Investor Presentation Third Quarter 2017 Forward looking statements - - PowerPoint PPT Presentation

Investor Presentation

Third Quarter 2017

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Forward looking statements

This presentation contains statements that constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding the current intent, belief or expectations of our officers or management with respect to future developments, including such important matters as (1) our asset growth and financing plans, (2) trends affecting our financial condition or results of

• perations, (3) the impact of competition and regulations, (4) projected capital expenditures and (5) liquidity. Forward-

looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those described in forward-looking statements included in this presentation as a result of various

• factors. These factors, many of which are beyond our control, include the actions of competitors, future global

economic conditions, market conditions, changes in interest rates and foreign exchange rates, changes in legislation or regulations applicable to our business, operating and financial risks, the outcome of legal proceedings and the factors discussed under “Risk Factors” in our annual report on Form 20-F for the year ended December 31, 2016. The results in this presentation appear as they were originally reported in our financial statements.

Overview 3Q’17 Results Underlying Drivers

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Overview

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Our Core Businesses

Fully Integrated Media and Distribution

Content

Advertising

Four broadcast channels in Mexico City and affiliated stations

Network Subscription

26 pay-tv networks and 52 feeds in Mexico and globally

Sky**

Video: 8 million subs A leading DTH system in Mexico, operating also in Central America and the Dominican Republic

Cable

Video: 4.1 million RGUs * Data: 3.6 million RGUs Voice: 2.1 million RGUs A leading cable operator in Mexico

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Univision***

Ownership of approximately 36% of equity and warrants on a fully diluted, as-converted basis Licensing & Syndication

Univision royalties, other licensing fees, and exports to +/- 80 countries

* Revenue generating units ** In partnership with AT&T which owns

41.3% of Sky.

*** Televisa has equity and warrants

which upon their exercise, would represent approximately 36% on a fully diluted, as-converted basis

• f

the equity capital in Univision Holdings Inc.

Revenue breakdown

Consolidated net revenue US$4.98b(1)

36% 33% 22% 9%

LTM 3Q’17 US$mm(2) 3Q’17 YoY growth(3) LTM YoY growth(3)

36% Content 1,831

• 7.5%
• 1.9%

22% Advertising 1,143

• 8.4%
• 4.5%

4% Network Subsc. 207

• 17.4%
• 8.8%

10% Licensing and Synd. 482

• 0.1%

8.5%

33% Cable 1,710 2.1% 5.2% 22% Sky 1,155

• 1.1%

3.2% 9% Other 466

• 11.4%

7.0%

(1) As of LTM 3Q’17. Consolidated net sales include elimination of intersegment operations amounting to US$179.7 million. (2) Equivalent in US$ at the FX rate of 19.1577Ps/US$. The average of rates published by Mexico’s Central Bank for LTM ending September 30, 2017. (3) 3Q’17 year over year and LTM growth in peso terms. 6

Operating segment income(1)

Net OSI(2) of US$1.9b

36% 26% 36% 2%

(1) Operating Segment Income – OSI – is defined as operating income before depreciation and amortization, corporate expenses, and other expense net. (2) Net OSI is after corporate expenses. As of LTM ending September 30, 2017 Net OSI includes Corporate Expenses of US$118.9 million. (3) Equivalent in US$ at the FX rate of 19.1577Ps/US$. The average of rates published by Mexico’s Central Bank for LTM ending September 30, 2017. (4) 3Q’17 year over year and LTM growth in peso terms. 7

LTM 3Q’17 US$mm(3) LTM YoY growth(4) Margin LTM 3Q’17

36% Content 714

• 5.9%

39.0%

26% Sky 533

5.3% 46.1%

36% Cable 716

6.3% 41.8%

2% Other 33

• 22.3%

7.1% Share of OSI

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US$, 65% Ps$, 35%

Debt composition

US$, 68% Ps$, 31% Oth., 1%

Financial Assets

Conservative balance sheet

Capacity to continue supporting strategic initiatives

*Includes capital lease obligations and other notes payable. ** Financial Assets: Cash, temporary investments and other long-term available for sale and held-to-maturity investments . Source: Grupo Televisa's public filings. Total debt* (3Q'17): Ps$126.4 billion Financial Assets**: Ps$52.4 billion Net debt: Ps$74.0 billion Average maturity: 15.22 years Moody’s Baa1 S&P BBB+ Fitch BBB+

June 29, 2017 Standard & Poors revised its liquidity assessment of Televisa from strong to exceptional and affirmed Televisa’s rating

• f ‘BBB+’ on a global scale and ‘mxAAA’ on a

national scale.

• 0.2
• 0.1

0.1 0.6 1.3 1.1 1.4 1.5 1.6 2.1 1.9

• 0.4

0.0 0.4 0.8 1.2 1.6 2.0 2.4 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 LTM 3Q17

Net Debt / EBITDA Ratio

3Q’17 Results

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3Q'17 Results: Highlights

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• Consolidated Net Sales and Operating Segment Income reached Ps.22.8

billion and Ps.9.3 billion, respectively

• Prime time1 ratings of Channel 2 continued their positive trend, achieving 26%

higher ratings than those reached during the third quarter of last year

• Cable segment continued to show positive results, adding close to 200

thousand RGUs during the quarter

• Sky reached an Operating Segment Income margin of 48.9%, the highest in

nine years

(1) Monday to Friday

3Q’17 Results: Content

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Financial Results Billions of Ps. Content Revenue Mix

Advertising Network Subscription Revenues Licensing and Syndication

• Content revenues decreased 7.5% during 3Q’17
• Operating segment income margin reached

38.7%

• Decline in revenues is explained mainly by

lower advertising sales

62% 11% 27%

$8.68 $8.02 $3.64 $3.10 42.0% 38.7% 3Q16 3Q17 Revenues OSI OSI margin

3Q'17 Results: Content

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Financial Results – Advertising Billions of Ps. Financial Results – Network Subscription Revenues Billions of Ps.

• Advertising revenues decreased by 8.4% in 3Q’17
• Ratings increase combined with advertising sales

mechanism is allowing our clients to seek the lowest cost-per-rating point.

• This issue will be addressed with the new sales

mechanism to be implemented for 2018.

• Revenues decreased 17.4% year-over-year in

3Q’17, mainly explained by a competitor that is no longer carrying our pay TV networks.

$5.40 $4.94 3Q16 3Q17 $1.13 $0.93 3Q16 3Q17

3Q'17 Results: Content

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Financial Results – Licensing and Syndication Billions of Ps. Univision Royalties US$ millions

• Licensing and Syndication revenues were in line

with last year, reaching Ps.2,151.4 million

• Third-quarter royalties from Univision were in

line with last year, reaching U.S.$80.6 million

$2.15 $2.15 3Q16 3Q17 $80.2 $80.6 3Q16 3Q17

3Q'17 Results: Cable

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Financial Results Billions of Ps. Cable RGUs (millions)

• During 3Q’17, sales increased by 2.1%. OSI increased

by 2.3% and the margin reached 42.3%

• Results were partially offset by our network operations

business, where we have seen a reduction in the number of new government contracts up for tender as well as a reduction in the rates we charge due to intense competition.

• Revenue and OSI growth driven by RGU net additions

in video (31,000), Data (145,000) and voice (23,000), during the quarter.

• This is the fastest pace of growth of the last five

quarters.

$8.16 $8.32 $3.44 $3.52 42.2% 42.3% 3Q16 3Q17

Revenues OSI OSI margin

4.2 4.1 3.4 3.7 2.1 2.1 9.7 9.9 3Q16 3Q17

Video RGUs Data RGUs Voice RGUs

3Q'17 Results: Sky

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Financial Results Billions of Ps. Sky Subscribers (millions)

• Revenue decreased by 1.1% and OSI increased by 5.0%
• OSI margin was 48.9% during the third quarter, the

increase in the margin by 290 basis points from same quarter last year is mainly the result of management’s strong discipline in costs and expenses.

• This quarter Sky added 1,801 subscribers
• Sky continues to be impacted by the extraordinary growth

in net additions achieved in 2016 due to the analog shut down.

• Sky ended the quarter with 184,582 subscribers in Central

America and the Dominican Republic

$5.5 $5.4 $2.5 $2.7 46.0% 48.9% 3Q16 3Q17

Revenues OSI OSI margin

7.9 8.0 8.0 8.0 8.0 3Q16 4Q16 1Q17 2Q17 3Q17

Subscribers

Underlying Drivers

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Underlying Drivers

Drivers that are shaping our business, long term

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I. Advertising Revenue II. Network Subscription Revenue III. Licensing and Syndication Revenue IV. Sky Pay TV Revenue V. Cable Video RGUs VI. Cable Voice RGUs VII. Cable Data RGUs VIII. Position as a Leading Cable Operator IX. Diversification

Advertising Revenue

Restructuring ad business to drive long-term growth

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Regulatory and competitive challenges have overshadowed underlying growth ´06 Electoral reform and resulting loss of political ad revenue ´09 Mexico´s GDP drops by 5%; Televisa’s broadcast revenues grow 0.5% ´11 Loss of AMX/Carso as customer; represented 4% of broadcast revenues in 2010 ´14 Ban on TV advertising of food/beverage with high caloric content during certain times of day (starting Q3´14) Ban on most government advertising during election time (Q2´09, Q2´12, Q2´15, Q2´16, Q2´17)

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Source: Grupo Televisa's public filings

20.6 20.5 21.1 21.5 22.7 23.2 23.9 24.9 25.5 23.0 23.2 21.9

0.0 5.0 10.0 15.0 20.0 25.0 30.0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 LTM 3Q17 MX$ billions

Advertising Revenues

Advertising Revenue (Cont’d)

The restructuring is a multi-year process

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3Q’14 Ban on advertising of food and beverage with high caloric content during certain times of day 1Q’15 Restructure of our commercial area 3Q’15 Introduction of new rate card; customers minimize scatter market buys 2H’15 Customers stay away from scatter market for the balance of 2015 Dec’15 Closing of 2016 upfront negotiations under new pricing structure Dec’16 Customer deposits grow 8.9% in 2017 upfront 3Q’17 Prime time ratings of Channel 2 continued their positive trend, achieving 26% higher ratings than those reached during 3Q’16

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Source: Grupo Televisa's public filings and Nielsen

Upfront sales are already being negotiated under the new pricing mechanism, which will allow us to make a better use of our inventory in 2018.

8.2% 6.0%

• 6.4%

3.8% 1.6%

• 16.4%
• 8.9%
• 11.0%
• 3.1%

2.1%

• 1.5%

4.0%

• 7.8%
• 9.8%
• 8.4%

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

YoY % change in Advertising Revenues

Advertising Revenue (Cont’d)

Broadcast is still the most effective advertising platform

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The majority of our customers are non- durable CPG companies, retailers, and service providers in need for scale and efficiency The relevance of online advertising continues to grow, but free-to-air advertising remains the largest and most effective platform

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Network Subscription Revenue

Still among the most watched networks in Mexico

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• CAGR of 10.5% in Network Subscription

Revenues 2017 – LTM 3Q’17, since 2007.

• The decrease was driven mainly by the

fact that a competitor is no longer carrying our pay TV networks. This is the last quarter with the adverse comparison against last year.

• One of the most important providers of

content for pay TV platforms in Mexico

• Networks are distributed internationally

(1) Starting on September 10, 2013 we had to forego retransmission revenues as a result of the implementation of the must-offer rules that came into effect with

the telecommunications reform. Prior to 2011, network subscription revenues were classified under Pay Television Networks and included as additional revenues.

I II

(1)

1.5 1.8 2.1 2.4 2.6 3.2 3.3 2.9 3.6 4.4 4.0 0.0 1.0 2.0 3.0 4.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 LTM 3Q17

Network Subscription Revenues

138 147 143 156 225 248 273 314 311 325 326 50 100 150 200 250 300 350 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 LTM 3Q17

Royalties (US$mm)

Univision Royalties

Licensing and Syndication Revenue

Approaching 2018’s step-up by 38% in royalty rate

22 22 (1) In 2014, Univision transmitted the World Cup which contributed with US$174.2 million of incremental net advertising revenue.(2) Prior to 2011, Licensing and Syndication revenues were classified under Programming Exports and are not directly comparable Source: Grupo Televisa's and Univision’s public filings

• Univision royalties make up most of

Licensing and Syndication revenue

• Step-up in the royalty rate by 38%

starting in 2018

• Third-quarter royalties from Univision

were in line with last year, reaching U.S.$80.6 million

(1)

III The Royalty agreement does not expire unless Televisa voluntarily sells two thirds of its investment, but in no event earlier than 2025

(2)

Sky Pay TV Revenue

Great opportunities ahead

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Source: Grupo Televisa’s public filings.

• Sky revenues have doubled in size in

just seven years

• Subscribers have expanded at a CAGR
• f 19.9% since the launch of VeTV in

2009, its low-cost pre-paid offer

• High gross additions recorded last year

has increased the number of cancellations for 2017.

*

ARPU opportunity: majority of Sky customers subscribe to its lowest-cost pay TV offering IV

7.7 8.4 9.2 10.0 11.2 12.5 14.5 16.1 17.5 19.3 21.9 22.1

481 464 457 448 375 295 263 240 230 230 239 230

5 10 15 20 25 100 200 300 400 500 600 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 LTM 3Q17

Sky ARPU and Revenues

Revenues (Ps. billions) ARPU (Ps.)

Cable Video RGUs

60% penetration still provides with growth opportunities

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Source: Grupo Televisa's public filings *Cuarto Informe Trimestral Estadístico 2016-2017 - Instituto Federal de Telecomunicaciones

• Organic growth has been complemented

by the acquisition of four cable operators starting in 2011

• As of 3Q’17, a total of 4.1 million video

RGUs, close to 14 million homes passed

• Mexico’s penetration of pay TV remains

relatively low at 63%, when compared with other Latin-American countries

CAGR in video RGUs of 11.4% since 2009, including acquisitions V

1.8 2.0 2.2 2.3 2.5 3.4 4.1 4.2 4.1

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5

2009 2010 2011 2012 2013 2014 2015 2016 3Q17 millions

Video RGUs

Cable Voice RGUs

Gaining market share

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* As of 2Q’17. Source: Grupo Televisa's public filings

• Overall number of fixed lines is

expanding slightly as a result of attractive offers

• Televisa Cable has become the second

largest provider of voice services in terms of number of customers

With a share of fixed-line voice customers in Mexico of 10.4%*, the

• pportunity is still significant

VI

0.4 0.5 0.6 0.8 0.9 1.2 1.9 2.1 2.1

0.0 0.5 1.0 1.5 2.0 2.5

2009 2010 2011 2012 2013 2014 2015 2016 3Q17 millions

Voice RGUs

Cable Data RGUs

Data services are the main driver of growth

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* As of 2Q’17. Source: Grupo Televisa's public filings, IFT & OECD public information.

• Mexico has 50.8%* penetration of data

services (based on % of households with internet services).

• Most of our customers subscribe to

Televisa Cable’s least expensive data plan

• Current Televisa Cable business offer

includes multiple high-speed data plans: Residential: 5, 10, 20, 50 & 100 mbps Business: 25, 50, & 100 mbps

• As adoption of computers and tablets

increases, so will the subscription to high speed data services

Televisa Cable business captures 21.5%* of data customers in Mexico, compared to 16% at the end of 2014 VII

0.7 0.8 1.1 1.3 1.7 2.3 3.1 3.4 3.6

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

2009 2010 2011 2012 2013 2014 2015 2016 3Q17 millions

Data RGUs

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´06 Cablevision completes digitalization of its network ´06 Acquisition of 50% of TVI ´07 Cablevision launches voice services ´09 Televisa Cable launches YOO ´09 Cablevision begins conversion to fiber- to-the-curve ´11 Acquisition of 100% of Cablemás ´14 Acquisition of 100% of Cablecom ´14 Televisa Cable launches IZZI ‘15 Acquisition of 100% of Telecable ’16 Acquisition of the remaining 50% of TVI ’16 Conclusion of the rebuilding phase of main cable systems

Position as a Leading Cable Operator

Multiple strategic and operational milestones

VIII

Source: Grupo Televisa's public filings

Televisa Cable RGUs have grown at a CAGR of 17.7% since 2009

2.8 3.3 3.9 4.4 5.1 6.9 9.0 9.7 9.9

0.0 2.0 4.0 6.0 8.0 10.0 12.0 2009 2010 2011 2012 2013 2014 2015 2016 3Q17

RGUs Televisa Cable (million)

Video RGUs Data RGUs Telephony RGUs

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VIII Position as a Leading Cable Operator (Cont’d)

Resulting in Mexico’s 2nd largest telecom network

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VIII Position as a Leading Cable Operator (Cont’d)

Overcoming the side effects of rapid growth

Single Brand & Positioning Unified and simplified offer Single company & work culture Single IT Platform & architecture Aligned Technologies and Network capabilities Multiple brands and value propositions Diverse and complex product set Multiple companies and work cultures Heterogeneous, fragmented and scattered IT Platforms Networks with different technologies & capabilities

2017 Pre-Integration

Investments in our cable assets have been put to good work:

• Over 120 thousand km (MSOs); 36

thousand km are fiber

• Additional 31 thousand km in Bestel,

Metrored and GTAC backbone

• More than 97% has bidirectional

capabilities

• More than 76% operates with 1 GHz;

approximately 16% with 870 MHz

• DOCSIS 3.0 has been implemented in the

entire network and the national backbone is currently carrying up to 100 G

• Close to 14 million homes passed

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With cable capex coming down, the trajectory of free cash flow is very favorable VIII

Source: Grupo Televisa's public filings *Guidance

Position as a Leading Cable Operator (Cont’d)

Most of the heavy capital expenditures are behind us

200 400 600 800 1,000 1,200 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* US$ millions

Capex – Cable segment

0.0 10.0 20.0 30.0 40.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 LTM 3Q17

• Ps. Billion

OSI by Business Segment

Content Sky Cable

• Pub. & Other

20 40 60 80 100 120 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 LTM 3Q17

• Ps. Billion

Revenue by Business Segment

Content Sky Cable

• Pub. & Other

Ongoing diversification of top line and OSI*

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• Sky and Cable revenues have expanded at a CAGR of

10.4% and 29.6%, respectively, since 2007

• Content revenues have expanded at a CARG of 3.3%,

since 2007

Source: Grupo Televisa's public filings *OSI: Operating Segment Income

• Rapid OSI expansion driven by Sky and Cable, CAGR of

10.0% and 31.5%, respectively, since 2007

• Potential for OSI to continue expanding as businesses

grow and margins expand

• Diversified portfolio of assets provide additional

sources of growth

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Investor Relations Website: www.televisair.com

Carlos Madrazo VP, Head of Investor Relations madrazov@televisa.com.mx Santiago Casado Investor Relations Director scasado@televisa.com.mx Paola Talancón Investor Relations ptalancon@televisa.com.mx + (52) 55 5261 2445

• Av. Vasco de Quiroga 2000, A4.
• Col. Santa Fe
• CP. 01210

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