a range of catego- ries: technology (Gizmodo), sports (Deadspin), music (TrackRecord), lifestyle (Lifehacker), modern women’s interests (Jezebel), news and politics (Splinter), African American news and culture (The Root), gaming (Kotaku), and car culture (Jalopnik). FMG also includes the Company’s interest in comedy and news satire brands The Onion, Clickhole and The A.V. Club. Headquartered in New York City, Univi- sion has television network operations in Miami and television and radio sta- tions and sales offices in major cities throughout the United States. The United States market is an inte- gral part of Televisa’s strategy to keep on expanding its global reach and the partnership and alignment with Univision is key for the success of this expansion. 19 We are deeply committed to strengthening commu- nities throughout Mexico and investing in their devel- opment. During the last 17 years, Fundación Televisa, or Fundación, has created and supported programs that provide educational opportunities, promote cul- tural identity and encourage community engage- ment. Fundación offers a wide range of tools and op- portunities that shape the lives of millions of Mexicans. We have taken advantage of the Company’s wide range of media platforms to promote social aware- ness campaigns, and digital platforms to foster civic participation. Fundación has developed various digi- tal educational platforms that, through innovation and creativity, allow users to substantially improve their abilities and capabilities. These no-cost, self-teaching tools are broadly available to many Mex- icans that would otherwise lack basic tools and access to opportunities. Many of these efforts have improved the lives of millions of people. Establishing strong, strategic partnerships is a prior- ity for Fundación. These partnerships have improved Fundación’s effectiveness and have broadened its reach. We continuously seek out and collaborate with experts in the academic, business, and financial fields, as well as with other organizations to benefit a greater number of people. During these 17 years, we have developed partnerships with more than 400 non-governmental organizations, as well as with public and private institutions. We believe that the best way to enhance quality of life, increase economic opportunities, and improve the well-being of families across Mexico is through educa- tion. Therefore, we offer a range of programs tailored for every development stage, including early child- hood campaigns for newborns to 3 year-olds, access to high-quality elementary and basic education for 4 to 15 year-olds, programs to increase middle and high school completion rates for 16 to 22 year-olds, including an educational program that teaches chil- dren computer coding, in which, in 2017, 27,113 stu- dents from public schools in ten states across Mexico learned basic coding skills from 1,037 teachers, in- structors. These programs, which focus on enhancing FUNDACIÓN TELEVISA 20 the quality of education in Mexico, include scholarships, school infrastructure, media labs, reading workshops, knowl- edge competitions, and the promotion of entrepreneurship and universal values. Our entrepreneurship program “Posible”, has become the major non-governmental program to support startups in Latin America, enrolling more than 96,000 individuals in 2017, 51% of which are women. Fundación also focuses on expanding the reach of Mexi- can culture. We promote our cultural values inside and outside of Mexico, sponsoring and promoting various exhi- bitions, collaborations, and investigative digital and editori- al projects, which benefit from the access to our photogra- phy and audiovisual collection one of the most important visual arts collections in Latin America; our exhibitions have been visited by thousands of people. Ensuring that we make an effective and significant contribu- tion for disaster relief, Fundación worked closely with differ- ent areas and subsidiaries of the Company to set up collec- tion centers to receive in-kind donations for families affected by the September 2017 earthquakes and floods. Through its main operation center established at the Azteca Stadium, Fundación’s team and approximately 18,000 volunteers dis- tributed over 1,110 tons of food, water and medical and home supplies that came from thousands of institutional and individual donors. Volunteers included key opinion lead- ers, sports and media figures and executives from the Com- pany. These goods were delivered to 103 communities and shelters in the states of Oaxaca, Chiapas, Puebla, Morelos, Estado de México, Guerrero, and Ciudad de México. With the support of a large number of citizens, Fundación be- came a bridge of service between Mexican volunteers and those in need of help. In addition, in an effort to continue supporting the affected areas we began activities for the re- covery stage. Fundación was part of an alliance that raised over Ps.255 million to build new houses, schools and critical infrastructure in the affected areas. Thanks to the help of other partners, Fundación plans to work on economic devel- opment on the coast of Oaxaca with local entrepreneurs, ar- tisans, small businesses and college students. Through our BAJA Initiative, Fundación established 133 thousand hectares of protected areas and over 11 thou- sand hectares of recovery zones for responsible fishing vil- lages in partnership with local communities along the coast of the Sea of Cortes. These efforts led to an increase in the biomass of seven species of commercial interest in the area. In the United States, through Televisa Foundation, we sup- port the Hispanic community. Our efforts are particularly focused on improving the lives of Hispanic children and young adults through programs focused on education and culture, including: • A program to communicate the importance of early childhood for healthy cognitive development to His- panic families. To that end, through a network of sever- al key partnerships, including prestigious international organizations such as UNICEF (who in particular adopt- ed the concept as a global campaign), we provide prac- tical information and disseminate our message through Univision and various other social media platforms, reaching millions of people. State of the art learning material programs to strength- en bilingual education for young students. Our plat- form “Aprende con el Chavo” has reached over three million users in the United States through our apps Learn Math, Learn English, Learn Spanish, Learn Code and Explore with El Chavo. • • A program directed to boosting the development of scientific and technological abilities in Hispanic chil- dren, with an emphasis on young women. This pro- gram has gained recognition and support through a national campaign in the United States, and the United Nations has recognized it as one of the top five global initiatives to close the gender gap in the tech sector. We have developed the skills and engaged hundreds of latina middle school girls through our TECHNO- LOchicas Lift program. Televisa Foundation’s cultural program aims to strengthen the sense of identity among Hispanic families and pro- motes Mexican visual arts in the United States. In 2017, we sponsored an exhibition of Gabriel Figueroa’s work at Cen- tro Cultural McNicols in Denver, Colorado as well as a film cycle “Between Twilight and Dawn: Julio Bracho and the Golden Age of Mexican Cinema” at the Museum of Modern Art in New York City. In 2017, Televisa Foundation orga- nized “La Calle”, an exhibition by Alex Webb, in collabora- tion with Apperture Foundation in New York City. 21
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