Trevali Mining
Annual Report 2021

Plain-text annual report

THE FUTURE THE FUTURE THE FUTURE of digital entertainment 2021 ANNUAL REPORT C O N T E N T S 02 This is Televisa 04 Letter to Shareholders 08 Financial highlights 10 Cable 12 Sky 14 Content 16 Other businesses 18 TelevisaUnivision 20 Commitment to sustainability 22 Fundación Televisa 24 Board of Directors Unless expressly stated otherwise, the information included in this report is as of December 31, 2021 and reflects the Company’s operations and businesses as of such date. Some information, especially such related to the Content segment, has materially changed since then as a result of the completion of the transaction described in the TelevisaUnivision section. Grupo Televisa S.A.B. (“Televisa”) is a major telecommunications corporation which owns and operates one of the most significant cable companies as well as a leading direct-to-home satellite pay television system in Mexico. Televisa’s cable business offers integrated services, including video, high-speed data and voice to residential and commercial customers as well as managed services to domestic and international carriers. Televisa owns a majority interest 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 holds a number of concessions by the Mexican government that authorizes it to broadcast programming over television stations for the signals of TelevisaUnivision, Inc. (“TelevisaUnivision”), and Televisa’s cable and DTH systems. In addition, Televisa is the largest shareholder of TelevisaUnivision, a leading media company producing, creating, and distributing Spanish-speaking content through several broadcast channels in Mexico, the US and over 60 countries through television networks, cable operators and over-the-top or “OTT” services. Televisa also has interests in magazine publishing and distribution, professional sports and gaming. 1 This is TELEVISA CABLE SKY Televisa is one of the most important participants in Mexico’s telecom industry DIVISIONS Multiple System Operators (“MSOs”) division which offers video, high-speed data, voice and mobile services to residential and commercial customers, including small and medium sized businesses. Enterprise 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. Revenue Generating Units ("RGUs") Video Broadband Voice Mobile 4,166,460 5,649,102 4,617,265 156,051 Total RGUs 14,588,878 A leading direct-to- home satellite television system and broadband provider Operates in Mexico, Central America and the Dominican Republic. 58.7% interest owned by Televisa. Sky offers pay-TV packages, including exclusive content that ranges from sports to concerts and special events, as well as fixed- wireless broadband services with speeds ranging from up to 20 Mbps. Revenue Generating Units Video Broadband Voice MVNO 7,408,075 727,226 601 30,266 Total RGUs 8,166,168 CONTENT In 2021, Televisa produced around 87,000 hours of content free to air television and pay-TV 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. Network Subscription Televisa produces and distributes 27 pay-TV brands. In 2021, Televisa produced more than 19,000 hours of content for pay-TV networks. 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 Program License Agreement (“PLA”). This year, the PLA resulted in royal- ties to Televisa of U.S.$417.8 million. Other businesses Gaming Casino sites and online lottery business. Publishing Distribution Distributes publications in Mexico and Latin America. Feature Film Distribution Distributes movies in Mexico and Latin America. Publishing A leading Spanish-language magazine publisher. Soccer First division soccer team of the Mexican league and owner of Azteca stadium, located in Mexico City. 2 TELEVISATELEVISA Sales Contribution 43.3% Cable 32.4% Content 19.8% Sky 4.5% Other Businesses OSI* Contribution 46.6% Cable 31.7% Content 19.6% Sky 2.1% Other Businesses * 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 consolidated operating income, see Note 26 to our year-end consolidated financial statements. Unconsolidated businesses TelevisaUnivision Since completion of the merger between Televisa’s media, content and production assets with Univision on January 31st, 2022, Televisa is the largest shareholder of TelevisaUnivision with an equity stake of approximately 45%. As the leading Spanish-language media and content company in the world, TelevisaUnivision features the largest library of owned content and industry-leading production capabilities that power its streaming, digital and linear television offerings, as well as its radio platforms. 3 January 2022 Dear Shareholders On January 31st, 2022, we effectively closed the transformative merger of Televisa’s media and content business with Univision, nearly one year after announcing the transaction. This transformational combination created Televi- saUnivision, the world’s leading Spanish-language media and content company that is unparalleled in the global media landscape and will exclusively focus on the massive market opportunity that exists with the global Spanish-speaking audience of almost 600 million people. We closed the transformative merger of Televisa’s media and content business In preparation for this merger, both Televisa and Univision made significant progress transforming their businesses across all dimensions. Both teams have built upon our brands and the deep connection with our audience to deliver levels of viewership these two companies haven’t seen in years. Univision’s portfolio of television networks had the highest audience share since 2014, and Televisa’s content performance and audience delivery in Mexico was equally im- pressive. Univision completely reinvented its ad sales business and both compa- nies experienced above-market advertising revenue growth in 2021. And, most importantly, we have completely transformed the organization, strengthening our already exceptional teams. with Univision TelevisaUnivision is already driving towards a future that neither company could have achieved independently. One of the most exciting outcomes of this histor- ic merger is the creation of the largest ever Spanish-language global streaming platform, ViX, backed by the assets and resources of TelevisaUnivision, including its massive library of content. ViX is the first-of-its-kind global streaming prod- uct with two very distinctive experiences, advertising video on demand (AVOD) and subscription video on demand (SVOD), all in one single app, easily accessi- ble for everyone across all major platforms in the U.S., Mexico and 19 countries across the rest of Latin America. The benefit of having 2 tiers in one app is that we will be able to upsell our premium service to AVOD users, while SVOD sub- scribers will seamlessly be able to enjoy these two distinctive experiences, each with its own unique content. Bernardo Gómez Co-Chief Executive Officer Alfonso de Angoitia Co-Chief Executive Officer 4 In 2021, we far exceeded our initial growth expectations, and our prospects for 2022 look equally as impressive We are very excited about TelevisaUnivision’s achievements since announcing the merger and look forward to sharing with you our future success. In 2021, we far exceeded our initial growth expectations, and our prospects for 2022 look equally as impressive. BUSINESS PERFORMANCE The Company’s operating performance during 2021 was solid, driven by four operational pillars: (1) turning around advertising revenue growth at our Content segment; (2) expanding our fiber-to-the home (FTTH) footprint at our Cable segment; (3) maintaining our pay-TV market share at Sky; and (4) turning around our Other Businesses segment. CABLE – PASSED 2 MILLION ADDITIONAL HOMES WITH FTTH In 2021, we successfully achieved our plan to pass 2 million homes with FTTH. We closed the year with approximate- ly 17.9 million homes passed with our network, of which approximately 65% are connected either with fiber-to-the- node or fiber-to-the-home. The investments that we have made over the last few years have been paying off and have allowed us to keep up with the increase in demand for high- speed broadband. Our Cable business had a good year in terms of RGU net additions despite having tough comps due to the record number delivered in 2020 driven by the COVID-19 lock- downs. We reported 501 thousand RGU net additions of video, broadband, voice, and mobile subscribers, ending 2021 with 14.6 million total RGUs. This result was largely driven by both the realignment of some flagship products, as well as the homes-passed expansion plan we implement- ed throughout the year, launching the service in the cities of Guadalajara, Toluca, Durango, Mazatlán, and Tepic. Our cable business continues to grow due to our higher sales levels and an improved product mix, which also brings a higher average revenue per user (ARPU). In 2021, we delivered consistent revenue and operating segment income growth of 5.8% and 7.3%, respective- ly. We remain excited about future opportunities in this business, driven mainly by the ongoing expansion of our footprint. Our Enterprise business also continues to build scale, growing sales and operating segment income by 7.2% and 6.2%, respectively, during the year. SKY – MARGIN PRESSURE GIVEN COSTS OF SPORTING RIGHTS 2021 was a challenging year for Sky, driven by lower recharges of prepaid packages due to a decline in home confinement related to the COVID-19 pandemic, and the amortization of certain sporting events that were canceled in 2020 due to the pandemic. RGUs remained relatively stable, with net additions of 22 thousand for the full year. Sky experienced some video disconnections in 2021, but its market share remained mostly unchanged. Moreover, the video disconnections were fully offset by RGU net additions of broadband and mobile subscribers. We closed the year with approximate- ly 8.2 million RGUs, of which 8.9%, or 727 thousand, are broadband subscribers. The above-mentioned factors led Sky’s revenue and operating segment income to fall by 0.5% and 6.9% year- on-year in 2021, reaching an operating segment income margin of 38.6%. 14.6 million Cable RGUs 5 In 2022, we will have non-recurring costs and expenses of approximately $60 million dollars related to transmis- sion rights and production of the World Cup in Qatar. We expect the rest of Sky’s costs and expenses to remain at similar levels to those of 2021 in real terms. We will continue seeking new ways to provide more value to our broadband subscribers. We also keep innovating on the video offer. We are committed to developing other pay-TV and telecom offers to maintain the resilience and profitability of this business. CONTENT – STRONG INFLECTION IN ADVERTISING REVENUE Our Content segment had impressive operating perfor- mance in 2021. Last year, the top 20 programs on Mexico’s broadcast television were produced and transmitted by Televisa, including telenovelas, dramas, newscasts, and comedies. Televisa’s top three programs during 2021 had audiences between 63% and 73% higher than the top-rat- ed program of our closest competitor. Throughout the week, Televisa’s audiences were 91% higher than those of the second largest broadcaster, while audienc- es at our flagship network Las Estrellas were 154% higher than those of our closest competitor. During 2021, our main newscast had 43% higher audiences than those of the other two free-to-air TV broadcasters combined. Finally, in 2021, Televisa transmitted eight out of the ten soccer matches with the highest audiences in Mexico. Our strong audience performance has been driven by the strategic plan imple- mented three years ago to improve and reinvigorate our content creation and production capabilities. Our Content segment delivered strong financial results during the year, growing revenue by 10.2% and operating segment income by 11.5% year-on-year. This was mainly due to an increase in Advertising sales of 17.2%, as the economic rebound has driven up marketing activity and advertising spending across our private sector customers. Most of our clients are looking to position their brands, products, and services in front of consumers and Televisa’s solid ratings during 2021, particularly on Prime Time, pro- vided a significant advantage. Regarding our upfront, we are pleased to say that our negotiations with our customers were successful. We estimate that advertising deposits increased by 12.8% year-on-year, representing the best upfront performance in Televisa’s history. We are optimistic that this will help sustain a solid pace of advertising revenue growth in 2022. UNIVISION – ONGOING DIGITAL TRANSFORMATION STRATEGY 2021 was a defining year for Univision, after Searchlight and ForgeLight concluded the acquisition of a majority ownership interest in the company. The strategy for 2021 was to optimize the enormous potential of Univision’s core business, and at the same time, leverage the power- ful assets of the company to build a new business for the future. Together with our new partners, we immediately rebooted the organization to execute this strategy, and over the course of the year, we completely reinvented Uni- vision. This culminated in the most significant chapter of Univision’s transformation – the closing of the merger with Televisa’s media and content business to create the world’s leading Spanish-language media and content company: TelevisaUnivision. In 2021, Univision reported some of the best financial results the company has seen in years. For the first time since 2016, Univision delivered both revenue and EBITDA growth, of 11.8% and 5%, respectively. This growth more than offsets our investment in the launch of PrendeTV and the massive pre-launch preparation for the largest ever Spanish-language global streaming platform, ViX. FOCUS ON ESG IS A PRIORITY At Televisa, we understand our role in serving society. We believe that adopting sustainable business practices is critical to generate long-term value for our customers, employees, shareholders, and communities. ESG is a high priority to Televisa and an important component of its business strategy. We are committed to developing and implementing initiatives to impact our environment and society positively. 6 We believe that adopting sustainable business practices is critical to generate long-term value for our customers, employees, shareholders, and communities During the fourth quarter of 2021, MSCI upgraded Televi- sa rating to BBB, after remaining at a B rating for a year. MSCI is a leading provider of critical decision support tools and services for the global investment community. expansion of our FTTH footprint. We believe that the growth in selective locations makes sense for izzi, given our nationally recognized brand, exclusive content, and high-quality service with competitive offers. Also, for the fifth consecutive year, the Company has been selected as a member of the 2021 Dow Jones Sustainabil- ity MILA Pacific Alliance Index, which measures best-in- class companies among members of the S&P MILA Pacific Alliance Composite that fulfill certain sustainability criteria better than the majority of their peers within a given indus- try. In addition, Televisa was selected as one of only four Mexican companies in the 2021 Dow Jones Sustainability Emerging Markets Index. This year, Televisa’s Corporate Sustainability Assessment score increased, demonstrating the Company’s strong commitment to making sustainability an important component of its business strategy. The Dow Jones Sustainability Indices are a family of best- in-class benchmarks for investors who recognize that sustainable business practices are critical to generating long-term shareholder value and wish to reflect their sus- tainability convictions in their investment portfolios. Throughout 2021, Televisa’s many sustainability efforts continued to be recognized globally. For example, the Company was included in three FTSE4Good Index Series: FTSE4Good Emerging Markets, FTSE4Good Emerging Latin America, and FTSE4Good BIVA. Televisa was also selected as a constituent of the ESG index, launched by S&P, Dow Jones, and the Mexican Stock Exchange. Finally, Televisa was confirmed as a United Nations Global Compact signato- ry, the world’s largest corporate sustainability initiative. At Sky, we expect to continue generating strong cash flow, enhancing our broadband services, and focusing on aggregating value to our packages. We expect 2022 to be challenging due to the non-recurring costs and expens- es related to transmission rights and production of the World Cup. However, we expect this to be offset in 2023. In Content, TelevisaUnivision is committed to delivering compelling original content produced in the Spanish Language. Between ViX and ViX+, in our first year alone, we will have an unprecedented offering of more than 50,000 hours of free and paid premium content. In the subscription service specifically, we will launch at least one high-quality new movie or series every week for the entire first year. We feel privileged to be leading the Company through this digital transformation. Most importantly, we are very thankful to all employees at Televisa for their persistent dedication to continue informing and entertaining our audiences, and providing the high-quality video, voice and broadband services that our customers need and expect. We are thankful to our audiences that have been loyal viewers of our content. We are also thankful to our part- ners at TelevisaUnivision for their unwavering support to implement growth initiatives and the digital transforma- tion we have begun. READY TO KEEP DELIVERING IN 2022 2022 has begun with its own set of challenges, with exac- erbated concerns on inflationary pressures. However, we are well-prepared for the future and well-positioned to execute on our priorities and strategic initiatives. In Cable, we have laid the groundwork to achieve sus- tainable growth in the medium term by accelerating the We have an incredibly strong and dedicated board of directors working for the benefit of Grupo Televisa and its stakeholders, and we are grateful for their many contribu- tions and thoughtful advice during 2021. To our shareholders, we want to extend our appreciation for your continued confidence in our vision and in our long-term prospects. Bernardo Gómez Alfonso de Angoitia Co-Chief Executive Officers 7 FINANCIAL In millions of Mexican pesos, except per CPO amounts and shares outstanding 2021 2020 Chg.% Consolidated net sales Operating-segment income1 Segment margin Operating income Margin Controlling interest net Earnings per CPO 103,522 43,476 39.2% 22,177 21.4% 6,056 2.17 97,362 40,511 38.8% 6.3% 7.3% 17,525 26.5% 18.0% (1,250) 584.3% (0.44) Shares outstanding at year-end (in millions) 329,296 325,993 Cash and cash equivalents at year-end Non-Current investments in financial instruments Total debt at year-end 25,828 4,463 125,792 29,058 (11.1)% 6,533 (31.7)% 122,553 2.6% 1 Operating segments income (OSI) is defined as operating income before corporate expenses, depreciation and amortization, and other income (expense), net. For a reconciliation of operating segment income with operating income, see Note 26 to our year-end consolidated financial statement. 8 FINANCIALFINANCIALHIGHLIGHTS . 8 1 0 1 . 3 1 0 1 . 4 7 9 . 5 3 0 1 . 3 6 9 . 3 4 9 . 1 8 8 . 7 0 4 . 0 1 4 . 5 0 4 . 5 3 4 . 7 5 3 . 9 8 3 . 5 7 3 . 3 2 3 . 9 9 2 . 4 8 2 . 1 0 8 . 8 3 7 . 3 9 6 12 13 14 15 16 17 18 19 20 21 12 13 14 15 16 17 18 19 20 21 Consolidated net sales in billions of pesos (as reported) 4.1% Compound Annual Growth Rate Operating segment income in billions of pesos (as reported) 4.4% Compound Annual Growth Rate 9 HIGHLIGHTSHIGHLIGHTSDuring 2021, our Cable segment reached 14.6 million RGUs, improving service quality and offering attractive video, voice, broadband and mobile packages CABLE 10 CABLECABLE+500 thousand RGUs added Televisa’s Cable business offers cable and convergent services across 28 states in Mexico, covering the main metropolitan areas of the country. During the year, we had an aggressive growth program in which we ex- panded our footprint by more than 2 million homes, reaching more than 17.9 million homes passed in the country. Our network is up to cable industry standards, combining traditional hy- brid fiber-coaxial, fiber deep, and deployments of Gigabit Passive Optical Networks (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 traf- fic for residential and enterprise customers. We are able to deliver up to 100 megabits of speed per second in a large portion of homes passed. Revenues for our Cable segment grew by 5.8% in 2021 and we added more than 500 thousand RGUs. We are the main aggregator of Over the Top platforms in Mexico. During 2021, we continued to add new OTT services into our packages including Star+, Paramount +, HBO Max, among others, strengthening our product suite. In addition, we continue to deploy our state of the art Android TV set-top boxes. Our mobile service (izzi Móvil), with its disruptive pricing and services, has continued to grow, reaching more than 156 thousand subscribers. 5.8% Revenue grow 17.9 million homes passed 11 SKY Our broadband offer continued building scale and we kept offering the best content and exclusive sports through different packages and platforms 12 SKYSKY8.2 million RGUs 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 Dominican 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-wireless broadband services with speeds ranging from up to 20 Mbps. Sky re- mains as one of the most successful pay-TV operations in the region, with around 8.2 million RGUs. We continued expanding broadband services Sky reached 727 thou- sand broadband RGUs by the end of 2021, adding a total of 61 thou- sand in one year. Sky continues innovating on new platforms and has launched Blue To Go Sports, an Over-The-Top platform that offers the possibility to consumers to access exclusive sport content without subscribing to any other package. This content includes the Premier League, La Liga, the NHL, among other, and can be access through any device. 727 thousand broadband RGUs by the end of 2021 13 The top 20 most watched programs in Mexico were produced and transmitted by Televisa CONTENT 38.3% Maintained strong OSI margin ADVERTISING During 2021, advertising sales posted an increase of 17.2%, mainly ex- plained by an improving economic environment in which activity from the private sector remained very strong. With four free-to-air channels in Mexico City –2, 4, 5, and 9– which Tele- visa operates with a combination of owned and affiliated network sta- tions 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. 14 CONTENTCONTENTblim tv blim tv is Televisa’s over the top (“OTT”) platform. With over 37 thousand hours of content and 42 linear channels for SVOD (sub- scription video on demand), and over 18 thousand hours of content and 8 linear channels for AVOD (Advertising video on demand), is the premier Spanish-language platform in Mexico. It currently provides access to Televisa’s extensive library, complemented with content from other major producers, like, Univision, Telemundo, Videocine, Sony, Atresmedia, RTVE, Paramount, Mediapro and many others. NETWORK SUBSCRIPTION Televisa Networks is one of the most successful producers and dis- tributors 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 27 pay-TV brands through 65 domestic and international 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. LICENSING AND SYNDICATION Televisa keeps successfully exporting innovative content around the world, as well as creating alliances with new partners. In the United States, through our Program License Agreement (“PLA”) with Univision, we reach a very important demographic in the Spanish-speaking world: the Hispanic market. Our PLA grants Univision exclusive access to most of our audiovi- sual content in any format for distribution in the United States. In exchange, we currently receive a royalty payment of 16.45% on substantially all of Univision’s Spanish-language audiovisual revenue. In 2021, we received U.S.$417.8 million in the form of royalties from Univision. Televisa’s content has been distributed globally for many decades and has an enduring base of followers beyond Mexico and the United States. During 2021, we exported over 43 thousand hours of our original programming to more than 60 countries. 15 U.S. $417.8 million received in the form of royalties from Univision in 2021 Other BUSINESSES GAMING PlayCity Casino includes 18 locations across the country with over 7 thousand Electronic Gaming Machines and a fully new Online offering. Our product portfolio includes the best and most modern video reels and bingo games, as well as the widest sportsbook in Mexico. 16 BUSINESSESBUSINESSES18 PlayCity Casino sites across the country During 2021, PlayCity continued to operate under the guidelines mandated by the authorities, such as limited capacity policies, social distancing measures and smoking bans. Revenue and operating margin started to show good signs of recovery thanks to a strict cost control and expenses scheme. Although still difficult to predict the end of the pandemic, the organization will keep the high operating and service standards to recover the pre-COVID visits and sales levels as fast as possible. PUBLISHING During 2021, Televisa published 32 magazine titles in Mex- ico. These titles cover a wide variety of consumer interests from health, beauty, fashion, pop culture, technology, travel, 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, we continue to focus our efforts on a multiplatform con- tent generation (print & digital) for our profitable brands. 32 magazine titles published in Mexico 17 The world’s leading Spanish-language media and content company TELEVISA UNIVISION 18 UNIVISIONTELEVISAUNIVISIONTELEVISASince completion of the merger between Televisa’s media, content and production assets with Univision on January 31st, 2022, Televisa is the largest shareholder of TelevisaUnivision with an equity stake of approximately 45%. As the leading Spanish-language media and content company in the world, TelevisaUnivision features the largest library of owned content and industry-leading production capabili- ties that power its streaming, digital and linear television offerings, as well as its radio platforms. The Company’s media portfolio includes the top-rated broadcast net- works Univision and UniMás in the U.S. and Las Estrellas and Canal 5 in Mexico. TelevisaUnivision is home to 36 Spanish-language cable networks, including Galavisión and TUDN, the No. 1 Spanish-language sports network in the U.S. and Mexico. With the most compelling portfolio of Spanish-language sports rights in the world, TelevisaUnivision has solidified its position as the Home of Soccer. TelevisaUnivision also owns and manages 59 television sta- tions across the U.S. and four broadcast channels in Mexico affiliated with 222 television stations, Videocine studio, and Uforia, the Home of Latin Music, which encompasses 57 owned or operated U.S. radio stations, a live event series and a robust digital audio footprint. TelevisaUnivision is home to premium streaming services PrendeTV and Blim TV, which altogether host over 50,000 hours of high-quality, original Spanish-language programming from distinguished produc- ers and top talent, and the upcoming two-tier global streaming plat- form ViX. The Company’s prominent digital assets include Univision. com, Univision NOW, and several top-rated digital apps. For more in- formation, visit televisaunivision.com 19 Commitment to SUSTAINABILITY We focus on managing our environmental, social, grams. We have also set ecological goals, including and corporate governance (ESG) performance as clean energy generation, reduced energy usage, re- we broadcast spanish-language content through duced water consumption, waste generation, and the most relevant platforms, and leverage our circular economy strategies. These goals align with extensive telecommunications infrastructure to international best practices and initiatives like the provide entertainment and connect people. In United Nations Sustainable Development Goals. addition, we seek to create a consistent, trans- parent, and comparable ESG reporting system to keep our stakeholders informed. We also focus on improving our social performance. Growth of our employees is an important topic for us. We further enhance careers with training pro- We recognize the importance of addressing cli- grams (ethics, anti-corruption, human rights, cyber- mate-related challenges. As a result, we have com- security, and data protection), performance evalua- mitted to decreasing our environmental impact tions, and additional benefits. We are committed to and greenhouse gas emissions through targeted offering stable labor conditions to our employees initiatives, training, and emissions reduction pro- by respecting their human and collective rights and 20 SUSTAINABILITYSUSTAINABILITYproviding a working environment that enables • FTSE4Good BIVA Index. them to improve their performance and increase their engagement. Additionally, we focus on achieving local commu- nity engagement through assessment and plan- ning, to understand their potential, expectations, and needs. We create opportunities in education, culture, entrepreneurship, health, and environ- mental protection to improve communities and help build better and more sustainable societies through our social programs. In 2021, our sustainability achievements resulted from a continuous improvement of policies and programs to improve the Company’s performance. Televisa’s sustainability efforts were acknowl- edged globally throughout the year. For example, the Company was ratified for the following: • Dow Jones Sustainability MILA Pacific Alliance Index. • Dow Jones Sustainability Emerging Markets In- dex. The Company was selected as one of only five Mexican companies. • • FTSE4Good Emerging Markets Index. FTSE4Good Emerging Latin America Index. • Bloomberg Gender-Equality Index. The Company was selected as one of only five Mexican companies. • S&P/BMV Total Mexico ESG Index, an ESG index launched by S&P, Dow Jones, and the Mexican Stock Exchange. • United Nations Global Compact, the world’s largest corporate sustainability initiative. • Distintivo Empresa Socialmente Responsable 2021 (2021 Socially Responsible Company recognition), for the fourth consecutive year. This recognition is granted by Centro Mexicano para la Filantropía (Mexican Center for Philanthropy), and Alianza por la Responsabilidad Social Empresarial (Alliance for the Social Responsibility of Businesses). • Merco’s Mexican ranking of the companies with the best Social Responsibility and Corporate Gover- nance. Televisa ranked first in its sector. • Latin American Sustainable Leaders Agenda (ALAS20). Televisa was nominated as ‘Leading Company in Sus- tainability’, ‘Leading Company in Corporate Gover- nance’, and ‘Leading Company in Investor Relations’. To summarize, we perceive our sustainability strategy as a commitment to improving the lives of the people we serve while contributing to our growth. 21 Fundación TELEVISA In a challenging 2021, Fundación Televisa (or “Fun- dación”) was committed to helping those most in need. As a result, in 2021, we were able to impact the lives of 757,565 children and adults in both Mexico and the United States, investing (together with our allies) more than Ps.337.8 million. Our innovative programs in education, culture, entre- preneurship and environmental protection provide an empowering platform for hundreds of thousands of people to improve their lives, transform their commu- nities, and build better and more sustainable societies. Our approach combines an effective leveraging of the Company’s communication channels with state of the art digital tools, financial support and on-the-ground multidisciplinary teams. We directly contributed to 11 of 17 of the United Na- tions (“UN”) Sustainable Development Goals (“SDG”). In 2021, we provided more than 21.5 million digital impacts and more than 103,000 TV & radio media im- pacts, reaching more than 48 million people on TV. At the same time, we helped more than 26 institutions and organizations through communication campaigns with television spaces. We generated more than 1.6 million followers on social networks and more than 1.5 million people to our dig- ital platforms. Fundación programs work along different life stages. Empieza Temprano focuses on early childhood devel- opment by providing parents and families with infor- mation and practical tips. To enhance the skills of K-12 students, Fundación has a civic values program called Va- lores and a health and wellness program called Vida Sa- ludable. Cuantrix teaches computer science and coding. Technolochicas empowers young women through STEAM (Science, Technology, Engineering, Art and Mathemat- ics). Bécalos works to increase high school and college completion while improving the student’s employability. POSiBLE helps to expand high-impact innovation-driven entrepreneurship through training, networking, resourc- es, visibility and acceleration for high-potential startups. In addition, Fundación’s cultural and environmental pro- grams cut across ages serving the general public through actions in specific locations and through digital and me- dia spaces. Our numbers and recognitions include the following: • We had more than 68,000 students from public schools and 5,400 teachers and instructors, across Mexico, register in our Cuantrix platform to learn basic coding skills. • We had more than 2,390 middle-school girls participate in Technolochicas STEAM activities in Mexico and the United States. • We had 37,861 recipients of Bécalos scholarships, including 15,000 scholarships for students and teachers developing employability competencies, 100 scholarships for students attending a pro- gram for talented youth, and 2,000 scholarships for women registered into STEAM training. 22 TELEVISATELEVISA• We continued our partnership with Schmidt • Futures and Rhodes Trust to promote their RISE scholarship program in Mexico. This program provides a lifetime support to exceptional teen- agers that want to change the world. Through our Visual Arts Cultural projects, we promoted and exhibited our photographic and cinematographic collection in national and inter- national festivals and museums reaching more than 69,344 attendees. • We supported 10,978 entrepreneurs in develop- ing their business models through our POSiBLE program. • We participated in far-reaching communication campaigns, including “Cada Momento Cuenta” and “Semana de la Primer Infancia” focused on delivering messages to promote early childhood stimulation; “Valores” which promoted civic values and the prevention of digital violence through the soap opera “Vencer el P@sado”, and our “Vida Saludable” program which promoted wellness and health, reaching more than 6.5 million high school students through the Mexican Secretary of Public Education’s (Secretaría de Educación Pública) Programming Channel “Aprende en Casa III”. • We provided more than 58,606 parents with practical tips weekly via SMS and our digital newsletter through our Empieza Temprano program. • We provided more than 23,929 recipients with new aid in health, nutrition, development, dwelling, reforestation and support of women through our “Gol por México” program. We received the following recognitions: • We were selected and recognized by the UN as one of the 23 organizations that made a public commitment to support girls and women under the 2021-2026 goal. • Recognition from the UN of our Cuantrix pro- gram as a distinguished working member for the SDG “Quality Education.” • Nacional Monte de Piedad awarded Bécalos for the “Sustainable Development in Training for Decent Work.” • Citibanamex’s Social Entrepreneurship 2021 was awarded to our POSiBLE Program. By responsibly leveraging media, talent, partnerships and financial assets, the efforts led by Fundación reflect the commitment of the Company. We intend to make a strategic contribution to building a more empowered, prosperous and democratic society where all people have a platform to succeed. 23 Board of Directors * EMILIO FERNANDO AZCÁRRAGA JEAN (P) 1 Executive Chairman of the Board and Chairman of the Executive Commit- tee of Grupo Televisa. Member and Chairman of the Board of Empresas Ca- blevisión (subsidiary of Grupo Televisa). Former President and Chief Execu- tive Officer of Grupo Televisa. Member of the Boards of Grupo Financiero Banamex and TelevisaUnivision. Member and Chairman of the Board of Man- agers of Innova (subsidiary of Grupo Televisa). Member of Consejo Mexicano de Negocios (formerly Consejo Mexicano de Hombres de Negocios) and Fun- dacion Teletón. Member since December 1990. SALVI RAFAEL FOLCH VIADERO ¹ Until April 2021, served as Chief Executive Officer of Grupo Televisa’s Ca- ble Division. Member of the Board of Consorcio Ara, S.A.B. Former Chief Financial Officer of Grupo Televisa. Former Vice President of Financial Planning of Grupo Televisa and former Vice Chairman of Banking Supervi- sion of the National Banking and Securities Commission. Former Member of the Board of Directors and Former Alternate Member of the Executive Committee of Empresas Cablevisión (subsidiary of Grupo Televisa). Mem- ber since April 2002. In alphabetical order: ALFONSO DE ANGOITIA NORIEGA 1 Co-Chief Executive Officer, Member of the Executive Committee of Grupo Televisa. Member of the Board of Empresas Cablevisión (subsidiary of Grupo Televisa). Co-Chief Executive Officer of TelevisaUnivision Mexico. Executive Chairman of the Board of TelevisaUnivision. Member of the Boards of Liber- ty Latin America, Grupo Financiero Banorte and Innova (subsidiary of Grupo Televisa). Chairman of the Board of Trustees of Fundación Kardias. Member of the Boards of Trustees of Fundación Mexicana para la Salud, Fundación UNAM and The Paley Center for Media. Former Executive Vice President and Chief Financial Officer of Grupo Televisa. Member since April 1997. JOSÉ ANTONIO CHEDRAUI EGUÍA 2 Member of the Board of Directors and Chief Executive Officer of Grupo Comercial Chedraui, S.A.B. de C.V. Former Chief Executive Officer of the Galos division of Grupo Comercial Chedraui, S.A.B. de C.V. Member since April 2019. FRANCISCO JOSÉ CHEVEZ ROBELO 2 In-house advisor, co-founder and retired partner of Chevez, Ruiz, Zamarripa y Cía, S.C., Member of the Audit Committee of Grupo Televisa. Member of the Board of Directors and Member and Chairman of the Audit and Corporate Practices Committee of Empresas Cablevisión (subsidiary of Grupo Televisa). Member of the Board of Directors of Apuestas Internacionales (subsidiary of Grupo Televisa) Former Managing Partner of Arthur Andersen & Co. (Mexi- co). Member of the Board of Directors and Chairman of the Audit Commit- tees of Regiomontana de Perfiles y Tubos, S.A. de C.V., Quality Tube, S.A. De C.V. and Pytco, S.A. de C.V. Member since April 2003. JON FELTHEIMER 2 Chief Executive Officer of Lionsgate. Former President of Columbia TriStar Television Group, former Executive Vice President of Sony Pictures Enter- tainment. Member of the Boards of Lionsgate, Celestial Tiger Entertainment and Pilgrim Media Group. Member since April 2015. JOSÉ LUIS FERNÁNDEZ FERNÁNDEZ 2 Managing Partner of Chévez, Ruíz, Zamarripa y Cía., S.C., Member of the Audit Committee and Chairman of the Corporate Practices Committee of Grupo Televisa. Member of the Boards of Directors of Unifin Financiera, Con- troladora Vuela Compañía de Aviación, Grupo Financiero Banamex, Banco Nacional de México and Apuestas Internacionales. Alternate member of the Board of Directors of Arca Continental Corporativo. Alternate Member of the Board of Directors and Alternate Member of the Audit and Corporate Practices Committee of Empresas Cablevisión (subsidiary of Grupo Televisa). Member since April 2002. MICHAEL THOMAS FRIES 2 President and Chief Executive Officer of Liberty Global, plc. Vice Chairman of the Board of Liberty Global, Executive Chairman of the Board of Liberty Latin America, Member of the Boards of Directors of Lionsgate and Cable Television Labs, Trustee of the Board of The Paley Center for Media, Chair- man of the Board for the Biennial of the Americas, Trustee Emeritus of the Museum of Contemporary Art Denver, Digital Communications Governor and Steering Committee Member of the World Economic Forum. Member of Young Presidents’ Organization. Member since April 2015. GUILLERMO GARCÍA NARANJO ÁLVAREZ 2 Chairman of the Audit Committee and member of the Corporate Practices Committee of Grupo Televisa. Former Chairman of the Board of Trustees of Consejo Mexicano de Normas de Información Financiera. Former Chief Executive Officer and Former Audit Partner of KPMG Cárdenas Dosal, S.C. Member of the Board and the Audit Committee of Banco Nacional de México, S.A. and Citibanamex, Casa de Bolsa, S.A., Member of the Board of Directors, Member of the Corporate Practices Committee and Chair- man of the Audit Committee of Grupo Posadas. Statutory Auditor of Total Systems de México. Member of the Board and the Audit Commission of Fundación Pro-Empleo D.F., A.C. (a non-profit organization). Member since April 2018. BERNARDO GÓMEZ MARTÍNEZ 1 Co-Chief Executive Officer and Member of the Executive Committee of Grupo Televisa. Member of the Board of Empresas Cablevisión (subsidiary of Grupo Televisa). Co-Chief Executive Officer of TelevisaUnivision Mexico. Member of the Boards of TelevisaUnivision and Innova (subsidiary of Gru- po Televisa). Former Executive Vice President and Deputy Director of the President of Grupo Televisa and Former President of Cámara Nacional de la Industria de Radio y Televisión. Member since April 1999. CARLOS HANK GONZÁLEZ 2 Chairman of the Board of Directors of Grupo Financiero Banorte and Ban- co Mercantil del Norte. Vice-President of the Board of Directors of Gruma. Chief Executive Officer of Grupo Hermes. Former Chief Executive Officer of Grupo Financiero Interacciones, Banco Interacciones and Interacciones Casa de Bolsa. Former Deputy General Manager of Grupo Financiero Ban- orte. Member of the Boards of Directors of Bolsa Mexicana de Valores and Grupo Hermes. Member since April 2017. ENRIQUE KRAUZE KLEINBORT 1 Chief Executive Officer, Chairman of the Board of Directors and Founder of Editorial Clío, Libros y Videos, S.A. de C.V. and Letras Libres, S.A. de C.V. Member of Academia Mexicana de la Historia and Colegio Nacional. Mem- ber since April 1996. DENISE MAERKER SALMÓN 1 Anchor at Televisa’s flagship newcast “En punto con Denise Maerker”. Former Research Professor and Director of Communication at Centro de Investigación y Docencia Económicas (CIDE). Cast member at the debate program “Tercer Grado”. Will be proposed as director at the stockholders meeting to be held on April 27, 2022. 24 * Information of the members which designation or ratification will be proposed to the Shareholders’ Meeting on April 27, 2022. SEBASTIAN MEJÍA 2 President and Co-Founder of Rappi. Co-Founder of Grability. Member since April 2021. LORENZO ALEJANDRO MENDOZA GIMÉNEZ 2 Chief Executive Officer, Member of the Board of Directors and the Executive Committee of Empresas Polar. Member of the MIT Sloan School of Manage- ment Board, the Latin American Board of Georgetown University, the Latin America Conservation Council (LACC), and the Board of Trustees of Univer- sidad Metropolitana, Ashoka Fellow and Member of the World Economic Fo- rum (named a Global Young leader in 2005). Member since April 2009. GUADALUPE PHILLIPS MARGAIN 1 Chief Executive Officer of Empresas ICA, S.A.B. de C.V. Former Chief Re- structuring Officer of Empresas ICA, S.A.B. de C.V. Former Vice-President of Finance and Risk of Grupo Televisa (left more than five years ago). Member of the Board of Directors of Ica Tenedora, Innova (subsidiary of Grupo Televisa) and Grupo Aeroportuario del Centro Norte. Member since April 2012. FERNANDO SENDEROS MESTRE 2 Executive President and Chairman of the Boards of Directors of Grupo Kuo, S.A.B. de C.V. and Dine, S.A.B de C.V. Chairman of the Board of Direc- tors of Grupo Desc, S.A. de C.V. Member of the Boards of Kimberly-Clark de México, Industrias Peñoles and Grupo Nacional Provincial. Member of Consejo Mexicano de Negocios (formerly Consejo Mexicano de Hombres de Negocios) and Member of Fundación para las Letras Mexicanas. Mem- ber since April 1992. ENRIQUE FRANCISCO JOSÉ SENIOR HERNÁNDEZ 2 Managing Director of Allen & Company LLC. Member of the Boards of Direc- tors of Coca-Cola FEMSA, Cinemark and FEMSA. Member since April 2001. EDUARDO TRICIO HARO 2 Chairman of the Board of Directors of Grupo Lala. Chairman of the Exec- utive Committee of Aeromexico and Member of the Corporate Practices Committee of Grupo Televisa. Chairman of Grupo Industrial Nuplen, Fun- dación Lala and SER, A.C. Member of the Boards of Directors of Grupo Aeroméxico, Grupo Financiero Banamex, Orbia, Aura Solar, Hospital In- fantil de México “Federico Gómez”, el Instituto Tecnológico y de Estudios Superiores de Monterrey, el Consejo Mexicano de Negocios, el Instituto Nacional de Ciencias Médicas y Nutrición “Salvador Zubirán”, the Latin America Conservation Council of the Nature Conservancy (LACC). Mem- ber since April 2012. DAVID M. ZASLAV 2 President, Chief Executive Officer and Director of Discovery, Inc. Member of the Boards of Sirius XM Radio, Inc., Lionsgate Entertainment Corp., the National Cable & Telecommunications Association, The Cable Center, Mt. Sinai Medical Center, the USC Shoah Foundation, the Partnership for New York City and the Paley Center for Media. Member since April 2015. Alternate Directors: HERBERT A. ALLEN III 3 President of Allen & Company LLC. Former Executive Vice-President and Managing Director of Allen & Company Incorporated. Member since April 2002. FÉLIX JOSÉ ARAUJO RAMÍREZ 1 Vice President of Digital and Broadcast Television and Televisa Regional. Former Chief Executive Officer of Telesistema Mexicano. Chairman of the Board of Directors of Televisión Independiente de México and Televi- mex. Member since April 2002. JOAQUÍN BALCÁRCEL SANTA CRUZ 1 Chief of Staff of the Executive Chairman of the Board of Directors of Gru- po Televisa. Former Vice-President - Legal and General Counsel of Grupo Televisa. Former Vice-President and General Counsel of Television Divi- sion. Former Legal Director of Grupo Televisa. Member since April 2000. JULIO BARBA HURTADO 1 Legal Advisor of Grupo Televisa and Secretary of the Audit and Corpo- rate Practices Committee of Empresas Cablevisión (subsidiary of Grupo Televisa). Former Legal Advisor to the Board of Grupo Televisa. Alternate member of the Board of Directors of Editorial Televisa Colombia. Mem- ber since December 1990. LUIS ALEJANDRO BUSTOS OLIVARES 1 Legal Vice-President and General Counsel of Grupo Televisa. Former Le- gal and Regulatory on Telecommunications Vice-President, former Le- gal General Director of Special Affairs, former Corporate Legal General Director, former Legal Director of Litigation of Grupo Televisa. Former General Counsel of The Pepsi Bottling Group Mexico. Former litigation lawyer at Mr. Ramón Sánchez Medal’s law firm. Member since April 2021. JORGE AGUSTÍN LUTTEROTH ECHEGOYEN 1 Vice-President and Corporate Controller of Grupo Televisa. Former Se- nior Partner of Coopers & Lybrand, Despacho Roberto Casas Alatriste, S.C. and former Controller of Televisa Corporación. Alternate Member of the Board of Empresas Cablevisión (subsidiary of Grupo Televisa). Alter- nate Member of the Board of Managers and the Executive Committee of Innova (subsidiary of Grupo Televisa). Member since April 2000. RAÚL MORALES MEDRANO 2 Partner of Chévez, Ruiz, Zamarripa y Cia., S.C. Member of the Board of Directors and of the Audit and Corporate Practices Committee of Empre- sas Cablevisión (subsidiary of Grupo Televisa). Member since April 2002. Secretary of the Board of Directors RICARDO MALDONADO YÁÑEZ Audit Committee GUILLERMO GARCÍA NARANJO ÁLVAREZ (P) 2 FRANCISCO JOSÉ CHÉVEZ ROBELO 2 JOSÉ LUIS FERNÁNDEZ FERNÁNDEZ 2 Corporate Practices and Compensation Committee JOSÉ LUIS FERNÁNDEZ FERNÁNDEZ (P) 2 GUILLERMO GARCÍA NARANJO ÁLVAREZ 2 EDUARDO TRICIO HARO 2 (P) President 1 Related 2 Independent 3 Alternate of Mr. Enrique Francisco José Senior Hernández 25 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 Se- ries 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 div- idends are subject to approval by holders of a majority of the Series “A” Shares and Series “B” Shares voting to- gether, generally, but not necessarily, on the recommen- dation 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 Se- curities 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 fil- ings with the US Securities and Exchange Commission, and this summary as well as the other filings with and submis- sions to the US Securities and Exchange Commission are and will be available through the office of investor rela- tions 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 www.televisa.com www.televisair.com 

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