Investor Investor Presentation Presentation First quarter 2019
As of Third Quarter 2019 Disclaimer
This press release contains forward-looking statements regarding the Company’s results and prospects. Actual results could differ materially from these statements. The forward-looking statements in this press release should be read in conjunction with the factors described in “Item 3. Key Information – Forward-Looking Statements” in the Company’s Annual Report on Form 20-F, which, among others, could cause actual results to differ materially from those contained in forward-looking statements made in this press release and in oral statements made by authorized officers of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
2 SNAPSHOT: Our Core Businesses
Share of Consolidated Revenue LTM 3Q19 CONTENT CABLE A leading cable operator in Mexico Advertising Four broadcast channels Video: 4.3 million RGUs * Video in Mexico City and Broadband: 4.7 million RGUs affiliated stations Voice: 3.5 million RGUs throughout the country * Revenue generating units Voz Network Subscription 38% 26 pay-tv networks and 33% 74 feeds in Mexico and CABLE globally CONTENT Licensing & Syndication WiFi SKY Univision royalties, other licensing fees, and exports to over 75 20% CONTENT countries
SKY
SKY A leading DTH system in Mexico and broadband provider, also operating in Central America and the Dominican Republic Video: 7.4 million RGUs Broadband: 319 thousand RGUs
Source: Grupo Televisa's public filings 3 SNAPSHOT: Highlights
o Ps.100 billion in consolidated revenue in LTM 3Q19
o Consolidated Operating Segment Income (“OSI”) of Ps.41 billion in LTM 3Q19
o Investment grade. Average debt maturity over 17.3 years. Net-debt-to-OSI of 2.3x
o Declining Capital Expenditures-to-Sales ratio from 27.6% in 2016 to 18.9% in LTM 3Q19
o 20.2 mm revenue generating units (RGUs) contributing with 65.3% of Consolidated OSI in LTM 3Q19
o Fastest growing broadband provider in the country in terms of new customers
o Content production powerhouse. During the third quarter the top 10 watched programs were produced and transmitted by Televisa
o Two thirds of Televisa’s equity is in the hands of institutional investors, mostly U.S. based
o Publicly traded in the NYSE since 1993 and in the Mexican Stock Exchange since 1991
4 DEFINING TRENDS
I. Highlights 3Q’19
II. Diversified revenue streams
III. Growing operating cash flow
IV. Untapped opportunities in growth markets
V. Strong balance sheet
5 Highlights 3Q’19
Consolidated o Consolidated Sales and Consolidated Operating Segment Income, excluding the non-recurring licensing of certain rights of the World Cup in Latin America in 2018, increased 7.3% and 10.8%, respectively.
Cable o Sales and Operating Segment Income grew 14.7%, both, reaching a margin of 42.4%. o Sales and Operating Segment Income in the MSO business grew 16.8% and 16.1%, respectively, adding 126 thousand RGUs. o Excluding the Axtel acquisition last year, organic top line growth in the MSO business was 9.7%.
Sky o Sky added 19 thousand video RGUs. Broadband RGUs reached 319 thousand after the addition of 81 thousand RGUs. o Revenue and Operating Segment Income were negatively impacted by the difficult year-over-year comparison given the loss of video RGUs following the World Cup.
Content o Our new series “La Usurpadora” delivered the highest ratings during the 9:30 p.m. time slot in our flagship channel, since September 2017. o Content Sales and Operating Segment Income, excluding the non-recurring licensing of certain rights of the World Cup in Latin America in 2018, were relatively flat. o Core private sector advertising revenue was up by 5.1%.
Source: Grupo Televisa's public filings 6 Highlights 3Q’19
Consolidated Revenue Consolidated OSI Non-recurring licensing effect Ps. in billions Ps. in billions
10.8 0.6 1.01.0 25.8 10.0 9.6 9.7 23.7 24.0 9.3 22.8 22.3 8.3 19.8 8.0 18.8 7.5 17.4
3Q'12 3Q'13 3Q'14 3Q'15 3Q'16 3Q'17 3Q'18 3Q'19 3Q'12 3Q'13 3Q'14 3Q'15 3Q'16 3Q'17 3Q'18 3Q'19
Consolidated Sales, excluding non- Consolidated Operating Segment recurring licensing revenue, increased Income, excluding non-recurring licensing 7.3%. revenue, increased 10.8%.
Source: Grupo Televisa's public filings 7 Highlights 3Q’19
o Ps. in billions Cable Revenue Strong top line growth: 15.3% CAGR* from 2013 in LTM 3Q’19 10.6 9.2 o OSI margins have expanded rapidly, reaching 42.9% 8.2 8.3 7.3 in LTM 3Q’19, up from 35.8% in 2013
5.3 o During 3Q’19 total net adds were 126 thousand, 3.9 4.4 year-over-year growth in RGUs was 14.3%
Net Adds ('000) 4Q18 1Q19 2Q19 3Q19 Video 6 -9 11 -42 3Q'12 3Q'13 3Q'14 3Q'15 3Q'16 3Q'17 3Q'18 3Q'19 Broadband 81 89 73 19 Telephony 229 205 202 149 RGU Net Adds 316 285 286 126 Cable O.S.I. Ps. in billions 4.5 o After an important decline in capex, the Cable 3.9 segment is now free cash flow positive 3.4 3.5 3.0 o Over 15.0 million homes passed, of which more than 90% can receive broadband speeds of 100 2.0 Mbps 1.4 1.5
o Our Enterprise business has posted five consecutive quarters of growth, with revenues 3Q'12 3Q'13 3Q'14 3Q'15 3Q'16 3Q'17 3Q'18 3Q'19 expanding at a rate of 5.9% in 3Q’19. *Compound Annual Growth Rate Source: Grupo Televisa's public filings 8 Highlights 3Q’19
o As of 3Q’19, more than 7.7 million RGUs in Mexico Sky Revenue and Central America Ps. in billions 5.5 5.4 5.4 5.3 o 4.9 Second consecutive quarter growing video 4.5 subscribers, adding more than 19 thousand RGUs 4.1 3.7
o Revenue reached Ps.21.4 billion in LTM 3Q´19, contributing with 20.3% of consolidated revenue
o OSI Margins have remained solid for more than 10 years, in spite of strong competition 3Q'12 3Q'13 3Q'14 3Q'15 3Q'16 3Q'17 3Q'18 3Q'19 o In 2018 we launched broadband services under the Blue Telecomm brand. In 3Q’19 we added 80.6 thousand broadband RGUs, reaching a total of 319 Ps. in billions Sky O.S.I. thousand 2.7 2.5 2.6 2.3 2.4 2.1 1.9 1.7
3Q'12 3Q'13 3Q'14 3Q'15 3Q'16 3Q'17 3Q'18 3Q'19 Source: Grupo Televisa's public filings 9 Highlights 3Q’19
Content Revenue o We are the leading producer of Spanish language Ps. in billions content in the world. Non-recurring licensing effect
8.8 8.6 8.7 8.7 o As of 3Q’19, excluding the non-recurring licensing 8.3 8.5 8.0 1.0 8.7 revenue, Content Revenue decreased 0.5% and OSI increased 0.1%.
o Advertising sales decreased by 5.2%. The decline was mostly driven by lower government advertising revenue. Excluding the effect of the 3Q'12 3Q'13 3Q'14 3Q'15 3Q'16 3Q'17 3Q'18 3Q'19 World Cup, core private sector advertising revenue was up by 5.1%. Content O.S.I Ps. in billions o We continue updating our content offering: Non-recurring licensing effect • We are remaking some of Televisa’s most 4.2 4.4 4.0 4.0 iconic dramas with updated formats. 3.6 • We launched the second drama of The Dream 3.1 0.6 3.1 3.1 Factory Project, called Cuna de Lobos. The first one, La Usurpadora, achieved record ratings. • We launched The Masked Singer with great success. 3Q'12 3Q'13 3Q'14 3Q'15 3Q'16 3Q'17 3Q'18 3Q'19
Source: Grupo Televisa's public filings 10 Highlights 3Q’19
o #1 Morning, afternoon and prime time channel in Mexico FTA TV o Most watched shows (Mo-Fri): La Usurpadora, La Rosa de Guadalupe y Sin Miedo a la (Ch.2)Las Verdad 2 Estrellas o #1 Comedy Shows: Vecinos (Mo-Fri) / Una Familia de Diez 2 (Sun) o #1 Magazine show: Cuéntamelo Ya & Hoy
oTelevisa’s Channel 2 and Channel 5 have as much audience as all pay TV channels Kids combined oMost successful animated content vs Free to air and Pay TV Channels
o#1 morning newscasts with Despierta and Al aire con Paola News o#1 night newscast with En punto con Denise Maerker
o8 out of 10 most watched soccer matches in local league Sports oMost watched night soccer show: Contacto Deportivo & Not. Televisa Deportes (Mo-Fri) / La Jugada (Sun)
Movies oSome of the most successful movies in Free to air Television: No se aceptan devoluciones (Las Estrellas), Shrek 2 (Canal 5) y Nosotros los Nobles (Las Estrellas)
oMost watched channel among women: Tlnovelas Televisa o#1 most watched movie network: De Película Networks o#1 most watched comedy channel: Distrito Comedia 11 DEFINING TRENDS
I. Highlights 3Q’19
II. Diversified revenue streams
III. Growing operating cash flow
IV. Untapped opportunities in growth markets
V. Strong balance sheet
12 DIVERSIFIED REVENUE STREAMS
A strong position in our three core businesses
Cable Revenue Sky Revenue Content Revenue Ps. in billions Ps. in billions Ps. in billions
40.2 39.2* 36.2 36.7 34.9 34.3 33.0 34.0 34.5 31.9 28.5 21.9 22.2 22.0 21.4 19.3 20.9 17.5
2014 2015 2016 2017 2018 LTM 2014 2015 2016 2017 2018 LTM 2014 2015 2016 2017 2018 LTM 3Q´19 3Q´19 3Q´19 *Includes the non-recurring licensing revenue
Strong organic growth as a result Leveraging off its customer base Stable level of revenues in the of attractive 3-play offers and a of 7.4 million video RGUs to sell context of a highly competitive focus on customer service broadband services environment
Source: Grupo Televisa's public filings 13 DIVERSIFIED REVENUE STREAMS
Distribution (Cable & Sky) overtook Content in terms of OSI since 2014
Consolidated Revenue Contribution to OSI Ps. in billions OSI Margin
120.0 100.0%
90.0% Others 101.3* 100.2 100.0 96.3 94.3 80.0% 88.1 24%
80.1 70.0% 32% 80.0 34% 37% 38% Cable 60.0% 43%
60.0 50.0% 25% 25% 40.0% 25% 24%
40.0 27% Sky
39.6% 39.6% 39.2% 38.4% 38.3% 38.4% 30.0% 23%
20.0%
20.0
10.0% Content
0.0 0.0% 48% 41% 38% 34% 37% 30% 2014 2015 2016 2017 2018 LTM 3Q´19 2014 2015 2016 2017 2018 LTM *Includes the non-recurring licensing revenue 3Q´19
Our multiple revenue sources have Cable has overtaken Content as the allowed us to post a CAGR of 5.2% most important contributor to since 2013 Consolidated OSI
Source: Grupo Televisa's public filings 14 DIVERSIFIED REVENUE STREAMS: Content
Within Content, the revenue mix has also changed with advertising declining in importance
Content Revenue Mix o Televisa’s content revenue mix Content Revenue has changed over the years Ps. in billions
All Other Content Revenue Worldcup Sublicensing Advertising Revenue o During 3Q’19, advertising Licensing & Syndication revenues represented 55.3% of Network Subscription Advertising Content revenues 27% 27% 29% 1.0 36% 38% 38% 42% 45% 1.5 o Advertising revenues 1.4 1.8 2.2 2.2 2.5 2.6 represented 18.6% of 0.9 2.2 0.8 0.7 Consolidated Revenues in 3Q’19 0.9 1.1 0.9 1.2 1.2
73% 73% 71% o Televisa continues to explore 64% 62% 62% 58% 6.1 6.4 6.0 55% and develop other ways to 5.5 5.4 4.9 5.1 4.8 monetize the content it produces
Source: Grupo Televisa's public filings 15 DIVERSIFIED REVENUE STREAMS: Content
The majority of our Licensing and Syndication revenue originates in the Univision Royalties
o We monetize our content in U.S. Univision Royalties through our licensing agreement USD Millions USD Millions with Univision. 384 Total Revenue Adjusted OIBDA 376 o The royalty rate is 16.45% of substantially all of Univision’s Interest Expense 750 audiovisual revenue. 689 702 666 681 628 325 o A step up in the royalty rate of 612 311 314 Univision came into effect in January and again in July 2018.
o In addition to our stream of royalties, we hold equity and 309 254 266 257 231 229 warrants of Univision which upon 204 their exercise would represent 36%. 97 98 98 98 97 96 95
2015 2016 2017 2018 LTM 3Q´19
Source: Grupo Televisa’s and Univision’s public filings 16 DIVERSIFIED REVENUE STREAMS: Content
We are turning our digital platforms into a new, solid revenue stream
KPI Q3 2018 Q3 2019 % o Grupo Televisa reached 25.6M users in Some of our key Chg. September, up 15% vs. the previous online destinations: Televisa 20.3m 25.6m 26% month. Sites’s www.televisa.com Users* o Las Estrellas, Televisa Networks, and blim Televisa 662m 621m -6% tv all had record months in September in www.lasestrellas.tv Pageviews terms of audience size, as reported by comScore. tudn.com YouTube 2b 3b 61% views o In 3Q19, Televisa continued to lead as the noticieros.televisa.co Facebook 1.3b 2.2b 64% #1 producer of social video views in m views Mexico with more than 5.2 billion views Instagram 41m 85m 37% across YouTube, Facebook and Instagram, views representing an increase of 63% vs. 3Q18.
* Only includes Entertainment, News and Sports content Users: comScore (Desktop 6+ and Total Mobile 15+) Pageviews: comScore (Desktop 6+ and Total Mobile 15+) Youtube, Facebook and Instagram views: Tubular (Televisa total property data) 17 DIVERSIFIED REVENUE STREAMS: Cable
Within cable, broadband and voice account for 65.3% of revenue generating units
Cable RGU Mix o Voice and Broadband are the Cable RGU main sources of growth in millions
Video Voice Data o Many Broadband customers are Voice RGUs upgrading to faster speeds Data RGUs Video RGUs o Growing in high-speed Fiber-to- 37% 35% 45% 43% 41% 3.5 49% the-Home users 3.0
2.1 2.1 o We keep on strengthening our 1.9 25% 28% OTT offer, providing all the 21% 4.5 4.7 21% 22% 1.2 3.8 18% relevant content in one place. 3.1 3.4 2.3
38% 38% 37% 33% 34% 35% 4.2 4.2 4.4 4.3 3.4 4.1
2014 2015 2016 2017 2018 3Q´19 2014 2015 2016 2017 2018 3Q´19
Source: Grupo Televisa's public filings 18 DIVERSIFIED REVENUE STREAMS: Cable
Our izzi go app further positions our cable operation for evolving viewing habits
o The first and only operator in Mexico offering an OTT Bundle to our customers
o We are positioned as an aggregator of the most relevant content available in the market.
o 68 live channels from Mexico and from global content distributors
o Over 40 thousand on-demand assets from Televisa’s Blim, FOX Premium, HBO MAX, and other partners.
o Netflix is included in our izzi TV interface since March
o With izzi Kids, six live TV channels and hundreds of hours on video on demand
o izzi go app is available for all video subscribers since April 2019
19 DEFINING TRENDS
I. Highlights 3Q’19
II. Diversified revenue streams
III. Growing operating cash flow
IV. Untapped opportunities in growth markets
V. Strong balance sheet
20 GROWING OPERATING CASH FLOW
The free cash flow profile of Televisa has improved dramatically
o Expanding operating cash flow Capital Expenditures O.S.I minus Capex Ps. in billions in Cable and Sky has increased our ability to generate strong Ps. in billions Cable free cash flow Sky Content 22.2 21.6 o The contribution to consolidated 20.7 OSI, net of capital expenditures, has almost doubled since 2016 15.3 17.6 16.2 o During the first three quarters of 10.2 11.0 9.2 12.3 14.0 2019, we invested U.S.$535.1 10.1 million in Cable Capex, which represents 82.3% of the
6.2 U.S.$650.0 million we gave as 5.1 5.4 3.8 3.9 3.8 guidance for full year 2019. 2.4 2.5 2.9 2.1 1.7 1.2
2014 2015 2016 2017 2018 LTM 2014 2015 2016 2017 2018 LTM 3Q´19 3Q´19
Source: Grupo Televisa's public filings 21 GROWING OPERATING CASH FLOW: Cable
We are entering the harvesting phase after heavy investments in infrastructure Cable net adds RGUs in millions 1.6 o During 2015 and 2016, Televisa accelerated its 1.5 1.2 capital investments in its Cable segment 0.7 0.7 0.6 0.6 0.5 0.5 o It embarked on a heavy-capex phase to upgrade 0.4 0.4 its network and support growth in RGUs
o Cable capex reached Ps.17.6 billion in 2016 making Televisa one of the most important investors in Mexico’s telecom infrastructure that It includes RGUs acquired from Axtel year
o As a percentage of revenues, Cable capex came Cable OSI net of CAPEX Ps. in billions down from 55% in 2016 to 35% in LTM 3Q19 3.9 3.0 3.3
2011 2012 2013 2014 2015 2016 2017 2018 LTM -0.4 -0.2 -1.5 -1.4 3Q´19
-4.3 -4.8
Source: Grupo Televisa's public filings 22 GROWING OPERATING CASH FLOW: Sky
Cash flow increased substantially after Sky net adds 2016 due to lower capital needs RGUs in millions 1.1 1.1 1.0 0.9 o In 2010, Sky launched VeTV, a pre-paid basic pay 0.7 0.6 0.6 TV package and launched an aggressive campaign to add new subscribers
0.2 0.0 -0.3 -0.1 o Its net adds reached a peak in 2012 installing over 40,000 new services every week, on average
o In 2016, growth further accelerated with the shut- down of the FTA analog signals
Sky OSI net of CAPEX o Majority of LTM subscriber losses are attributed Ps. in billions 6.3 to the post-World Cup effect. In 2Q 2019 Sky 5.9 5.4 resumed growth in video subscribers.
3.5 3.7 3.1 o In 2018 Sky launched broadband services through 2.7 2.3 the brand Blue Telecomm, reaching 319 thousand 2.8 RGUs in 3Q 2019
Source: Grupo Televisa's public filings 23 DEFINING TRENDS
I. Highlights 3Q’19
II. Diversified revenue streams
III. Growing operating cash flow
IV. Untapped opportunities in growth markets
V. Strong balance sheet
24 UNTAPPED OPPORTUNITIES: Broadband Market
Composition of Broadband Subs in Broadband Net Adds Mexico Thousand RGUs 3.1% 249 Incumbent 20.1% DSL Televisa Cable Coaxial 38.8%
Fiber 110 36 Other 311 62 157 173 38 38.0% 136 4 62 89 73 19 -8 -12 4Q'17 1Q'18 2Q'18 3Q´18 4Q´18 1Q´19 2Q´19 3Q´19
o According to the Mexican regulator, as of the end o Over the last eight quarters our Cable Segment of the fourth quarter 2018, 7.2 million customers has added more than twice the number of were still on copper (DSL: Digital Subscriber Line) Broadband RGUs added by the incumbent
o This is a fertile pool for Cable as it takes advantage of its superior coaxial and fiber infrastructure
Source: Internal analysis based on IFT and other companies ’ public information 25 UNTAPPED OPPORTUNITIES: Broadband Market
Televisa Cable Market Share - Telecom Market Share Bradband services AMX 24.1% 24.5% 6.4% 22.2% 7.3% Telefónica 20.8% 21.3% 4.7% AT&T 16.4% 3.8% Megacable 13.1% Sky
12.3% 59.4% Televisa Cable Otros 6.1%
2013 2014 2015 2016 2017 2018 3Q´19 As of 2Q19
o Our cable operation, izzi, has been gaining o In spite of Televisa’s strong growth in the market share for more than 6 years telecom market, it is still a small participant in the industry
Source: Internal analysis based on IFT and other companies’ public information 26 UNTAPPED OPPORTUNITIES: Broadband Market
Fixed broadband penetration % per 100 inhabitants 50.0 subscribers per 100 inhabitants 40.0
30.0
20.0
10.0
0.0
Italy
Chile
Israel
Japan
Korea
Latvia
Spain
France
Turkey
Poland
Ireland
Austria
Greece
Iceland
Finland
Estonia
Canada
Norway
Mexico
Sweden
Belgium
Slovenia
Hungary
Portugal
Australia
Denmark
Germany
Lithuania
Colombia
Switzerland
Netherlands
Luxembourg
NewZealand
UnitedStates
CzechRepublic
SlovakRepublic UnitedKingdom
o Mexico’s broadband market is just developing. Broadband customers in Mexico still have among the lowest speeds in the OECD.
o Mexico has the second lowest penetration of broadband services of all OECD countries, and the lowest speed.
o We are positioned like to no other operator in Mexico to benefit from increased demand for broadband.
Source: OECD, Broadband Portal (December 2018) 27 UNTAPPED OPPORTUNITIES: Broadband Market
There are 33mm homes in the country
of which more than 15mm homes are passed by Televisa Cable
Of those, more than 90% are capable of getting 100Mbps from Televisa Cable
but only 4.6mm homes are currently customers of our broadband offering
There is plenty of room for further growth among the existing homes passed
In the large majority of the markets we reach, Televisa is the provider capable of delivering the fastest speeds
Source: Internal analysis based on IFT and other companies’ public information 28 DEFINING TRENDS
I. Highlights 3Q’19
II. Diversified revenue streams
III. Growing operating cash flow
IV. Untapped opportunities in growth markets
V. Strong balance sheet
29 STRONG BALANCE SHEET
Limited FX exposure, comfortable debt profile, long maturities
An operating hedge: • dollar-denominated revenue US$933 million (2018) • dollar-denominated costs and expenses US$750 million (2018)
A balance sheet hedge: o US$4.4b in total debt o US$3.5b in total assets
We have a very comfortable debt profile with very long maturities (data as of 3Q19)
• Net debt to OSI ratio: around 2.3x as of 3Q19 (LTM OSI) • Closest relevant maturities: US$600 million in 2025 • Weighted average maturity: USD is 20.8 years, MXN is 9.2 years • 67% of debt in USD, 33% of debt in MXN. Average interest rates: in USD 5.92%, in MXN 8.04% • US$263 million in interest expense (2020), most of which is hedged
In October, Televisa concluded the prepayment of the total outstanding amount of MXN$10,000 million and of the Company’s local bonds TLEVISA 10.
Source: Grupo Televisa's public filings. 30 OTHER RELEVANT INFORMATION
31 SUSTAINABILITY: Many recent milestones
o One of the only three Mexican companies included in the 2019 Dow Jones Sustainability Emerging Markets Index.
o Member of the 2019 Dow Jones Sustainability MILA Pacific Alliance Index.
o Included as a constituent of the 2019 FTSE4Good Emerging Index.
o Part of the United Nations (UN) Global Compact, the world’s largest corporate sustainability initiative.
o Televisa has submitted our Report for Climate Change and Water through CDP (formerly the Carbon Disclosure Project).
o Member of the IPC Sustentable (Sustainability Index), of the Bolsa Mexicana de Valores (Mexican Stock Exchange).
o Televisa’s social responsibility programs were recognized for the second time with the “Empresa Socialmente Responsable” award.
o Included in the 2019 Bloomberg Gender-Equality Index.
o Our facilities Santa Fe, San Ángel and Collection Center received the Environmental Quality Certificate issued by federal environmental entities.
o Televisa was recertified with the new version of the norm ISO 14001:2015 in three of our facilities: Santa Fe, San Ángel and Collection Center.
Source: Grupo Televisa's public filings 32 Investor Relations www.televisair.com
+ (52) 55 5261 2438 Av. Vasco de Quiroga 2000, A4. Col. Santa Fe CP. 01210 Mexico City
Carlos Madrazo VP, Head of Investor Relations [email protected]
Santiago Casado Investor Relations Director [email protected]
Pablo Necoechea Sustainability and Analysis Coordinator [email protected]
Ana Paola Montiel Investor Relations Analyst 33 [email protected]