This Is the Right Time for Televisa. Our Core Businesses —Content and Distribution— Are As Compelling and Competitive As Ever

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This is the right time for Televisa. Our core businesses —content and distribution— are as compelling and competitive as ever. We are in the right place. Mexico, our main market, is a healthy and dynamic economy that is poised to continue growing at a solid pace. And we are executing on the right business model. In the past three years Televisa made significant strategic investments in Univision and Iusacell and every day we build further on their potential to be important value drivers for Televisa.

1 content: Contribution to Sales: 47% Contribution to OSI(1): 54% content: licensing & syndication Exports its programs and formats to television networks around the world. In the U.S., distributes its content: content through Univision under a Programming License Agreement (PLA). The PLA, which was ex- advertising tended to at least 2025, resulted in royalties to Tele- visa of US$248 million in 2012. The world’s largest media company in the Spanish-speaking world based on its market capitalization and a major participant Over 50 countries worldwide in the international entertainment busi- (approximate reach) ness, Televisa operates four broadcast networks —2, 4, 5, and 9— in Mexico through Contribution to Sales: 8% 258 affiliated stations throughout the country, and sells advertising on its pay- TV channels and Internet assets. It also produced more than 69 thousand hours of content in 2012 for free-to-air television.

Contribution to Sales: 34% Tele visa at a glance content: network subscription publishing The leading Spanish-language magazine Produces and distributes 22 pay-TV brands. publisher; produced 186 titles with a cir- In the U.S., distributes its pay-TV channels culation of approximately 129 million through Univision. Produced approximately 20 magazines in 2012. Also, continued to ex- thousand hours of content in 2012 for pay-TV pand the reach of its titles through digital networks. platforms: • Cosmopolitan • Men’s Health • National Geographic • Seventeen +33 million pay-TV subscribers 20 countries reached Contribution to Sales: 5% Contribution to Sales: 5% Contribution to OSI(1): 2%

2 SKY unconsolidated Mexico’s leading direct-to-home satellite businesses television system; also operates in Central America and the Dominican Republic. De- Iusacell (50%). Mexico’s third largest mobile telecom provider. mographic expansion through new packag- Expanded its number of users by 37 percent during 2012. es: MiSky and VeTV; more than one million subscribers added in 2012. Univision (8%). The leading Spanish-language media company in the U.S., and the number four network regardless of language. Subscriber base: 5.2 million Ocesa Entretenimiento (40%). Live-entertainment company in Mexico. Organized nearly 4,500 events in Mexico in 2012. Most Contribution to Sales: 20% successful show: Michael Jackson The Immortal World Tour by Contribution to OSI(1): 23% Cirque du Soleil.

Imagina (14.5%). Spanish media group whose main activities include the commercialization of sports rights including the Spanish Soccer League La Liga, production of television content and movies, digital production and post-production services, transmission of content via satellite and techni- cal and advisory services.

other businesses Gaming. Bingo parlors and online lottery business. Tele visa Soccer teams. Two of Mexico’s professional soccer teams. Azteca stadium. Mexico’s largest stadium. Radio. Network of 91 owned and affiliated radio stations.

at a glance Contribution to Sales: 6% Contribution to OSI(1): 1% cable & telecom Cablevisión, Cablemás, and TVI offer video, voice, and broadband services in Mexico City, Monterrey, and several cities in Mexico. Telecom company Bestel provides broadband and long-distance services in Mexico and the United States.

Cablevisión Cablemás TVI Video 787,054 1,147,007 374,733 Broadband 509,137 567,247 229,720 Voice 318,927 302,197 133,178 Total RGUs 1,615,118 2,016,451 737,631 Contribution to Sales: 22% Contribution to OSI(1): 20%

(1) Operating segment income (OSI) is defined as operating income before corporate expenses, depreciation and amortization, and other expense, net. For a reconciliation of total operating segment income with consolidated operating income, see Note 25 to our year-end consoli- 3 dated financial statements. dear fellow shareholders:

During 2012, Televisa continued growing both its revenues and operating segment income at a solid pace. Consolidated net sales grew by 10.7 percent to 69 billion pesos and operating segment income grew by 12 percent to 28 billion pesos.

Our content business was as successful as ever ico, notwithstanding very strong competition to During the year we produced more than 90 thou- attract audiences. The large majority of global sand hours of content in four different languages media and entertainment companies make their and competed with our content in over 50 coun- pay-TV networks available in Mexico, offering tries around the globe. Sales increased 7.2 percent content to over 40 percent of Mexican house- reaching 32.9 billion pesos, with an operating seg- holds. It makes me proud that our own produc- ment income margin of 46.9 percent. tions compete so successfully with those of such renowned companies. We continued breaking our own audience records by producing successful telenovelas, newscasts Internationally, we continued to expand the num- and general entertainment shows. Moreover, our ber of countries where our content is transmitted. coverage of special events, such as the Summer Our pay-TV networks division reached a more Olympic Games and the Pope’s visit to Mexico, de- than 33 million subscribers, of which two thirds livered larger audiences than those of our com- are outside of Mexico. petitors, even though we were broadcasting the same content. In the United States, through Univision, our content continued conquering new audiences. Our pay-TV networks remained among the most- During 2012, Univision Network increased its watched networks on pay-TV platforms in Mex- ranking among the major American networks,

4 We continue to work closely with Univision to help them make the most effective use of our content, and to produce content that is increasingly relevant to the Hispanic market

becoming the fourth most watched network Sky repositioned itself from a platform focused ex- during prime time among adults between 18-34 clusively on a high-end customer base into a pro- regardless of language. Our content continues to vider of pay-TV content available to all segments of have growing success in the most competitive the population. Since then, Sky has added approxi- market in the world. mately one million subscribers every year. Most notably, this growth has been achieved in spite of We continue to work closely with Univision to intense competition in the pay-TV industry. help them make the most effective use of our content, and to produce content that is increasingly Our cable companies continued to deliver strong relevant to the Hispanic market. Our interests are growth perfectly aligned. We both want Univision to grow Revenues for the cable and telecommunications as fast as possible, while setting the foundation division grew by 14.2 percent to 15.6 billion pesos for its continued success. This way, we benefit not and operating segment income margin reached only from a growing stream of royalties, but also 37.3 percent. A large portion of this growth was as an equity investor in a company that continues driven by the increasing adoption of voice and consolidating its position as the leader in the His- broadband services by our video customers. panic market. At the same time, video subscribers grew at a healthy pace. In our publishing division, sales increased 8.2 percent during 2012. In spite of the many chal- Our cable operations closed the year with 2.3 mil- lenges that this industry is facing globally, oper- lion video subscribers, 754 thousand voice sub- ating segment income margin reached 13 percent scribers and 1.3 million broadband subscribers. for the year. As of the end of 2012, on average, 33 percent of our cable video customers also subscribed to our Sky, our satellite pay-TV platform, reached over voice service, and 57 percent to our broadband 5 million subscribers in 2012 service. Going forward, there is a big opportunity Revenues increased 15.9 percent to 14.5 billion to keep expanding our base of voice and broad- pesos and operating segment income margin con- band customers. tinued to be remarkably strong, reaching 45.3 percent for the year.

5 The pay-TV industry in Mexico presents great In 2012 we received regulatory approval from opportunities Mexico’s Antitrust Authority to become an equity Pay-TV penetration in Mexico today is increasing holder in Iusacell. This mobile operator has been at a fast pace, and it remains a market with great undergoing a transformation from the moment potential. Broadband penetration is very low by in- we made the US$1.6 billion investment back in ternational standards, but there is strong demand 2011 and we are excited about the initial results. for high quality, high-speed broadband services. Iusacell closed the year with 7.4 million subscribers, a year-over-year growth of 37 percent. In addition, the majority of our current customers subscribe to our basic services at low prices. We are commencing 2013 from a position of This means that as purchasing power in Mexico strength grows, so will our customers’ desire for higher From 2009 through 2011 we had to overcome many broadband speeds, exclusive programming, high- challenges, including the global financial crisis, definition content, and other premium services the deepest economic contraction in Mexico’s re- that we offer. cent history, the entry of a new pay-TV competitor, and the loss of an important advertising customer. Our pay-TV platforms are very well positioned to Today, we are not only stronger, but we have taken benefit from the opportunities originating from the steps necessary to benefit from a favorable this industry, while at the same time contribut- macroeconomic environment. ing to the growth of Mexico’s telecommunications infrastructure and the expansion of service Today, Mexico finds itself in an enviable situation. offerings. We have already started to make our It has a large and well‐diversified economy, driven mark. Over the past several years Televisa has by a young labor force, a growing middle class, been an important force and a significant con- sound public finances, low inflation and a strong tributor to the dynamism of the Mexican tele- financial system. In spite of a weak global macro com industry. Since 2008, we have invested close environment, Mexico’s GDP grew at a solid pace to US$3 billion in our Cable and Telecom busi- during 2012, foreign investment increased, do- nesses, in addition to our 2011 investment in the mestic demand expanded, and private consump- mobile telephony market. tion maintained its momentum.

6 Outside Mexico, the most important market for bution of more and better content through more Televisa is the Hispanic market in the United platforms in more markets, to further expanding States. Hispanics are already the largest minor- our video, voice and broadband customer base. ity in the country. This segment of the popula- Moreover, we will continue to work closely with tion is expected to contribute close to two thirds Univision to enhance the long-term value of the of all population growth over the next five years, company, and with Iusacell to expand its market reaching close to 19 percent of the country’s to- share in a profitable and sustainable manner. tal population by 2020. The buying power of this demographic is even more relevant. Today, at over Finally, I want to express my gratitude to our board US$1 trillion, Hispanic spending power is larger of directors, management, and employees for their than that of the population of Mexico or Canada. continued dedication and to our customers and Through our partnership with Univision, we have audiences for their patronage. I appreciate the a unique platform to reach this demographic, trust that our shareholders continue to place in whose importance grows every day. Grupo Televisa. I look to the future with optimism and invite you to join us on this journey. I am happy to report that 2012 was also a year of great achievements for Fundación Televisa. We kept our focus on improving access to education, increasing health and nutrition standards, and promoting environmental sustainability. In collaboration with our partners, we increased our scholarship program by 22 percent, providing support to more than 163 thousand students and promoting values in 120 thousand schools. Fundación has improved the lives of over 49 thousand individuals and their families by promoting health, nutrition and housing initiatives across Mexico. Emilio Azcárraga Jean We have set for ourselves some very aggressive Chairman of the Board and goals for 2013: from the production and distri- Chief Executive Officer

7 financial highlights

In millions of Mexican pesos, except per CPO amounts and shares outstanding.

2012 2011 Var.% Consolidated net sales Ps. 69,290 Ps. 62,582 10.7

Operating segment income (1) 28,414 25,371 12.0

Segment margin 40.3% 39.8%

Operating income 18,140 16,274 11.5

Margin 26.2% 26.0%

Controlling interest net income 8,761 6,666 31.4

Earnings per CPO 3.08 2.37

Shares outstanding at year-end (in millions) 333,898 330,862

Cash and cash equivalents at year-end Ps. 19,064 Ps. 16,276 17.1

Temporary investments at year-end 5,317 5,422 (1.9)

Long-term investments at year-end 3,375 3,356 0.6

Total debt at year-end 52,991 55,965 (5.3)

Net debt position at year-end 25,235 30,911 (18.4)

(1) Operating segment income (OSI) is defined as operating income before corporate expenses, depreciation and amortization, and other expense, net. For a reconciliation of total operating segment income with consolidated operating income, see Note 25 to our year-end consolidated financial statements.

8 Operating Segment Income Income Segment Operating by Segment by Breakdown Revenue cable and and cable telecom 20% 20% SKY businesses 23% SKY other 6% cable and and cable publishing telecom 22% 2% publishing 5% businesses other 1% Syndication and Licensing Subscription Network Advertising content content 54% (1)

47%

34% 8% 5% Segment netsales millions ofpesos millions ofpesos 11 12 11 12 25,371 63,817

28,414 70,584 9 10 Such co-productions have consolidat - work well in otherpartsoftheworld. telenovela. This formathasproven to sodes basedonasuccessfulMexican elodeon 80daily English-language epi- 2012, Televisa co-produced withNick- Mandarin, Portuguese andFrench. In now producing contentinEnglish, companies allover theworld. We are tive partnerfor content-producing pealing stories, Televisa isanattrac- its borders. Byofferinguniversally ap- content market, Televisa isexpanding the leadersinSpanish-speaking ence producing telenovelas asoneof With more than50years ofexperi- ers from around theworld. ances withsuccessfulcontentproduc- Televisa hasalsoforged importantalli- most effective stories. To achieve this, content withthebesttalentand Televisa’s goalistoproduce thebest thousand hoursofcontent. sult, in2012 we produced more than90 ment ofin-houseproductions. As are- of which was allocatedtothedevelop- sos inprogramming, alarge majority In 2012, we invested over 13billionpe- business content our

millions ofpesos Net Sales 11 12 OSIMargin

47 30,686

47 32,884 ed Televisa’s presence in the largest nities, helping them reach their target global markets, such as the United audiences more effectivetly. States, China, and Brazil. The success of our in-house pro- Televisa also continues to focus on gramming drives our three sources developing its digital offerings. 2012 of content revenue: advertising, net- saw the launch of a new strategy that work subscription, and licensing and capitalizes on the proliferation of mo- syndication. We will continue to pro- bile devices, gaming consoles, and duce and access high-quality pro- other digital platforms. This strategy gramming that both audiences and will allow us to offer our customers advertisers demand. new multimedia advertising opportu-

11 content: advertising

In 2012, advertising represented 72.8 percent of Televisa’s content revenues, and less than 34 percent of consolidated revenue. Our main sources of advertising revenue are our four broadcast networks —2, 4, 5 and 9— which Televisa operates through an affiliate network of 258 stations throughout Mexico. We also sell advertising in our pay-TV networks, which contributed 4.6 percent of advertising revenue in 2012 and grew 23.6 percent.

Televisa’s over the air networks continue to broadcast high quality and relevant content; as a result these networks maintain a large share of the free-to-air TV audience.

12 In 2012, we were very successful with the transmission of special events. In August, we transmitted the Olym- the time is right pic Games and beat our competition with our commentary programming, • Ongoing success of the telenovela format despite transmitting the same content. This proves that while owner- • Resilient and diversified advertising customer base ship of content rights is important, • Rapidly expanding advertising revenues in pay-TV Televisa’s creativity and production networks values around special programming • New media platforms create new advertising oppor- make the difference. tunities

• Strategic alliances with some of the best content producers worldwide

• 50+ years experience producing content and expanding advertising opportunities

13 content: network subscription revenue

Through our 22 pay-TV brands and 41 national and international feeds, we reached in 2012 more than 33 million subscribers worlwide. During 2012, Televisa produced approximately 20 thousand hours of content for its pay- TV networks.

The average number of networks per subscriber increased 7.3 percent, from 5.5 in 2011 to 5.9 in 2012.

In 2012 Televisa added close to 4 million new subscribers, generating 23.1 percent growth in subscription revenue.

14 the time is right

• A well diversified portfolio of pay-TV networks

• Pay-TV penetration expanding rapidly

• Growing popularity of Televisa’s pay-TV networks

• Rapidly increasing number of subscribers around the world

• Increasing success despite strong competition from foreign content producers

In Mexico, where demand for pay- works, three of the top four movie TV continues to grow rapidly, we are networks, and the top three music increasing production to expand our and lifestyle networks. demographic appeal while providing advertisers greater access to increas- The growth in pay-TV penetration in ingly well-defined audiences. For ex- Mexico is likely to continue at a fast ample, in 2012, we launched UTDN, pace. That expansion, together with our second sports network, dedicat- the growing popularity of our pay- ed to reaching a growing number of TV networks internationally, will re- sports fans. UTDN complements our main an important growth driver for portfolio of networks, which has be- this business. come the vehicle of choice for advertisers that want to reach a specific demographic in selected markets.

Our pay-TV networks remained among the most watched networks on pay-TV platforms in Mexico. We closed the year with five of the top seven general entertainment net-

15 content: licensing and syndication

Our content reaches millions of people across the world. In 2012 we exported close to 93 thousand hours of our origi- nal programming to over 50 countries.

Our international sales increased 30 percent in 2012, with Latin America as the greatest contributor to growth, fol- lowed by Asia. In addition, through our agreement with Univision, we continue to access the fast-growing Hispanic market in the United States.

16 the time is right

• Growing success of Televisa’s content in the U.S.

• Expanding and more influential Hispanic population

• Growing appeal of Televisa’s formats internationally

• Produced content in four different languages in 2012

• Successful co-productions in different markets around the world

The United States remains Tele- There has never been a better time visa’s number one market outside to be in the content business Mexico, and our Licensing and Syn- dication business has been significantly strengthened by our Program There has never been more Span- License Agreement (PLA) with Univi- ish-language audiovisual content sion. Royalties we receive today are available, and our content has nev- almost double those we received six er been as successful as it is today. years ago. In 2012, Televisa received Our strategic actions have expanded US$248 million from this agreement, the reach of our content in tradi- a 10 percent increase from the pre- tional and emerging platforms. We vious year. will continue to explore new ways to bring our content to audiences all The PLA provides Televisa with a roy- over the world. alty base of nearly 12 percent of all audiovisual revenue generated by Univision. As part of our agreement with Univision, the PLA takes into ac- count an increase in the royalty base, beginning in 2018, to more than 16 percent of all audiovisual revenue. Televisa will continue to work with Univision to ensure our content is appealing to the Hispanic market in the U.S.

17 cable & telecom

With a network of over 52 thou- work to fiber to the curve technology, sand miles of fiber and coaxial cable successfully launched telecommuni- throughout the country, including 37 cation services for small and medi- thousand from its cable companies, um sized companies, and forged new Televisa’s Cable and Telecom busi- ground with its offering of innovative ness provides video, broadband, and single, double and triple play pack- voice services to millions of people ages. As a result, in 2012 Cablevisión throughout Mexico. reached a significant milestone with more broadband and telephony rev- Through three subsidiaries —Ca- enue generating units than video blevisión, Cablemás, and TVI— by year subscribers. end 2012 this business reached an aggregate of more than 2.3 million Cablemás is now the second-largest video subscribers, 1.3 million broad- cable operator in Mexico as mea- band subscribers, and nearly 754 sured by subscriber base. Cablemás thousand voice subscribers. Even experienced a very solid 2012 driven more remarkably, this was achieved by growth in pay-TV and broadband in spite of intense competition in all services. Cablemás has become a re- three services. liable provider of broadband services by delivering better service, faster Cablevisión, a fully digital provid- speeds, and attractive pricing. As a re- er of high-quality video, voice and sult, broadband subscribers reached broadband services, is a technologi- 49 percent of total video subscribers cally advanced digital cable service in 2012. By year-end, Cablemás had provider in Mexico City. In 2012, Ca- converted 58 percent of its subscrib- blevisión finished upgrading its net- ers from analog to digital, and by the

18 the time is right

• Low pay-TV penetration

• Increasing adoption of double and triple play packages

• Rapidly expanding market share in voice and broadband

• Opportunity for value-added services

• State of the art technology

• Economies of scale not yet fully exploited

end of 2013, nearly all of Cablemás’ formance improved significantly due subscribers will receive a digital sig- to a larger customer base, as well as nal. This digitization process will a higher contribution of value added allow Cablemás to offer additional services in the revenue mix. In 2012, Video On Demand services, as well the value of Bestel’s signed contracts as the latest technology to its more was double that of 2011. than 1.1 million video subscribers. In 2013, our cable and telecom op- TVI is the leading provider of triple- erations will seek to continue to con- play and pay-TV services in northeast vert video subscribers over to double Mexico, and has focused its growth and triple-play packages, expand on digital and broadband subscribers their SME services, grow the high- in a highly competitive market. The end customer base through premi- northern region of Mexico has higher um services such as high definition purchasing power and exposure to content, and enhance their Video On the United States than other parts of Demand offerings. At the same time, Mexico, which partially explains and Bestel will continue to consolidate

15,570 drives the demand for broadband ser- its position as a leader in the whole- vices and increases the potential for sale and corporate telecommunica- 13,635 growth in sales and value-added ser- tions business. vices. The penetration of broadband subscribers as a percentage of video subscribers reached 61.3 percent at 37 the end of 2012. 35 Bestel provides long-distance, local telephony, broadband and network- ing, internet access, managed and security services in Mexico primarily to business customers. Bestel’s major 11 12 customers are cable and mobile op- Net Sales erators, government entities, and me- millions of pesos dium and large enterprises. 2012 was OSI Margin an outstanding year for Bestel; its per-

19 In 2012, our direct-to-home (DTH) satellite television business, continued to grow at an accelerated pace. sky With an extensive channel offering and the largest selection of exclusive 14,465 content, Sky continues to be Tele- 12,479 visa’s second largest operating segment income contributor.

Launched in 1996 in Mexico, Sky initially grew its subscriber base through a combination of premium 46 45 offerings aimed at high-end and middle-market segments. In late 2007, Sky expanded into Central America and the Dominican Repub- lic. At the end of 2012, its subscriber base in this region totaled more than 11 12 182 thousand customers. Net Sales millions of pesos OSI Margin

20 the time is right

• Low pay-TV penetration

• Rapidly growing customer base

• Pay-TV offerings for every segment of the population

• Opportunity for value-added services

• Exclusive sports content

• Premium pay-TV packages

In 2009, Sky began adding value-add- more than 45 channels and exclusive ed services and lower-priced packages, content that includes popular sports including MiSky and VeTV, designed to events and special programs. attract new market segments. Since the launch of these offerings in 2009, In December 2012, Sky launched Sky Sky has more than doubled its total Access, a new product aimed at more subscriber base, reaching more than sophisticated viewers that want a five million subscribers while main- reasonably priced, high quality pay- taining strong profitability. TV service. To continue to grow its subscriber base and compete effec- In 2012, Sky’s total subscriber base tively, Sky continues to innovate. In grew by more than one million, an June, Sky launched Blue to Go, an in- increase of approximately 28 percent ternet service for customers in the from 2011. Sky’s broad-market strat- Mexico City area. egy has generated subscriber growth at a compounded annual rate of 22 Sky will continue to focus its efforts percent over the past 10 years. on bringing new services; offering relevant, entertaining, and exclu- Sky’s subscribers can watch soc- sive content at attractive prices; and cer matches held both in Mexico and providing the best possible custom- around the world, including major er service. tournaments and exclusive content, such as most games of La Liga and Copa del Rey in Spain and The Premier League in England. Sky also delivers a wide range of exclusive U.S. sports programming including NFL Sunday Ticket, MLB Extra Innings, NBA Pass, and exclusive coverage of several WTA and ATP tennis tournaments.

Sky has one of the most complete HD offerings in the DTH market, with

21 publishing

From health, beauty, fashion and ce- lebrity to technology, travel, sports and science, our magazines cover a wide array of popular topics and ad- dress a variety of consumer interests. Televisa publishes 186 magazine titles in 20 countries around the world.

In 2012, Televisa’s Publishing segment expanded revenues by 8.2 percent in an industry that has been 3,453 affected by structural changes, including shifts in reading habits and growing competition from emerging media platforms. We have continued 3,192 to streamline the operations of this business segment and continuously seek new ways to extract maximum 14 13 value. We have launched new web- sites for our publications including, TVyNovelas, Esquire, Vanidades, Furia Musical, National Geographic, Men’s Health, Harper’s Bazaar, Padres e Hi- jos, Cosmopolitan and Seventeen. The 11 12 TVyNovelas website is today the most visited digital publication in Mexico. Net Sales millions of pesos OSI Margin

22 Looking to capitalize on the success With a wide range of titles and con- of Televisa’s made-for-TV content, tent, our Publishing business contin- Publishing launched publications ues to offer a high value and high- that complement this content and ly targeted medium to advertisers. engage the audience at a deeper lev- We will continue to seek innovative el. For example, in 2012 we launched methods to realize the full value of the Miss XV magazine with content our publishing brands. related to the Miss XV telenovela.

2012 also saw the introduction of Su- perman to Editorial Televisa, after we the time is right added DC Comics to our portfolio of titles. We now publish and distribute • Largest selection of Spanish-language magazines the largest selection of comics in the region. • Extending leading publishing brands to online presence

Finally, in 2012 we concluded the • Capitalizing on the success of Televisa’s made-for- construction of Televisa’s Digital Ar- TV content chive Media (DAM), which allows us • New opportunities to monetize digital archive to share content and stories among all of our publications, while creating efficiencies and reducing costs. In the near future, we expect to make Tele- visa’s DAM available to the public.

23 24 businesses other a totalof4.3millionannual visitors. Gaming Machines (EGMs)persiteand with anaverage of296Electronic Our bingobusinessincludes18sites erate, butsteady pace. eration continued to grow at a mod- environment,lenging ourgaming op- to grow inMexico. Despiteachal- bingo andcasinogamingcontinues The entertainment value of lottery, Gaming enue base. for furtherdiversification ofits rev- Televisa withrelevant opportunities businesses whileotherspresent important complement to our core Some ofthese operations are an ing distributionbusinesses. ture-film distribution, andpublish- cludes our gaming, radio, soccer, fea - Our Other Businesses segment in- millions ofpesos Net Sales 11 12 OSIMargin 3,825

4 4,211 other

In 2012 bingo revenues continued to Radio grow as a result of changes made to A leader in Spanish-language radio, our product offering, and in particu- Televisa broadcasts news, music, and businesses lar, to the introduction of Class III talk programming through a network EGMs. In addition, we placed strong of 91 radio stations. Of these stations, emphasis on improving on-site cus- 17 are owned and 74 are affiliates. tomer service, which enhances the gaming experience and sets us apart Our content includes popular shows from our competitors. based on the top 40 English- and Spanish-language pop music hits (40 Our lottery business relies on approxi- Principales), popular Mexican music mately 4,000 lottery terminals located (Ke Buena), political and economic across the country. Lottery business news and commentary (W Radio), and revenue grew in 2012 as a result of Ga- other programming that addresses a nagol, our flagship lottery product in- broad variety of topics. troduced in January 2010. In all, Televisa’s radio entertain- In March 2012, we signed an agreement and information is broadcast ment with Oxxo – the leading chain of to more than 74 percent of Mexico’s convenience stores in Mexico with over population. Our radio broadcasts, 10,000 locations across the country – to under certain conditions, reach some implement on-line and instant ticket- markets in the southwestern United ing sales in its stores. This agreement States, and four of our most popu- will allow us to offer our lottery games lar stations—40 Principales, Ke Buena, to more players, and continue growing W Radio, and Bésame—also transmit in a profitable manner. over the internet.

25 Univision

On December 20, 2010, Univision (UCI), terest in BMP from 5 percent to 7.1 Televisa, BMP, the parent company of percent. In August 2012, we made an UCI, and other parties affiliated with additional investment of US$22.5 mil- the investor groups that own UCI’s lion in cash in common stock of BMP, parent company, entered into various by which we increased our interest in agreements and completed certain BMP from 7.1 percent to 8.0 percent. As transactions previously announced in of year end 2012, Televisa’s direct eq- October 2010. As a result, in December uity stake of UCI reached 8 percent. 2010, we i) made a cash investment of US$1,255 million in BMP, in exchange As part of the 2010 investment agree- for an initial 5 percent equity stake in ment, the Programming License BMP, and US$1,125 million aggregate Agreement (PLA) between Televisa and principal amount of 1.5 percent Con- Univision was amended, expanding vertible Debentures of BMP due in 2025 Univision’s exclusive rights to Televisa which are convertible at our option programming in the U.S., and extending into additional shares currently equiv- the PLA to at least 2025, pending the alent to a 30 percent equity stake of satisfaction of certain conditions. In ex- BMP, subject to existing laws and regu- change, royalties to Televisa increased lations in the United States and other from 9.36 percent of television revenue conditions, ii) acquired an option to to 11.91 percent of substantially all of purchase at fair value an additional 5 Univision’s audiovisual and interactive percent equity stake in BMP, subject revenues through December 2017, at to existing laws and regulations in the which time royalty payments to Tele- United States, and other terms and visa are set to increase further to 16.22 conditions, and iii) sold to UCI our 50 percent. percent equity interest in TuTv, previously our joint venture with Univision, Today, UCI is the leading Spanish-lan- engaged in satellite and cable pay-TV guage media company in the United programming distribution in the Unit- States. Its assets include: ed States. In December 2011, we made an additional investment of US$49.1 • Univision Network, one of the top million in cash in common stock of five networks in the U.S. regardless BMP, by which we increased our in- of language and the most-watched Spanish-language broadcast televi-

26 sion network in the country most-visited Spanish-language yond Mexico and maintain our reaching 96 percent of U.S. His- website among U.S. Hispanics; status as the leading media com- panic households; • Univision Móvil, a longstanding pany in the Spanish-speaking • UniMás, a leading Spanish- industry-leader with unique, world. We will continue to work language broadcast television relevant mobile products and closely with Univision to make network reaching 89 percent of services; and our content even more appealing U.S. Hispanic households; • Univision Partner Group, a to the Hispanic audiences in the • Univision Cable Networks, specialized advertising and U.S., and to Univision’s advertising including Galavisión, the coun- publisher network. clients. try’s leading Spanish-language cable network, as well as Univi- In 2012, UCI continued its strategy US$ Growth OIBDA1 2012 sion tlnovelas, a 24-hour cable of successfully growing revenues (mm) (YoY) Margin network dedicated to telenove- and maximizing profitability while Television 2,010 6.3% 43.8% las; increasing the long term value of Radio 336 4.1% 30.2% the company. Interac- • Univision Deportes Network, 96 58.8% 23.1% a 24-hour cable network dedi- tive Consoli- cated to sports; The high ratings of the finale of 2,442 7.4% 41.1% dated • ForoTV, a 24-hour Spanish-lan- one of our telenovelas in August of 2012 made Univision the #2 Source: Univision fourth quarter earnings release guage cable network dedicated 1 Operating income before depreciation and amortization to news, and an additional most watched network across all suite of six cable offerings – De key demographics, second only to Película, De Película Clásico, NBC. Bandamax, Ritmoson, Telehit and Distrito Comedia; Similarly, Univision’s Latin • UVideos, the first bilingual digi- GRAMMY Awards in November tal network serving Hispanic attracted more Hispanic viewers America; across all key demographics than • Univision Studios, which pro- the combined audiences of the duces and co-produces reality latest editions of the American shows, dramatic series and oth- Music Awards, Billboard Music er programming formats for Awards, Country Music Awards Univision’s platforms; and MTV Video Music Awards. • Univision Television Group, which owns and/or operates 62 As a result of its ratings success, television stations in major U.S. the Univision Network increased Hispanic markets and Puerto its U.S. network ranking in 2012, Rico; beating CBS to take the #4 spot • Univision Radio, the leading in broadcast primetime among Hispanic radio group which 18-34 year-old adults. Univision owns and/or operates 69 radio is working hard to convert its rat- stations in 16 of the top 25 U.S. ings success into greater revenue. Hispanic markets and Puerto In 2012, revenues increased by 7.4 Rico; percent to US$2.4 billion dollars. • Univision Interactive, a network of products and offerings The U.S. marketplace is of para- including Univision.com, mount importance to Televisa’s which continues to be the Nº 1 strategy to expand our reach be-

27 Iusacell

In April 2011, we made a substantial investment of US$37.5 million for the acquisition of equity and of US$1,565 million for the acquisition of convertible debentures issued by GSF Telecom Holdings, S.A.P.I. de C.V., or GSF, which indirectly owns 100 percent of the outstanding shares of Grupo Iusacell, S.A. de C.V., or Iusacell. On June 14, 2012, we were notified that the Mexican Antitrust Commission approved the conversion of the debentures into equity, subject to our acceptance of certain conditions. On June 15, 2012, we accepted the conditions of the Mexican Antitrust Commis- sion and converted the debentures into common stock of GSF. As a result, we now hold a 50 percent equity stake in GSF. Under the terms of the transaction, both Televisa and Iusacell have equal corporate governance rights.

Iusacell is a well-positioned mobile operator with an extensive national network. It was the first provider of wireless cellular third generation services in Mexico, and its spectrum capacity is sufficient to deploy next generation services to support current and future growth.

28 According to Pyramid Research, to- Televisa’s investment has allowed tal revenues in Mexico’s telecom- Iusacell to resume growth by strength- munications market are estimated ening its capital structure. This al- to reach US$32 billion by 2015, 60 lowed Iusacell to finance capital ex- percent of which is expected to re- penditures and launch new and better sult from mobile services. The par- services, expanding its market share. ticipation of Televisa in mobile voice Since Televisa’s investment in 2011, and broadband is critical to its ef- Iusacell’s customer base has increased forts to expand its presence in the from over 4 million wireless custom- telecommunications industry. ers to 7.4 million at year end 2012. In that year, Iusacell customer base increased 37 percent and its market share reached 7 percent.

29 fundación televisa Fundación Televisa (Fundación) aims Televisa’s various media platforms to act as a positive catalyst for the multiply the impact of Fundación growth and development of Mexico by broadcasting its messages to mil- by providing a broad range of op- lions of viewers throughout Mexico. portunities to Mexico’s population. Through Fundación Televisa, Grupo A notable example is Fundación’s Televisa consolidates its efforts as a nationwide campaign to promote socially responsible company work- the understanding and practice of ing for the benefit of Mexico. universal values. Launched in 2002 and sponsored by Televisa media Together with its collaborators and channels, the program published a sponsors, Fundación is engaged in book series, Vivir los Valores, now in a wide variety of initiatives aimed its eighth edition. It also distributes a at improving the lives of Mexico’s calendar and publishes a website for people. In 2012, Fundación helped primary school-age children that re- improve the nutrition and health inforce the values introduced by the of more than 47,900 children living book series. In 2012 the webpage re- in poverty, built more than 27,000 ceived more than 2 million hits. homes for underprivileged families, and helped realize the dreams of One of Fundación’s most success- more than 3,400 children afflicted ful initiatives has been Bécalos. This with terminal illnesses. program, first launched in 2006, is a prime example of Fundación’s col- We want Mexicans to have access to laborative model. The program is better education and a higher qual- co-sponsored by the Association of ity of life. We target our social invest- Banks of Mexico and is funded in ments to reach the largest number part through donations made via of people possible, using our media ATM machines and grants of dozens assets to achieve this goal. Grupo of enterprises.

30 Bécalos confers fellowships and In 2012, Fundación’s efforts to Fundación will continue to build scholarships on students, teach- encourage collaborator partici- on its long history of expand- ers, and professionals that help pation were particularly suc- ing opportunities for the health, to advance knowledge and skills cessful. Effectively, every dollar well-being, and cultural develop- through additional education and contributed by Fundación gener- ment of all Mexicans. Our ability training. In 2012, Bécalos named ated US$17 in additional contri- to strengthen our social invest- 26,320 new fellows, bringing the butions through the collabora- ments through our network and total number of Bécalos fellows to tors and sponsors – a 67 percent to innovate through our media 163,874. This is a unique program increase over the average 10.18 assets makes Fundación a power- that is made possible through the multiple of the last 12 years. ful force for economic, social, and collaboration of 218 organizations, cultural development in México. firms, and academic institutions. Through Fundación, we promote social responsibility aware- Moreover, for the first time, rec- ness to our employees, many of ognizing the importance of the whom are now active volunteers English language in a globalized in community service programs. world, Bécalos established a new English language scholarship. In addition, Fundación is en- More than 20,000 of these schol- gaged in supporting Mexico’s arships were granted during diverse cultural institutions 2012. Bécalos has become a prime and artists. For example, in example of social transforma- 2012 Fundación produced the tion at a large scale. exhibit “José Ortíz Ramos, a Cin- ematographer from Michoacán” Increasingly, media support pro- during the International Film vided by Televisa assists Fun- Festival in Morelia. This exhibit dación in working with major paid homage to Ramos, a cin- collaborators to accomplish its ematographer involved in the goals. These collaborators, who production of important Mexi- include companies, non-gov- can movies including Nosotros ernmental organizations, and los Pobres (1947) and Ustedes los the federal government, allow Ricos (1948). Fundación to combine resources and multiply its effect.