Investor Presentation Second Quarter 2016 Forward looking statements - - PowerPoint PPT Presentation

Investor Presentation

Second Quarter 2016

2

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, 2015. The results in this presentation appear as they were originally reported in our financial statements.

Overview Content Cable Sky

3

Our Our Cor Core Businesses Businesses

Content and Distribution

Univision royalties Content licensing fees Exports to 70+ countries

Advertising Network Subscription Licensing & Syndication

Four broadcast channels in Mexico City complemented through affiliated stations 26 pay‐tv networks and 51 feeds in Mexico and globally

Sky*

Video: 7.8 million subs A leading DTH system in Mexico and C. America

Cable

Video: 4.2 million RGUs(1) Data: 3.3 million RGUs Voice: 2.1 million RGUs In Mexico

4

In addition, Televisa has equity and warrants which upon its exercise and subject to any necessary approval from the Federal Communications Commission (“FCC”) in the United States, would represent approximately 36% on a fully diluted, as‐converted basis

• f the equity capital in Univision Holdings Inc.

* In partnership with AT&T which owns 41.3% of Sky.

(1) Revenue generating units

Revenue nue br break eakdown

Consolidated net revenue US$5.3b(1)

38% 32% 22% 8%

LTM 2Q'16 US$mm(2) 2Q'16 YoY growth(3) LTM YoY growth(3)

38% Content 2,060 11.0% 3.3%

25% Advertising 1,327 2.1% ‐6.2% 4% Network Subsc. 239 34.7% 30.8% 9% Licensing and Synd. 494 25.2% 24.4%

32% Cable 1,747 12.9% 20.4% 22% Sky 1,202 18.1% 13.8% 8% Other 469 7.8% ‐1.9%

(1) As of LTM 2Q'16. Consolidated net sales include elimination of intersegment operations amounting to US$143.7 million. (2) Equivalent in US$ at the FX rate of 17.3334 Ps/US$. The average of rates published by Mexico’s Central Bank for LTM ending June 30, 2016. (3) 2Q'16 year over year and LTM growth in peso terms.

5

5

Oper Operating segm segmen ent inc income(1)

(1)

Net OSI(2) of US$2.0b

40% 25% 33% 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 June 30, 2016 Net OSI includes Corporate Expenses of US$123.0 million. (3) Equivalent in US$ at the FX rate of 17.3334 Ps/US$. The average of rates published by Mexico’s Central Bank for LTM ending June 30, 2016. (4) LTM year year over year growth in peso terms.

6

6

LTM 2Q'16 US$mm(3) LTM YoY growth(4) Margin LTM 2Q'16

40% Content 860

‐1.6% 41.8%

25% Sky 547

10.3% 45.5%

33% Cable 717

25.6% 41.0%

2% Other 41

2.5% 8.8%

0.0 10.0 20.0 30.0 40.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 LTM 2Q16

• Ps. Billion

OSI by Business Segment

Content Sky Cable

• Pub. & Other

20 40 60 80 100 2007 2008 2009 2010 2011 2012 2013 2014 2015 LTM 2Q16

• Ps. Billion

Revenue by Business Segment

Content Sky Cable

• Pub. & Other

Ongoi Ongoing div diversific ification ion of

• f our
• ur to

top line line and and O. O.S.I.

A CAGR of 10% and 9%, respectively, since 2007

7

• Sky and Cable revenues have expanded at a CAGR of

11.3% and 33.4%, respectively, since 2007.

• Content revenues have remained resilient in spite of many

regulatory and competitive challenges over the years.

Source: with information from Grupo Televisa's public filings.

• Rapid OSI expansion driven by Sky and Cable.
• Potential for OSI to continue expanding as businesses

grow and margins expand.

• Diversified portfolio of assets provide additional sources
• f growth.

‐0.2 ‐0.1 0.1 0.6 1.3 1.1 1.4 1.5 1.6 1.8 ‐0.4 0.0 0.4 0.8 1.2 1.6 2.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 LTM 2Q16

Net Debt / EBITDA Ratio

8

US$, 65% Ps$, 35%

Debt composition

US$, 76% Ps$, 24%

Cash and equivalents

Conser Conservativ tive balance balance shee sheet

Capacity to continue supporting strategic initiatives

* Includes capital lease obligations Source: with information from Grupo Televisa's public filings. Total debt* (2Q'16): Ps$126.3 billion Cash and equiv.: Ps$63.9 billion Net debt: Ps$62.3 billion Average maturity: 16.3 years Moody’s Baa1 S&P BBB+ Fitch BBB+

200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 LTM 2Q16 US$ millions

Capex

Content Sky Cable

Capit Capital expenditur penditures fue fueling ling gr growth th

The capex profile has changed along with the Company

(1) During first quarter 2010, we booked US$147mm related to the new satellite IS‐16, however US$111mm were payable in 2011.

Source: with information from Grupo Televisa's public filings. 9

• Since 2007, Televisa has invested close to US$8 billion in

customer premise equipment, upgrades to the network, satellite capacity, and other capital expenditures driven by growth.

• Through Sky and Cable, since 2007, Televisa has grown its

RGUs close to five times.

• As of 2Q´16, Televisa reached over 17 million video, voice

and data revenue generating units

(1)

2.0 2.4 2.8 3.3 3.9 4.4 5.1 6.9 9.0 9.5 1.6 1.8 2.0 3.0 4.0 5.2 6.0 6.6 7.3 7.8

3.6 4.1 4.8 6.3 7.9 9.5 11.1 13.5 16.3 17.3 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q16 RGUs (millions)

Total Televisa Revenue Generating Units

RGUs Cable Subs Sky

59.6% 16.4% 5.4% 3.4% 1.6% 3.5% 4.3% 5.6%

AMX TEF AT&T Otros Dish Mega TV‐Sky TV‐Cable

10

Total Revenues: Ps.388.9 billion 2015 Total Subscribers: 160.0 million 2015

63.9% 7.9% 7.0% 6.2% 1.2% 3.0% 4.9% 5.7%

AMX TEF AT&T Other Dish Mega TV‐Sky TV‐Cable

The The te teleco com opportunity

• pportunity is

is signific significan ant

Just getting started

Source: with information from Grupo Televisa's public filings, companies’ filings, and internal estimates.

Ma Market et Highligh ghlights

A diverse shareholder base

11

• Publicly traded in Mexico since 1991 and in the

NYSE since 1993.

• One of the 10 largest companies in Mexico

based on market capitalization.

• Average daily traded value of approximately

US$64 million (1Q’16).

• Float of 85% of its total capital.
• Coverage by 16 sell side analysts and research

houses.

• Average turnover for top 30 institutional shareholders is

35%. (as of 1Q’16)

• 83% of institutional shareholdings are in the form of ADRs

and 17% are in the form of CPOs. (as of 1Q’16)

Source: Ipreo and internal estimates.

Public Market Highlights

Azcárraga Trust, 14.7% North America, 62.6% Europe, 5.4% Other, 5.5% Unidentified, 11.8%

Ownership by Geographic Region

Me Media and and Te Telco dynam dynamics ics – w – watching them them closely closely

Important differences between Mexico or Televisa and the U.S.

Size of the advertising market Allocation of advertising budgets Demand for pay television Transformational technologies Dependence on content with short life‐span

12

Siz Size of

• f the

the adv advertising ertising ma market et

The Mexican advertising market is undeveloped

1.63% 1.61% 1.14% 1.02% 0.97% 0.94% 0.84% 0.78% 0.68% 0.58% 0.48% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80%

Total Advertising Spend / GDP

13 Source: MoffetNathanson, The World Bank, MAGNA Global, company reports, Zenith Ad Spend report and JP Morgan India China Brazil Russia Mexico Spain South Korea Italy France Germany Canada Japan UK Australia United States GLOBAL

100 200 300 400 500 600 10,000 20,000 30,000 40,000 50,000

Ad Spend Per Capita 2014 GDP Per Capita (2014E)

GDP vs. Ad Spend Per Capita

• The level of advertising expenditures to GDP is very much

determined by the level of economic development.

• Mexico has significant room for ad spend upside as GDP

per capita increases over time.

• Mexico´s total ad spend to GDP has been growing slowly

but still has much room for improvement.

• At 0.48%, it is less than that of Brazil, Argentina and Chile.

Alloc Allocation tion of

• f adv

advertising ertising budg budgets

In Mexico, the relative scale of FTA is very important

• In the U.S. online already accounts for close to 30% of

total ad spend.

• Pay‐tv advertising spend is almost as relevant as FTA

advertising spend.

• In Mexico, FTA advertising has expanded at a CAGR of

3.4% from 2005 through 2014.

• Ad spend on pay TV has been growing, but still remains a

fraction of total TV ad spend.

14 Source: Grupo Televisa's public filings, Morgan Stanley analysis, and Mexican Media Association

‐ 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Ps$ million

Advertising by Platform ‐ Mexico

FTA Pay‐TV Radio Outdoor Newspapers Magazines Other Online ‐ 20 40 60 80 100 120 140 160 180 200 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

US$ billion

Advertising by Platform ‐ US

FTA Pay TV Radio Outdoor Newspapers Magazines Other Online

19% 22% 24% 25% 26% 29% 36% 40% 45% 48% 52% 56% 82% 82% 83% 83% 82% 84% 84% 85% 85% 84% 84% 83% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Pay TV Penetration

Mexico USA

Sky 42% TelevisaCable 23% Megacable 16% Dish 15% Other 4%

Market Share Pay TV – Subs*

Dem Demand and fo for pa pay te television

Unlike the U.S., Mexico pay‐tv penetration is growing fast

• Analysts estimate that pay‐tv penetration could reach

65% to 70% of total Mexican households.

• The pay‐tv industry in Mexico added close to 1.1 million

video subscribers in the last 12 months*.

• 39% of pay‐tv subs are cable subs, and 57% are DTH subs

15

Source: with information from Grupo Televisa's public filings, internal estimates and Morgan Stanley * As of 2Q'16

10 20 30 40 50 60 70 80 90 100 ´01 ´02 ´03 ´04 ´05 ´06 ´07 ´08 ´09 ´10 ´11 ´12 ´13 ´14 Smartphone PayTV Mobile Computer Internet

Access to Key Technologies Mexico

Trans ansform rmational ional technologies chnologies

Mexico is a few years behind

• Less than one fifth of smartphones are connected to a

data plan. Majority of them relies on WiFi. (source: CIU)

• Average internet speed (Mbps) ranges from 2.27 Mbps

(Telmex) to 3.06 (Televisa). (source: Netflix)

• Less than half of the population has access to an internet‐

connected computer.

Access to Key Technologies US

16

• At least 80% of the population already has a computer,

internet, pay‐tv and a mobile phone. Over 60% has a smartphone.

• Average internet speed (Mbps) in the U.S. is close to 12

Mbps.

Source: IFT, World Bank, PEW Research, Statista, Morgan Stanley, CONAPO, INEGI, Akamai, Internal estimates. 10 20 30 40 50 60 70 80 90 100 ´04 ´05 ´06 ´07 ´08 ´09 ´10 ´11 ´12 ´13 ´14 Smartphone Pay TV Mobile Computer Internet

Dependence Dependence on

• n co

conte ntent wi with short short lif life‐span span

Less sports and news, more scripted content for Televisa

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2010 2011 2012 2013 2014 1H´15

Televisa Share of Gross Rating Points (GRPs)

Drama Various Movies & Series News Cartoons Magazine Sports Various, 44% Drama, 34% Sports, 5% Kids, 8% News, 9%

Televisa Share of GRPs

Various, 29% Drama, 22% Sports, 31% Kids, 1% News, 17%

U.S. FTA Share of GRPs

• Televisa is known for its dramas, but it produces all genres of content.
• Televisa‘s exposure to content with short‐life span (sports and news) is one‐third

that of the US´s.

• Highly profitable scripted content delivers the majority of Televisa´s GRPs.

17 Various includes: comedy shows, game shows, cultural programming, debates, musicals, reality shows, religion and talk shows, among others. Source: Televisa, Nielsen & MoffetNathanson. May 27, 2015.

Overview Content Cable Sky

18

Thr Three pillar pillars of

• f our
• ur co

conte ntent st strat rategy

19

• I. Strengthening our

content

• II. Re‐pricing our

advertising inventory

• III. Expanding sources of

content revenue

Improving the appeal

• f our

prime time dramas Replacing less popular 3rd party content with own Developing new formats Content synergies with Univision Producing premium content for

• ur pay TV

networks Acquiring selected exclusive 3rd party content Reinforcing

• ur OTT

platform

I.

• I. Str

Streng ngthening thening our

• ur co

conte ntent

Exploring a number of initiatives

20

II.

• II. Repricing

pricing our

• ur adv

advertising ertising in inventory

• ry

The cost of FTA advertising in Mexico is very low vs ROW

1.2 2.3 3.2 3.4 3.7 4.9 5 5.3 5.6 5.7 6 6.4 6.5 6.8 6.8 6.9 7 7.4 8 8.9 8.9 9.3 9.7 10.6 11.1 14.4 15.5 25.9 27.2

Turkey Mexico Portugal Poland Slovakia Hungary Italy Check Republic France Greece Spain Korea UK New Zealand Japan Ireland Holland Sweden Chile Denmark Germany Findland Austria USA Canada Norway Australia Switzerland Belgium

US$ per CPM1 21

1 Cost per thousand 30" net people + 18 yrs

Source: Cortex Media, 2012

32.8 31 10.6 40.2 37 15.9 22.2 18.4 12.6 24.6 19.1 17.2 20 40 60 80 100 120 Population FTA Pay‐TV Population (millions) D/E D+ C A/B/C

II.

• II. Repricing

pricing our

• ur adv

advertising ertising in inventory

• ry (Cont´d)

The reach and efficiency of our FTA channels is unparalleled

22

• Pay‐tv penetration has increased significantly, but its

potential for launching and maintaining mass market brands in an optimal manner is still limited.

Reach by socio‐economic level

(FTA TV vs 117 pay TV )

• On pay‐tv, 38 spots provide the reach of 1 spot on free

to air TV.

• Due to its low cost, ample reach, and efficiency, FTA

television is the most effective media for many advertisers.

Source: E&Y Comunicación Masiva en México 2015

10 20 30 40 50 60 70 80 90 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67

% of HH reached Number of spots

Relative Reach per Platform

pay‐TV FTA TV

II.

• II. Repricing

pricing our

• ur adv

advertising ertising in inventory

• ry (Cont´d)

Our customers: mostly non‐durable consumer goods companies

III.

• III. Expanding

Expanding other

• ther sour

sources ces of

• f co

conte ntent revenue nue

Network Subscription Revenue

• 5 of top 8 entertainment, 3 of top 6 movie, top 3 music

networks.

• CAGR of 11.3% in average ratings per channel among its

top distributed networks since 2005.

24

(1) Refers to the number of channels times the number of households reached. (2) Prior to 2011, network subscription revenues were classified under Pay Television Networks and included as additional revenues. (3) Starting on September 10, 2013 we had to forgo retransmission revenues as a result of the implementation of the must‐offer rules that came into effect

with the telecommunications reform.

(1)

• Network Subscription revenue should benefit from

growing pay TV penetration in Mexico and abroad, and the growing appeal of our pay TV networks.

(2) (3)

84 95 116 136 165 196 223 241 268 273 15 15 17 17 21 22 24 25 25 26

‐10 ‐5 5 10 15 20 25 30 50 100 150 200 250 300

2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q16 Number of Channels Millions of RGUs

Network Subscription RGUs and Channels

RGUs Channels 1.5 1.8 2.1 2.4 2.6 3.2 3.3 2.9 3.6 4.1 1 2 3 4 2007 2008 2009 2010 2011 2012 2013 2014 2015 LTM 2Q16

Network Subscription Revenues

Revenues Ps. billions

69 72 68 87 169 190 172 178 175 170 50 100 150 200 250 300 350 2007 2008 2009 2010 2011 2012 2013 2014 2015 LTM 2Q16

(US$mm)

Non‐Univision Revenues

138 147 143 156 225 248 273 314 311 325 50 100 150 200 250 300 350 2007 2008 2009 2010 2011 2012 2013 2014 2015 LTM 2Q16

Royalties (US$mm)

Univision Royalties

III.

• III. Expanding

Expanding other

• ther sour

sources ces of

• f co

conte ntent revenue nue (Cont´d)

Licensing and Syndication Revenue

25

(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. (3) Upon a Univision IPO the agreement is extended to the later of 2030 or 90 months following a Televisa sell down.

Source: with information from Grupo Televisa's and Univision public filings.

• Starting in 2011, a new royalty rate of 11.84% on total

audio‐visual revenues plus 2% on revenues above $1.66 billion.

• Step‐up in 2018 from 11.84% to 16.13% an then to 16.45%

in June 2018.

• License agreement expires the later of 2025(3) or 90

months following a Televisa sell down.

(1)

• Exports of our content have remained stable in the last

few years.

• In 2015 we licensed over 80 thousand hours of content

70+ countries.

(2)

Tr Trajectory of

• f our
• ur Con

Conten ent business business

Strong O.S.I. in spite of challenges

For the years 2007 to 2010, Content O.S.I. is the sum of TV, Broadcasting, Pay TV Networks, and Programming Exports on line O.S.I. Source: with information from Grupo Televisa's public filings.

´06 Electoral reform and resulting loss of political ad

• revenue. Ban on most government advertising

during election time (Q2´09, Q2´12, Q2´15) ´09 Mexico´s GDP drops by 5% ´11 Loss of AMX/Carso, representing 4% of total broadcast revenues. ´13 Loss of part of the retransmission revenue (starting Q3´13) from pay‐tv platforms in Mexico ´14 No more TV advertising of food and beverage with high caloric content in certain day‐parts (starting Q3´14) ´15 Restructuring of advertising sales business

26

Regulatory & Competitive Challenges

12.7 13.0 13.4 13.8 14.5 15.4 15.6 15.5 14.6 14.9

0.0 4.0 8.0 12.0 16.0 20.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 LTM 2Q16 Ps$ billion

Operating Segment Income (Ps billion)

Content OSI

Overview Content Cable Sky

27

Source: with information from Grupo Televisa's public filings.

Ex Extensiv nsive Cable Cable In Infr frastructur tructure

Mexico´s 2nd Largest

• Network with over 110

thousand km (MSOs), 31 thousand of which are fiber. Additional 30,000 km in Bestel, Metrored and GTAC backbone.

• More than 94% has

bidirectional capabilities.

• More than 58% operates

with 1 GHz. Approximately 26% with 870 MHz.

• Cablevisión, Cablemás, and

TVI operate using DOCSIS 3.0. Close to 80% of their customers have DOCSIS 3.0 equipment.

• 12.5 million homes passed

28

Ag Aggr gressiv essive of

• fferings

rings

Providing the market with better, low‐cost services

Unlim Unlimited Telephon phony

Unlimited calls to fixed and mobile numbers in Mexico, the US, Canada, Latin America, and Europe 6 digital solutions

Hi High gh Speed eed In Internet

10Mbps of speed Izzi

• Dr. WiFi assistance

24/7 support Access to more than 8,000 hotspots through the national WiFi network “Zona YOO”

Ps 400/mo.

(taxes included) Pa PackTV

50+ SD and access to TV everywhere and catch‐up with VEO

Pa PackHDMax

180+ SD and HD and access to TV everywhere and catch‐up with VEO App and dual tuner DVR

Pa PackHD

100+ SD and HD and access to TV everywhere and catch‐up with VEO

+ Ps Ps 150 150 +P +Ps 300 300 +P +Ps 500 500

IZZI, a double‐play telecom offer with a video add‐on

29

Source: izzi telecom.

All figures include taxes and are denominated in Mexican pesos For illustrative purposes only. With information from Telmex, IFT, and izzi as of April 7, 2016. LD = Long Distance.

1 Excludes Alaska, Hawaii, and PR. 2 Excludes Cuba, satellite destinations, and some remote islands. 3 Includes 50 countries in America and Europe. 4 Includes 90 countries around the world, excludes Cuba, satellite destinations, islands in Africa and Oceania. 5 This package is also offered with internet speeds of up to 20 Mbps for $499 and of up to 50 Mbps for $699. 6 Telmex is currently offering 100 Mbps on this package until June 30, 2016 where their infrastructure allows it.

izzi

TELMEX Paquete quete 333 333 Paquete quete Conect Conectes es 5 Paquete quete Acer erques ques To Todo Mé México Sin Sin Lí Límites Local calls Unlimited 100 calls 100 calls Unlimited

(up to 1,000 calls)

Unlimited

(up to 1,000 calls)

Calls to mobile phones Unlimited Not included 200 min. Unlimited

(up to 600 min.)

Unlimited

(up to 600 min.)

LD to the US and Canada Unlimited Not included Unlimited 1

(Up 1,000 min.)

Unlimited 1

(Up 1,000 min.)

Unlimited

(Up 1,000 min.)

Global LD Unlimited 2 Not included Unlimited 3

(up to 500 min.)

Unlimited 4

(up to 500 min.)

Unlimited 4

(up to 500 min.)

Internet Speed Up to 10 Mbps Up to 5 Mbps Up to 10 Mbps Up to 20 Mbps Up to 40 Mbps 6 Price per month (Ps) $400.00 $333.00 $389.00 $599.00 $999.00

Attr tractiv active te terms

T&Cs that are not being matched by the preponderant

30

Source: izzi telecom, Telmex, IFT.

1.7x 1.8x 2.0x 2.1x 2.2x 2.3x 2.4x 2.5x 2.6x 2.7x 2.7x 1.2x 1.3x 1.4x 1.6x 1.7x 1.8x 1.9x 2.0x 2.2x 2.2x 2.3x 2.6x

0.0x 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q16

RGUs per Household

Top U.S. Cable Televisa Cable 2.0 2.4 2.8 3.3 3.9 4.4 5.1 6.9 9.0 9.5 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q16

RGUs Televisa Cable (million)

Mo More cus custom

• mer

ers and and mor more ser services ices per per cus custom

• mer

er

Net additions accelerating rapidly

• Televisa´s cable companies are on a similar path to its U.S.

counterparts with their 3play offering.

• The two most recent acquisitions are primarily video

customers and the opportunity for conversion to 3play is mostly untapped.

31

(1) (1) Number of unique customers is not reported. Video RGUs has been used as a proxy of unique customers. (2) Figure includes the acquisition of Cablecom in September 2014 and of Telecable in January 2015. (3) Figure includes only Cablevisión, Cablemás and TVI. (4) Televisa IR estimate

Source: with information from Grupo Televisa's public filings.

(3) (2)

• Strong organic growth and strategic acquisitions have

allowed us to expand our cable RGUs at a CAGR of close to 20% since 2007.

(4)

• Televisa has added more data subscribers than the

telecom providers in 7 of the last 10 quarters.

And And bea beating ing the the competition ition

Higher net adds with a smaller footprint

• In 1Q16 for the 9th consecutive quarter Televisa added

more voice RGUs than the telecom providers.

32

Telecom providers refers to Telmex, Axtel, Maxcom and Telefónica. Source: with information from Grupo Televisa's public filings, and the public filings of Axtel, Maxcom, Telefónica and Telmex.

‐50 50 100 150 200 250 300 350 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

Telephony Net Additions

Telecom Providers Televisa Cable ‐50 50 100 150 200 250 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

Data Net Additions

Telecom Providers Televisa Cable

Cape Capex supporting supporting gr growth th

We are where U.S. cable was in 2000‐2002

• In the U.S. during rebuilding phase, network upgrades

accounted for the largest share of capex.

33

The cable companies considered for this analysis include: Time Warner Cable, Cablevision, Charter, Comcast and Cox Communications. Source: with information from Grupo Televisa's public filings.

Rebuild/ Upgrade, 36% CPE Expenditures, 35% Support Expenditures, 14% Scalable Infrastructure , 9% Line Extensions, 6%

US Cable ‐ Capex Composition 2000‐2002

Rebuild/ Upgrade, 8% CPE Expenditures, 53% Support Expenditures, 16% Scalable Infrastructure , 16% Line Extensions, 7%

US Cable ‐ Capex Composition 2012‐2014

• More recently, rebuilding and upgrades among top U.S.

cable companies have accounted for less than 10% on average.

32.2% 32.2% 33.1% 35.0% 37.3% 35.8% 37.7% 40.0% 41.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0%

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 2008 2009 2010 2011 2012 2013 2014 2015 LTM 2Q16

Operating Segment Income (Ps billion)

Televisa Cable OSI Televisa Cable OSI Margin

Tr Trajectory of

• f our
• ur Cable

Cable segm segmen ent

On track for further growth in size and profitability

´05 Cablevision begins to offer DVR and HD services ´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 ´15 Acquisition of 100% of Telecable ’16 Acquisition of the remaining 50% of TVI

Strategic Milestones

• OSI has expanded by almost five times since 2008.
• OSI Margin continues to grow as the business benefits

from economies of scale.

• With two recent acquisitions, there is opportunity for

further margin expansion.

• The acquisition of other cable operators has contributed

to the pace of growth in this segment.

34

Source: with information from Grupo Televisa's public filings.

Overview Content Cable Sky

35

1.6 1.8 2.0 3.0 4.0 5.2 6.0 6.6 7.3 7.8 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q16

Sky Video Customers (million)

7.7 8.4 9.2 10.0 11.2 12.5 14.5 16.1 17.5 19.3 20.8

481 464 457 448 375 295 263 240 230 230 240

5 10 15 20 25 100 200 300 400 500 600 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 LTM 2Q16

Sky ARPU and Revenues

Revenues (Ps. billions) ARPU (Ps.)

• Sky subscribers have expanded at a CAGR of 23.7% since

the launch of VeTV in 2009.

Success Success of

• f lo

low‐co cost st of

• ffering

ring chang changed ed ARPU ARPU pr profile

• file

Changing mix reduced ARPU, but has recently stabilized

36

* ARPU for 2Q16 Source: with information from Grupo Televisa's public filings and Sky.

• Originally, Sky focused on the high‐end segment of the

market with premium pay‐TV offerings.

• For the first time since 2006, ARPUs in Sky are starting to

increase.

*

5,000 10,000 15,000 20,000 25,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Television Broadband Telephony

Manda andated LL LLU co could expand pand the the pot potential ial fo for Sky Sky

Sky plc in the U.K., an interesting case study

Originally a provider of only DTH television services, Sky plc, formerly BSkyB, has offered broadband services since 2007 by renting access to the copper and fiber networks

• f BT

As of 2013, Sky plc had equipment in telephone exchanges covering 88% of the UK’s population The result has been strong growth in broadband subscribers as more and more households sign up for its bundled packages. LLU, or local loop unbundling, propelled Sky plc revenues, with broadband going from representing less than 2% of total revenues in 2007, to over 20% in 2014. Broadband has become the main growth engine for Sky plc, with broadband contributing 86% of total revenues growth in 2012, and 73% in 2013.

• The experience of BSkyB illustrates the potential for Sky

as a result of the mandated local loop unbundling (LLU)

• n the network of the preponderant telecom company.

Source: Company data, Barclays Research

BSkyB RGUs

37

Tr Trajectory of

• f SK

SKY

Contributing with two‐thirds of Televisa´s pay‐TV RGUs

´05 DirecTV subscribers are migrated to Sky ´07 Sky reaches 1.6 million subscribers ´07 Initiates operations in Central America and the Dominican Republic ´09 Sky launches pre‐paid offering VeTV for Ps.169/month ´10 Sky launches satellite IS16 and starts offering HD ´10 Sky adds 1 million subs, reaching 3 mm by YE ´12 Sky reaches 5 million subscribers ´15 Sky launches satellite SKYM‐1

Strategic Milestones

• Sky´s OSI has doubled since 2008, all organically.
• The OSI margin has remained stable, at mid 40s, over

this period of time.

• The launch of the VeTV offer was transformational for

Sky.

• With the recent satellite launch, Sky is capable to offer

additional premium services.

38 Source: with information from Grupo Televisa's public filings

48.2% 44.8% 45.1% 46.4% 45.3% 45.6% 46.9% 46.6% 45.5% 0% 10% 20% 30% 40% 50% 60% 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2008 2009 2010 2011 2012 2013 2014 2015 LTM 2Q16

Operating Segment Income (Ps billion)

Sky OSI Sky OSI margin

Investor Relations Website: www.televisair.com

Eduardo Nestel Investor Relations Director + (52) 55 5261 2438

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

enestel@televisa.com.mx Carlos Madrazo Investor Relations Officer + (52) 55 5261 2446

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

cmadrazov@televisa.com.mx

39