Trevali Mining
Annual Report 2018

Plain-text annual report

CONSTANTLY EVOLVING ANNUAL REPORT 2018 I Contents 02 This is Televisa 04 Letter to Shareholders 08 Financial highlights 10 Cable 12 Sky 14 Content 16 Other businesses 18 Univision 20 Commitment to sustainability 22 Fundación Televisa 24 Management’s discussion and analysis of financial conditions and results of operation 34 Board of Directors 36 Financial statements II 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. Televisa distributes the content it produces through several broadcast channels in Mexico and in over 75 countries through 26 pay-tv brands, 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 ad- dition, Televisa has equity and warrants which up- on their exercise would represent approximately 36% on a fully-diluted, as-converted basis of the equity capital in Univision Holdings, Inc., the con- trolling company of Univision. Televisa’s cable business offers integrated ser- vices, including video, high-speed data and voice services to residential and commercial customers as well as managed services to domestic and in- ternational carriers. Televisa owns a majority in- terest in Sky, a leading direct-to-home satellite pay television system and broadband provider in Mexico, operating also in the Dominican Republic and Central America. Televisa also has interests in magazine publishing and distribution, radio production and broadcast- ing, professional sports and live entertainment, fea- ture-film production and distribution, and gaming. 1 CABLE Televisa is one of the most important players in the country’s telecom industry. 34.2% Sales contribution 37.6% OSI* contribution SKY A leading direct-to- home satellite television system and broadband provider. 20.7% Sales contribution 24.0% OSI* contribution THIS IS TELEVISA content In 2018, Televisa produced more than 83,000 hours of content for free-to-air and pay-TV. 37.0% Sales contribution 36.5% OSI* contribution other businesses 8.1% Sales contribution 1.9% OSI* contribution unconsolidated businesses 2 * 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 operat- ing income, see Note 25 to our year-end consolidated financial statements. S N O I S I V I D Multiple System Operators (“MSOs”) division which offers video, high-speed data, and voice services to residential and commercial customers, including small and medium sized businesses. Enterprise which provides telecommunications services, including voice, data, managed services, as well as integration and cloud 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 telecommunications network. Our Enterprise division offers telecommunications services through a network of more than 43,000 kilometers of fiber. Our network covers most of the important cities and economic regions in the country, and connects with the United States, enabling us to provide high capacity connectivity between the United States and Mexico. Revenue Generating Units Video Broadband Voice 4,384,247 4,479,017 2,978,508 Total RGUs 11,841,772 km of coaxial cable 90,000 43,000 km of optic fiber 58.7% interest owned by Televisa Operates in Mexico, Central America and Dominican Republic 7.6 million video subscribers 92 thousand broadband subscribers ADVERTISING Televisa operates four broadcast channels—2, 4, 5, and 9— in Mexico City and complements its geographic coverage through affiliated stations throughout the country. Televisa also sells advertising on its pay-TV networks and online properties. Contribution to sales: 19.9% NETWORK SUBSCRIPTION Televisa produces and distributes 26 pay-TV brands and 74 feeds. In 2018, Televisa produced more than 18,000 hours of content for pay-TV networks. Contribution to sales: 4.5% LICENSING & SYNDICATION Televisa exports its programs and formats to television networks around the world. In the United States, Televisa distributes its content through Univision under a Programming License Agreement (“PLA”). This year, the PLA resulted in royalties to Televisa of U.S.$383.6 million dollars. The royalty rate increased to 16.45% in 2018. Contribution to sales: 9.9% +46 million pay-TV subscribers +75 countries worldwide GAMING Casino sites and online lottery business. FEATURE FILM DISTRIBUTION Distributes movies in Mexico and Latin America. RADIO Network of owned radio stations, complemented by affiliated radio stations owned by third parties. 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 regardless of language. Upon the exercise of the warrants, Televisa would hold approximately 36% of the equity capital of Univision on a fully-diluted, as- converted basis. PUBLISHING DISTRIBUTION Distributes publications in Mexico and Latin America. PUBLISHING The leading Spanish-language magazine publisher. SOCCER A first division soccer team of the Mexican league and owner of Mexico’s Azteca stadium. 98 published titles in 2018. Ocesa Entretenimiento Televisa holds 40% equity interest in OCESA, a live entertainment company in Mexico, Central America and Colombia. The Company organized 3,109 events in Mexico and Colombia in 2018. The most successful tour in 2018 was Luis Miguel. 3 DEAR FELLOW SHAREHOLDERS As we enter our second year as co-CEOs, we look back with satisfaction at the steps that our teams took during 2018 to restructure and solidify Televisa’s leadership in its three main operations: Cable, Sky and Content. We continue to seek out new ways to capitalize on the many opportunities in front of us while strengthening our businesses to create long- term value for you, our shareholders. 2018 WAS A YEAR OF TRANSFORMATION Televisa is uniquely well-positioned to benefit from the technological changes that are influencing how people communicate and how they watch their favorite content. We will continue to build from our position of strength and on the ongoing transformation of our business. During 2018, our Consolidated Revenue surpassed the $100 billion pesos milestone and our Operating Segment Income reached $41 billion pesos. However, the real story driving Televisa’s transformation is being written within our individual operating units. Bernardo Gómez Co-Chief Executive Officer Alfonso de Angoitia Co-Chief Executive Officer 4 We continued to transform our Content segment The competitive environment in the content industry is more intense than ever. We compete with global produc- ers and distributors of content, some of whom have pro- duction budgets that have grown to be many times larger than ours. In addition, viewing choices have increased sub- stantially. We are competing head on with multiple over- the-top (OTT) platforms and with online video consump- tion, which continues to expand at a fast pace. Within free-to-air television, competition is also intense, both re- gionally and on a national level. As a result, we have rein- vented ourselves. While many challenges lie ahead, we have made very good progress. The transformation of our Content segment started with the naming of new heads for Televisa Studios, Televisa In- ternational, Televisa Networks and for our Sports Division. This was followed by a complete overhaul of our content of- ferings. The results were very positive: during the fourth quarter alone, 6.5 million people watched our flagship chan- nel every night, and around 40 percent of the people watch- ing television during prime time watched our content. Our serialized dramas and comedies continued to lead in their market segments. Last year, 27 of the 30 most- watched TV programs in Mexico were produced and broad- cast by Televisa, and our flagship broadcast network brought in more viewers than all competing pay TV net- works combined. In addition to strengthening our in-house content produc- tion, we partnered with leading global content players such as Amazon, Mediapro and Sony. Amazon, for example, built the launch of Amazon Prime in Mexico around two se- ries produced for them by Televisa. At the same time, we consolidated the strength of Televisa News, which today transmits the most watched television newscast in Mexico, delivering more than twice the audi- ence of our closest competitor. Throughout election-season last year we were also audience leaders, posting especially strong ratings during the debates and analysis programs. In sports, we were the choice of Mexican audiences in the 2018 Soccer World Cup, both during the matches as well as during programming surrounding the events. On the digital front we continued to expand our presence In Mexico, our content has become number one in terms of video views on YouTube and Facebook with close to 12 billion video views in 2018, a growth of 87% from the previ- ous year. Last year, our digital platforms grew 54% in terms of users reaching a 22% share of all users in Mexico, which means that we still have a lot of room for growth. In addi- tion, according to Comscore, during 2018 we became the number one digital platform among all media entertain- ment companies in terms of the number of users. 5 In our Cable Segment we achieved double-digit growth In our Cable Segment, we were able to deliver double-digit growth in Revenue, Operating Segment Income and Reve- nue Generating Units, or RGUs. This was no easy feat given that we continued to face very strong competition. We continued to differentiate ourselves by offering out- standing customer service, and churn fell to historically low levels. Also, we turned around our Enterprise business and delivered revenue growth during the year. In addition, we purchased the residential fiber-to-the-home business of Ax- tel in the cities where we operate and were able to do so at an attractive valuation. This strategic acquisition added more than 550 thousand high-quality RGUs on a fiber optic network of close to five thousand kilometers. We ended the year with almost 12 million RGUs and, of those, the number of broadband RGUs is already larger than that of video. The outlook for our cable operation continues to be very favorable. On the residential side, penetration of broad- band in Mexico still remains relatively low at around 53%, which means that we have plenty of upside. Sky continues to be a significant contributor to free cash flow During 2018, Sky continued to maintain its superior Operat- ing Segment Income margin of around mid-40s, which is re- markable considering that it had to account for certain non-recurring costs associated with the quadrennial soccer event. In addition, Sky continued to be a significant genera- tor of free cash flow. Last year, Sky’s Operating Income, net of Capital Expenditures, reached close to $6 billion pesos. What’s more, during 2018 Sky launched a very compelling broadband offer that has the potential to become a suc- cessful extension of Sky’s core video business. Sky already had 92 thousand broadband customers at year end. Good corporate citizenship is a crucial element of Televisa’s culture During 2018, we worked hard to improve our sustainability efforts, and these efforts started to pay off rapidly. For ex- ample, we were included in the 2019 Bloomberg Gen- der-Equality Index (GEI); we were selected as a member of the Dow Jones Sustainability MILA Pacific Alliance Index, and the Dow Jones Sustainability Emerging Markets Index; we submitted our Report for Climate Change and Water through CDP; we were confirmed as a signatory of the Unit- ed Nations (UN) Global Compact; we were included as a constituent of the FTSE4Good Emerging Index; and we were confirmed as a member of the Sustainability Index of the Mexican Stock Exchange. The list is long, and we intend to continue expanding it. We remain strongly committed to unlocking shareholder value We strongly believe that our Company has an enviable set of assets with a very unique competitive position. Televisa operates two powerful distribution platforms, including the largest direct-to-home (DTH) company in Mexico with close to eight million customers, and the largest cable company with close to 12 million RGUs and an extensive infrastruc- ture which includes the second largest fixed telecommuni- cations network in the country. In addition, Televisa contin- ues to be the largest and most successful producer of content in Spanish in the world. 6 Into 2019, competition will remain intense across our vari- ous businesses, so we will remain focused on execution, growing our cable business, expanding the sources of reve- nue in Sky, enriching our content with more innovative for- mats and stories, strengthening our collaboration with Uni- vision and, finally, maintaining absolute financial discipline. For many decades, Televisa has been a key player in the communications industry and a leader in the Mexican busi- ness community. Our shares have traded publicly on the Mexican Stock Exchange since 1991 and in the New York Stock Exchange since 1993. The decisions we are making today are intended to position Televisa for growth and suc- cess for many decades more. We remain confident in the long-term potential for our three core businesses and will remain fully committed to the exe- cution of our business plan to create shareholder value. Thank you. Alfonso de Angoitia Bernardo Gómez Co-Chief Executive Officers 7 FINANCIAL HIGHLIGHTS In millions of Mexican pesos, except per CPO amounts and shares outstanding 2018 2017 Var.% Consolidated net sales 101,282 94,274 8.2% Operating-segment income1 40,679 37,457 8.5% Segment margin Operating income Margin 38.3% 38.4% 20,253 14,243 42.2% 20.0% 15.1% Controlling interest net income 6,009 4,524 32.8% Earnings per CPO 2.07 1.54 Shares outstanding at year-end (in millions) 338,329 342,337 Cash and cash equivalents at year-end 32,068 38,735 -17.2% Non-Current investments in financial intruments 14,448 7,585 90.5% Total debt at year-end 121,972 122,300 -0.3% ¹ Operating segments 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 25 to our year- end consolidated financial statement. 8 Consolidated net sales in billions of pesos (as reported) . 8 3 7 . 3 9 6 . 6 2 6 . 9 7 5 . 4 2 5 . 0 8 4 . 6 1 4 . 3 1 0 1 . 3 6 9 . 3 4 9 . 1 8 8 . 1 0 8 07 08 09 10 11 12 13 14 15 16 17 18 Operating segment income in billions of pesos (as reported) . 4 8 2 . 9 9 2 . 4 5 2 . 1 3 2 . 7 0 2 . 9 9 1 . 1 8 1 . 9 8 3 . 5 7 3 . 7 0 4 . 7 5 3 . 3 2 3 07 08 09 10 11 12 13 14 15 16 17 18 Compound Annual Growth Rate: 8.4% Compound Annual Growth Rate: 7.6% 9 CABLE 12 million Revenue Generating units 10 +1.7 million RGUs added +187 thousand subscribers of izzi go During 2018, the Cable segment surpassed 11.8 million Revenue Generating Units, improving service quality and offering attractive video, voice and data packages. Televisa’s Cable business offers cable and convergent services across 28 states in Mexico, covering the main metropolitan areas of the country. In December 2018, Televisa aquired from Axtel, S.A.B. de C.V. its residential fiber-to-the-home business and related assets in Mexico City, Zapopan, Monterrey, Aguascalientes, San Luis Potosi, and Ciudad Juarez. We continued upgrading our network, which now reach- es more than 14.5 million homes in the country. Our network has been updated to the cable industry stan- dard, combining traditional hybrid fiber-coaxial, fiber deep, and deployments of Gigabit Passive Optical Net- works (GPON). Internet Protocol Access and Large-Scale Core networks are in place and Voice over IP Cores is placed in several regions to support telephony traffic for residential and enterprise cus- tomers. We are able to deliver up to 100 megabits of speed per second in the very large majority of homes passed. Revenues for our Cable segment grew by 9.6% in 2018. We added more than 1.7 million RGUs, including the addi- tional 553 thousand RGUs coming from the acquisition of Axtel’s fiber-to-the-home business. During 2018, our flagship offer consisted of a triple-play package that includes unlimited telephony to almost every corner of the globe and 50Mbps of internet speed. In addi- tion, our video offer includes izzi go, which is our out-of- home video service that reached a record high usage during the 2018 FIFA World Cup. In addition, we launched our first proprietary sports chan- nel, Afizzionados, featuring exclusive content. 11 Sky Sky is our direct-to-home (DTH) satellite television and fixed wireless broadband operation. Through its pay-TV packages, it reaches every corner in Mexico, plus the Do- minican Republic and Central America. Sky offers pay-TV packages, including exclusive content that ranges from sports to concerts and special events, as well as fixed-wire- less broadband services with speeds ranging from 5 to 10 Mbps. With 7.6 million customers, Sky remains as one of the most successful pay-TV operations in the region. 64 World Cup Matches Sky was the only platform to broadcast all FIFA 2018 World Cup matches in Mexico, including 24 on an exclusive basis. In spite of the FIFA World Cup and the peso depreciation, Sky was able to keep Operating Segment Income margins in line with previous years 12 Transforming Sky in to a Telecommunications Company In 2018 Sky launched broadband services reaching 92,000 Blue Telecomm subscribers by the end of 2018 13 content Advertising During 2018, advertising sales posted an increase of 2.1% mainly supported by private sector sales. Total commit- ments during the 2019 upfront negotiation reached 16.4 billion pesos. With four free-to-air channels in Mexico City —2, 4, 5, and 9— which Televisa operates with a combination of owned and affiliated network stations throughout Mexico, a strong portfolio of pay-TV networks, and new media platforms, Televisa is one of the largest providers of advertising alter- natives in the Mexican market. In 2018, we obtained the renewal of the concession titles for our broadcast television signals for a term of 20 years. The new advertising sales mechanism has been fully assimilated and is achieving its objectives. We keep on innovating with updated formats and storylines as well as partnering with global content players. Network Subscription Revenue 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-language content for pay-TV platforms. We com- mercialize 26 pay-TV brands through 74 domestic and in- ternational feeds, which reach over 46 million subscribers around the world. Over the years we have assembled a portfolio of channels for pay TV that improve every day. Televisa’s pay-TV networks continue to be among the most watched networks on pay- TV platforms in Mexico. Network Subscription Revenue increased by 18.6% in 2018. The increase is primarly explained by the repackag- ing of our networks in the fourth quarter of 2017. Advertising revenues represented 53.9% of our Content revenues and 19.9% of our segment net sales 26pay-TV brands 14 U.S.$383.6 million received in the form of royalties from Univision IN 2018 Licensing & Syndication Televisa keeps successfully exporting innovative con- tent around the world, as well as creating alliances with new partners. In the United States, through our Programming License Agreement (“PLA”) with Univision, we reach a very import- ant demographic in the Spanish-speaking world: the His- panic market. 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 16.45% on substantially all of Univision’s Spanish-len- guage audivisual revenue. In 2018, we received U.S.$383.6 million in the form of royalties from Univision. The royalty rate increased to 16.13% starting on January 1, 2018, and 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 2018, we exported over 83 thousand hours of our original programming to more than 75 countries. 15 Gaming PlayCity Casino and PlayCity Apuestas, include 17 sites across the country with over 7,700 Electronic Gaming Ma- chines and online sports betting through a responsive mo- bile app and powerful website. Our Casinos have the most modern video reels and bingo games, as well as the widest sports betting offer in Mexico. 2018 marked the 9th consecutive year of growth in profitability despite increasing competition. During 2019, we plan to continue adding new products to our portfolio and following up with our expansion plan. over 7,700 Electronic Gaming Machines Publishing During 2018, Televisa published 98 magazine titles in 12 countries. These titles cover a wide variety of consumer in- terests from health, beauty, fashion, and pop culture, to technology, travel, sports, finance and science. Some of our titles aim to capitalize on the success of Tele- visa’s audiovisual content and to engage with our audienc- es at a deeper level. As a result of structural challenges in the publishing indus- try, including shifts in reading habits, wider availability of online content, higher penetration broadband, and grow- ing competition from emerging platforms, we continued streamlining our operations, taking advantage of synergies that exist in the development of content and our back-of- fice activities, including purchasing, printing, and distribu- tion. We also developed capabilities to start monetizing short and long format videos based on our branded events and experiences. In Mexico, we continue with our cost rationalization process and we are reducing our physical presence in other countries. Televisa’s Other Businesses segment includes publishing, gaming, radio, soccer, feature-film distribution, and publishing distribution businesses. OTHER Businesses 16 Radio As an important participant in Spanish language radio in Mexico, Televisa broadcasts news, music, sports and talk show programming through a network of 80 radio stations. Of these stations, 17 are owned and 63 are affiliates owned by third parties. Our radio stations use various program formats that target specific audiences and advertisers, and cross promote tal- ent, content, and programming of our other businesses. 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 mu- sic). Our exclusive broadcast of certain soccer matches and other sporting events has placed Televisa’s radio sta- tions among the highest rated sports broadcasting radio stations in Mexico. Televisa’s entertainment and information radio programs 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. Our radio business is always innovating by expanding its programming and services offering for the benefit of both our audiences and advertising customers. 17 one of the leading networks in the United States regardless of language UNIVISION 18 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 con- verted 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: language cable network dedicated to international news, and an additional suite of cable offerings: De Película, De Película Clásico, Bandamax, Ritmoson and Telehit. Univision Local Media, which owns and/or operates 65 television stations and 58 radio stations in major US-His- panic markets and Puerto Rico. 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 80% of US-Hispanic television households. Various digital properties consisting of online and mobile websites and apps, including Univision.com, the most visited Spanish language website among US-Hispanics; Univision Now, a direct-to-consumer, on-demand and live streaming subscription service; Uforia, a music application featuring multimedia music content. UniMás, once of the leading Spanish-language broadcast television networks in the United States. Univision Cable Networks, including Galavisión, the most watched U.S. Spanish language 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 net- work dedicated to telenovelas; ForoTV, a 24-hour Spanish Two English language cable networks: FUSION TV, a news and lifestyle network, and a minority stake in El Rey Net- work, a 24-hour general entertainment cable network. Headquartered in Miami, Univision has television and radio stations as well as sales offices in major cities throughout the United States. 19 COMMITMENT TO sUSTAINABILITY At Televisa, we are committed to taking the lead on sustainability through tangible and measurable sustainability programs that improve the environment and our corporate governance. At the same time, we have been focused on strengthening communities while working to inspire and develop human potential through innovative education and cultural initiatives. This commitment to sustainability begins with our philan- thropic arm, Fundación Televisa, which has developed a range of social programs designed to benefit society. At Fundación Televisa we aim to enhance the potential of people in Mexico and the U.S while inspiring others to join forces. Our innova- tive programs in education, culture, entrepreneurship, and environmental protection provide an empowering platform for hundreds of thousands of people to improve their lives, transform their communities and build better and more sus- tainable societies. At the same time, we have made sustainable development a key part of our offerings and commercial strategy as a way to create value and better meet the expectations of shareholders. We have concentrated on ways to limit greenhouse gas emissions, strengthen alliances with renewable energy generators and meet or exceed compliance with the Gen- eral Law on Climate Change, with a special focus on making sustainability gains through our in-house Environmental Management Systems (EMS). Another one of our strengths is the depth of experience possessed by our sustainability team members. Through their leadership, we leverage our corporate structure to em- bed sustainability throughout our lines of businesses. To monitor and enhance effectiveness, we manage sustainabil- ity through our Sustainability Coordination and Analysis unit, which reports directly to our VP of Investors Relations. On a monthly basis, our VP of Investor Relations shares the prog- ress of our sustainability initiatives with a team led by the Co- Chief Executive Officers of Grupo Televisa, Bernardo Gómez Martínez and Alfonso de Angoitia Noriega. Our achievements in sustainability are the result of a regular review and enhancement of internal policies, procedures and management systems to improve corporate perfor- mance. Key performance indicators are continually refined and monitored in environmental, social and corporate gov- ernance spheres and the impact of the programs is con- stantly evaluated in a culture of continuous improvement. But perhaps most importantly, we understand the crucial need to gain the support of key constituencies for our sus- tainability efforts by offering key stakeholders regular re- ports on the progress of our environmental, social and cor- porate governance programs. As part of that communications effort, we put special effort into producing a comprehensive and compelling annual sustainability report. To date, our sustainability efforts have been recognized lo- cally in Mexico and around the world: • In February 2016, we joined the United Nations (UN) Global Compact, the world’s largest corporate sustain- ability initiative, and incorporated the Ten Principles of the UN as part of our strategy, culture and daily actions. 20 COMMITMENT TO sUSTAINABILITY • • Since 2016, we have been selected as a constituent of the FTSE4Good Emerging Index. In 2018, our social responsibility programs were recog- nized for the second time with the “Empresa Social- mente Responsable” (Socially Responsible Company) award, granted by Centro Mexicano de la Filantropía (Mexican Center for Philanthropy), and Alianza por la Responsabilidad Social Empresarial (Alliance for Cor- porate Social Responsibility). We received this award for our continuous involvement with the community, quality of labor life, care and preservation of the envi- ronment and business ethics. • Moreover, on February 1, 2013, we were named one of the six members of the Sustainability Index of the Mex- ican Stock Exchange; and in March 2018, we were con- firmed as a sustainable issuer for the period effective from March 20, 2018 to March 15, 2019. The Sustain- ability Index currently includes 30 issuers, which have been selected based on their commitment to corpo- rate governance, social responsibility and environmen- tal management. • In September 2018, we were selected as a member of the Dow Jones Sustainability MILA Pacific Alliance In- dex, comprised of sustainability leaders from Chile, Peru, Mexico and Colombia. Also, we were selected as one of the three Mexican companies to be included in the Dow Jones Sustainability Emerging Markets Index, which is comprised of sustainability leaders from West- ern Europe, India, China, South Africa, Central America, South America and other countries. The Dow Jones Sustainability Indices recognize public companies for their outstanding performance across economic, envi- ronmental and social sectors, and are used as a refer- ence by investors who consider sustainability when making investment decisions. • In January 2019, we were selected as one of the four Mexican companies to be included in the 2019 Bloomberg Gender-Equality Index (GEI), which distin- guishes companies committed to transparency in gen- der reporting and advancing gender equality. The GEI is a reference Index which includes 230 firms from 10 sectors located across 36 countries and regions. Our GEI inclusion is a solid indicator to our employees, in- vestors and industry peers that our leadership truly understands establishing an inclusive workplace. Our notable achievements in advancing the cause of sus- tainability are the result of the consistent review and contin- ual enhancement of our programs, our emphasis on corpo- rate social responsibility as a critical business focus and the establishment of key performance indicators in the environ- ment, social and corporate governance matters. To sum up, we view our deep and abiding commitment to sustainability as more than just an effort to do good, but as a central part of our business that will contribute to our growth and suc- cess. Never satisfied, we remain firmly committed to contin- ually improving and aligning our operations with internation- al standards and best practices for the long-term. 21 FUNDACIÓN TELEVISA At Fundación Televisa we aim to enhance the potential of people in Mexico and the United States while inspiring oth- ers to join forces. Our innovative programs in education, cul- ture, entrepreneurship, and environmental protection pro- vide an empowering platform for hundreds of thousands of people to improve their lives, transform their communities and build more and better sustainable societies. Our ap- proach combines an effective leverage of Televisa communi- cation channels with state of the art digital tools, financial support and on-the-ground multidisciplinary teams. In 2018, we impacted the lives of 1,054,632 children, youth and adults in both countries, investing with our allies togeth- er more than $346 million pesos. We reached to have more than 127 million of media impacts. More than 81 million people received our messages, more than 64 institutions and organizations where benefited with advertising slots through communication campaigns.  POSiBLE helps to develop high impact innovation-driven en- trepreneurship through training, networking, resources, visi- bility and acceleration for high potential startups. In addition, Fundación Televisa’s culture and environmental programs are focused on general public in specific locations and more broadly through the digital and media space. Our numbers: • Over 3.5 million users of Aprende con el Chavo free on- line language and STEAM app. • More than 30,000 students from public schools in six learned basic coding skills states across Mexico through more than 1,000 teachers and instructors trained by Cuantrix. • More than 1,300 middle-school girls (primarily Lati- nas) attended 34 Technolochicas STEAM activities in 17 cities across the United States. Our causes generated more than 1.5 million followers in social networks and brought more than 4 million people to our platforms. • Fundación Televisa programs work along different life stages. Empieza Temprano focuses on early childhood development by providing parents and families with information and practi- cal tips. To enhance the skills of students, Fundación Televisa has been promoting, for 17 years, values under the slogan Tienes el Valor o te Vale. Aprende con el Chavo is a free platform for online learning and Cuantrix teaches computer science and coding. Technolochicas empowers young women through STEAM (Science, Technology, Engineering, Art and Mathemat- ics) and Bécalos works to increase high-school and college completion while improving the student’s employability. 22 37,424 recipients of Bécalos scholarships, including 1,614 students, developed employability competen- cies, 217 participants of an international ex-change program with the United States community colleges, and 90 attended a program for talented youth. • With these numbers, Bécalos reached a historic total of 285,917 beneficiaries and 1,202 attendees in its inter- national mobility activities. • To preserve the environment, we protected an addi- tional 11,239 hectares as fishing recovery zones in the Sea of Cortés to reach a total of 1,217,154 hectares. This effort benefits 2,500 fisherman. In 2018 we impacted the life of 1,054,632 children, youth and adults in both countries, investing with our allies together more than $346 million pesos • 119,347 people registered in the entrepreneurship platform POSiBLE in Mexico with a record percentage of 55% women. Moreover, 1,100 Latino entrepreneurs registered to a POSiBLE US pilot program in Los Angeles • We partipated in 7 photographic fairs in Mexico and other countries, with more than 150,000 visitors. • We participated with far-reaching communication cam- paigns including Valores promoting civic values. In response to the earthquakes of September 2017, the program ReconstruYAmos México (Rebuilding Mexico) was created to support rebuilding projects along the states that suffered most damage. Throughout strategic alliances like “1X1” with the Alfredo Harp Helú Foundation, Fomento Social Banamex and the Coca Cola Foundation, where we invited all the Mexican people to donate with the commit- ment to duplicate each peso they gave; and alliances with the BBVA Bancomer Foundation and the Gentera Founda- tion, we benefited more tan 189 thousand people in Oaxa- ca, Chiapas, Morelos, Puebla, Estado de México, Guerrero and Mexico City, with the more than 13.8 million dollars in- vested in rebuilding 1,669 houses,11 schools, 3 local mar- kets, 782 ovens and kitchens, 11 craft workshops, 1 mobile hospital and 1 asylum during 2018. By responsibly leveraging media, talent, partnerships and financial assets, the efforts led by Fundación Televisa re- flect the commitment of Televisa to make a strategic contri- bution to building a more empowered, prosperous and democratic society where all people have a platform to im- prove their life quality. 23 INVESTOR Information CORPORATE HEADQUARTERS Grupo Televisa, S.A.B. Av. Vasco de Quiroga 2000 C.P. 01210 México, CDMX (5255) 5261-2000 LEGAL COUNSEL Mijares, Angoitia, Cortés y Fuentes, S.C. Javier Barros Sierra 540, 4to piso C.P. 01210, México, CDMX (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 KPMG Cárdenas Dosal, S.C. Blvd. Manuel Ávila Camacho No.176 Col. Reforma Social C.P. 11650, México, CDMX (5255) 5246-8300 DEPOSITARY The Bank of New York BNY Mellon Shareowner Services PO Box 358516 Pittsburgh, PA 15252-8516 (201) 680-6825 COMMON STOCK DATA 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 holders of a majority of the Series “A” Shares and Series “B” Shares voting together, generally, but not necessarily, on the recommendation of the Board of Directors, as well as a majority of the Series “A” Shares voting separately. SEC FILINGS AND FORWARD LOOKING STATEMENT 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. INVESTOR RELATIONS We ask that investors and analysts direct all inquiries to: Grupo Televisa, S.A.B. Av. Vasco de Quiroga 2000 C.P. 01210 México, CDMX (5255) 5261-2445 ir@televisa.com.mx www.televisa.com www.televisair.com . x m m o c . i n g i s : n g i s e D III www.televisa.com www.televisair.com IV 

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