Investor Presentation
As of Third Quarter 2018 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 operations, (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, 2017.
The results in this presentation appear as they were originally reported in our financial statements.
2 SNAPSHOT: Our Core Businesses
Share of Consolidated Revenue LTM 3Q’18 CONTENT CABLE A leading cable operator in Mexico Advertising Four broadcast channels Video: 4.3 million RGUs * Video in Mexico City and Data: 4.2 million RGUs affiliated stations Voice: 2.5 million RGUs * Revenue generating units Network Subscription Voz 26 pay-tv networks and 34% 69 feeds in Mexico and 37% globally CABLE CONTENT Licensing & Syndication Univision royalties, other WiFi SKY licensing fees, and exports to over 80 countries 21% CONTENT
SKY
SKY A leading DTH system in Mexico, also operating in Central America and the Dominican Republic 7.8 million video subs
Source: Grupo Televisa's public filings 3 SNAPSHOT: Highlights
o North of Ps 100 billion in consolidated revenue, growing at a CAGR of 6.4% since 2013
o Consolidated Operating Segment Income Ps 40 billion, a CAGR of 6.2% since 2013
o Investment grade. Average debt maturity of 14.8 years. Net-debt-to-EBITDA of 1.8x
o Declining Capital Expenditures-to-Sales ratio from 27.6% in 2016 to 17.4% in LTM 3Q’18
o 18.8 mm revenue generating units (“RGUs”) contributing with 61.6% of Consolidated OSI in LTM 3Q´18
o Fastest growing broadband provider in the country in terms of new customers
o Content production powerhouse with an average free-to-air audience share of 2/3rds
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
o Solid fundamentals
o Diversified revenue streams
o Growing operating cash flow
o Untapped opportunities in growth markets
o Strong balance sheet
5 SOLID FUNDAMENTALS: 3rd Quarter 2018
o Consolidated Net Sales and OSI Consolidated grew 10.5% and 10.4%, Consolidated OSI Revenue respectively Ps. in billions Ps. in billions
o Double-digit growth in Cable 10.3 25.0 Segment Sales and OSI of 10.0 23.7 9.6 9.3 22.3 22.7 10.8% and 10.9%, respectively 8.3 19.8 8.0 18.8 Sky reached an OSI margin of 7.5 17.4 o 6.8 16.0 47.5%, and 51 thousand Blue Telecomm subscribers
o The sublicensing of World Cup rights contributed with Ps.593 million in OSI
o Third consecutive quarter with growth in advertising sales, reaching 2.2%, and 5.0% year to date
Source: Grupo Televisa's public filings 6 SOLID FUNDAMENTALS: Cable
o Strong top line growth: 15.6% CAGR from 2013 Ps. in billions Cable Revenue 9.2 8.3 o OSI margins have expanded rapidly, reaching 42% in 8.2 3Q’18, up from 36% in 2013 7.3
5.3 o During 3Q’18 total net adds were 274 thousand, 4.4 3.9 representing an year-over-year growth in RGUs of 3.4 11.2%.
Net Adds ('000) 4Q17 1Q18 2Q18 3Q18 Video 62 53 78 -35 Broadband 157 173 136 62 3Q'11 3Q'12 3Q'13 3Q'14 3Q'15 3Q'16 3Q'17 3Q´18 Telephony 23 36 115 247 RGU Net Adds 242 262 329 274
Ps. in billions Cable O.S.I. 3.9 Churn has come down significantly 3.5 o 3.4 3.0 o After important decline in capex, it is now free cash flow positive 2.0 1.4 1.5 1.2 o Over 14 million homes passed, 11 million of which can receive data speeds of 100 Mbps
3Q'11 3Q'12 3Q'13 3Q'14 3Q'15 3Q'16 3Q'17 3Q´18 Source: Grupo Televisa's public filings 7 SOLID FUNDAMENTALS: Sky
o As of 3Q’18, close to eight million pay TV Sky Revenue customers in Mexico, Dominican Republic and Ps. in billions Central America 5.5 5.4 5.4 4.9 4.5 4.1 o Revenue reached Ps 22.1 billion LTM 3Q’18, 3.7 contributing with 22% of consolidated revenue 3.1
o Margins have remained solid at around mid-40s for more than 10 years, in spite of strong competition
o Only pay TV platform in Mexico to transmit all 64 matches of the 2018 Soccer World Cup 3Q'11 3Q'12 3Q'13 3Q'14 3Q'15 3Q'16 3Q'17 3Q´18
Recently launched voice and data services under o Ps. in billions Sky O.S.I. the Blue Telecomm brand: 2.5 2.7 2.6 • Fixed broadband through incumbent’s network 2.3 2.1 (3 to 200 Mbps – subject to incumbent’s 1.9 1.7 technical capability in a given location) 1.5 • Fixed wireless broadband through Red Compartida and AT&T’s wireless network (5 and 10 Mbps) Blue Telecom o As of 3Q’18, over 50,000 customers 3Q'11 3Q'12 3Q'13 3Q'14 3Q'15 3Q'16 3Q'17 3Q´18
Source: Grupo Televisa's public filings 8 SOLID FUNDAMENTALS: Content
We are the leading producer of Spanish language Ps. in billions Content Revenue o content in the world. 9.7 8.8 8.6 8.3 8.5 8.7 8.0 8.0 o A multi-year restructuring (‘15-’17) of our advertising sales business caped top line growth
o Throughout this process, Televisa implemented an aggressive cost cutting plan in its Content division
3Q'11 3Q'12 3Q'13 3Q'14 3Q'15 3Q'16 3Q'17 3Q´18 o Simultaneously, a relevant portion of its content production budget was repurposed to modernize its programming offer Ps. in billions Content O.S.I. o Starting 2018, a new pricing mechanism has 4.2 4.4 allowed our advertising business to resume 4.0 4.0 4.0 3.6 3.7 growth 3.1 o In total, in 2018, Televisa is expecting to invest more than Ps 20 billion in content, most of it produced in-house.
3Q'11 3Q'12 3Q'13 3Q'14 3Q'15 3Q'16 3Q'17 3Q´18
Source: Grupo Televisa's public filings 9 SOLID FUNDAMENTALS: Content
o #1 morning, afternoon and Prime Time channel in Mexico (Ch.2)Las o Most watched shows (Mo-Fi): Mi marido tiene más familia, La Rosa de Guadalupe Estrellas o #1 Magazine show: Hoy o Sunday reality leaders: Pequeños gigantes and Mira quien baila.
o Channel 2 + Channel 5 have as much audience as all pay TV channels combined Kids o New content: Reto 4 Elementos o Most successful animated content
o #1 morning newscasts with Despierta con Loret and Al aire con Paola News o #1 night newscast with En punto con Denise Maerker o #1 news channel on a national basis: Foro TV
o 21 out of 30 most watched soccer matches in local league Sports o Most watched night soccer show: La Jugada. Exclusive sports events o Leader in Soccer World Cup audience
Movies o Most watched movies in FTA TV: No se aceptan devoluciones and No manches Frida
o 5 of our networks within the 10 most watched pay TV channels in Mexico Televisa o Most watched channel among women: Tlnovelas and U Networks o #3 and #4 most watched movie networks: De Película and Golden o Leaders in music/lifestyle channels: RMS and Bandamax 10 DEFINING TRENDS
o Solid fundamentals
o Diversified revenue streams
o Growing operating cash flow
o Untapped opportunities in growth markets
o Strong balance sheet
11 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
35.3 21.9 22.2 22.1 39.2 33.0 31.9 34.9 36.7 19.3 33.8 34.3 34.0 28.5 17.5 16.1
20.9 17.1
2013 2014 2015 2016 2017 3Q´18 2013 2014 2015 2016 2017 3Q´18 2013 2014 2015 2016 2017 3Q´18 LTM LTM LTM
Strong organic growth as a result Leveraging off its customer base, Resuming growth after the of attractive 3-play offers and a one of every four homes in negative impact of an unfavorable focus on customer service Mexico, to sell voice and data ad sales pricing mechanism
Source: Grupo Televisa's public filings 12 DIVERSIFIED REVENUE STREAMS Distribution (Cable & Sky) overtook Content in terms of OSI in 2014
Consolidated Revenue Contribution to OSI Ps. in billions
120.0 OSI Margin 100.0%
100.5 90. 0% Others
100.0 96.3 94.3 80. 0% 21% 88.1 24%
80.1 70. 0% 32% 80. 0 34% 37% 73.8 37% Cable
60. 0% 25% 25%
60. 0 50. 0% 25% 25% 40. 0% 24% 27% Sky 40. 0 39.7% 39.6% 39.6% 39.2% 38.4% 38.5% 30. 0%
20. 0%
20. 0 Content 10. 0% 52% 48% 41% 38% 34% 37%
0.0 0.0% 2013 2014 2015 2016 20173Q´18 LTM 2013 2014 2015 2016 2017 3Q´18 LTM
Our multiple revenue sources Cable has overtaken Content as the have allowed us to post a CAGR most important contributor to of 6.4% since 2013 Consolidated OSI
Source: Grupo Televisa's public filings 13 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 Content Revenue mix has changed over the Ps. in billions years All Other Content Revenue Advertising Network Subscription Advertising Revenue During 3Q’18, advertising Licensing & Syndication o Worldcup Sublicensing revenues represented 58% 1.0 24% 27% 27% 29% of Content revenues (excl. 1.5 36% 1.4 1.8 2.2 38% 38% 42% World Cup sublicensing) 1.3 2.2 2.5 0.9 2.2 0.7 0.8 0.7 0.9 1.1 1.2 o On a consolidated basis, 0.9 advertising revenues represented 20% of 76% 73% 73% 71% consolidated revenues in 64% 62% 62% 58% 3Q’18
o Televisa continues to explore 6.1 6.1 6.4 6.0 5.5 5.4 4.9 5.1 other ways of diversifying its content revenue base
Source: Grupo Televisa's public filings 14 DIVERSIFIED REVENUE STREAMS Content The majority of our Licensing and Syndication revenue originates in the Univision Royalties
o We monetize our content in Royalties U.S. through our licensing Univision Economics USD Millions agreement with Univision. USD Millions Total Revenue 374.5 Adjusted OIBDA Interest Expense o The royalty rate is 16.45% of substantially all of Univi- sion’s audiovisual revenue. 3,042 3,016 2,993 324.6 2,911 2,858 313.9 313.7 311.1 o A step up in the royalty rate came into effect on January 2018.
1,254 1,312 1,333 1,288 1,236
573 540 494 o In addition to our stream of 423 401 royalties, we hold 36% of Univision’s equity, on a fully 2014 2015 2016 2017 2Q'18 2014 2015 2016 2017 3Q´18 diluted, as converted basis. LTM LTM
Source: Grupo Televisa’s and Univision’s public filings 15 DIVERSIFIED REVENUE STREAMS Content We are developing our digital platforms to turn them into a new, solid revenue stream
KPI Q3 Q3 % o We closed 3Q18 with 23.5 Some of our key online 2017 2018 Chg. million subscribers in destinations: Televisa 9m 15m 81 YouTube, almost doubling Sites’s the number of subscribers in www.televisa.com Users the last twelve months. Televisa 140m 262m 87 www.lasestrellas.tv Pageviews o The number of views in YouTube, Facebook and https://deportes.televisa.com YouTube 995m 1.8b 83 Instagram reached more views than 3.2 billion, a year-over- https://noticieros.televisa.com Facebook 1.0b 1.4b 40 year increase of 61%. views In our own digital platforms, Instagram 12.7m 41mm 222 o views we closed the quarter with 15 million users, 81% more Total 2b 3.2b 61 than last year, and page views increased by 87% to 262 million.
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) 16 DIVERSIFIED REVENUE STREAMS Cable Within Cable, data and voice account for 61% of revenue generating units
Strong gross additions Cable RGU Mix o Cable RGU in millions o Voice and data are the main Video Voice Data sources of growth Voice RGUs Data RGUs o Many data customers are Video RGUs upgrading to faster speeds 2.5 43% 41% 39% 49% 49% 45% 2.1 2.1 1.9
1.2 3.8 4.2 21% 23% 3.4 21% 22% 3.1 18% 18% 0.9 2.3 1.7
34% 35% 38% 38% 4.1 4.2 4.2 4.3 33% 33% 3.4 2.5
2013 2014 2015 2016 2017 3Q´18 2013 2014 2015 2016 2017 3Q´18
* Load Factor refers to number of services (video, voice, or data) per customer. Source: Grupo Televisa's public filings 17 DIVERSIFIED REVENUE STREAMS Cable
Our izzi go app further positions our cable operation for evolving viewing habits
o 68 live channels from Mexico and from global content distributors
o Over 30 thousand on-demand assets from Televisa’s extensive library, FOX Premium, HBO MAX, and other international content partners
o Different content at the same time, on the TV and other devices
o With izzi Kids, six live TV channels and hundreds of hours on video on demand
o Over 170 thousand users as of 3Q18
Source: Grupo Televisa's public filings 18 DEFINING TRENDS
o Solid fundamentals
o Diversified revenue streams
o Growing Operating Cash Flow
o Untapped opportunities in growth markets
o Strong balance sheet
19 GROWING OPERATING CASH FLOW The free cash flow profile of Televisa has improved dramatically
o Exanding operarting cash flow in O.S.I. minus Capex Capital Expenditures Cable and Sky has increased our Ps. in billions Ps. in billions ability to generate strong free
Cable cash flow Sky 22.0 21.0 Content o The contribution to consolidated OSI, net of capital expenditures, has doubled since 2016 14.8
17.6 16.2 11.3 14.7 10.8 9.2 11.4 10.1 7.3
6.2 5.0 5.1 5.4 3.8 3.7 2.0 2.4 2.5 2.9 2.1 2.5
2013 2014 2015 2016 2017 3Q´18 2013 2014 2015 2016 2017 3Q´18 LTM LTM
Source: Grupo Televisa's public filings 20 GROWING OPERATING CASH FLOW: Cable We are entering a harvesting phase after heavy investments in infrastructure Cable net adds RGUs in millions 1.5 o During 2015 and 2016, Televisa accelerated its capital investments in cable segment 1.1
0.7 0.7 It embarked on a capex-heavy phase to upgrade 0.6 0.6 o 0.5 0.5 its network and support growth in RGUs 0.4 0.4 0.2
o Cable capex reached Ps 17.6 billion in 2016 making Televisa one of the most important investors in Mexico’s telecom infrastructure that year
o Having completed the upgrade of most of its Cable OSI net of CAPEX network, Cable capex declined 42% in 2017 Ps. in billions 3.9 3.6 o As a percentage of revenues, cable capex came down from 55% in 2016 to 32% LTM 3Q’18 2010 2011 2012 2013 2014 2015 2016 2017 3Q´18 -1.4 LTM
-4.3 -5.2 -4.8 -8.9 -5.8
-8.6 Source: Grupo Televisa's public filings. * Organic growth only. Excludes RGU growth from acquisitions 21 GROWING OPERATING CASH FLOW: Sky Growth in Sky subs is lower, but so are Sky net adds capital needs. Cash flow has increased Subs in millions substantially after 2016 1.15 1.09 0.96 0.86 0.74 0.62 0.65 o Sky launched VeTV is 2010, a pre-paid basic pay TV 0.20 package 0.17 -0.02 -0.18 o Following its launch, Sky embarked on an aggressive campaign to add customers
o Its net adds reached a peak in 2012 installing over 40,000 new services every week, on average Sky OSI net of CAPEX Ps. in billions In 2016, growth further accelerated with the shut- 6.3 o 6.2 down of the FTA analog signals
3.5 3.7 o Slower net adds means slower deployment of 3.1 2.8 2.7 capital to activate new customers 2.3
o With slower net adds starting in 2017, Sky free -0.4 cash flow generation has increased substantially 2010 2011 2012 2013 2014 2015 2016 2017 3Q´18 LTM
Source: Grupo Televisa's public filings 22 DEFINING TRENDS
o Solid fundamentals
o Diversified revenue streams
o Growing operating cash flow
o Untapped opportunities in growth markets
o Strong balance sheet
23 UNTAPPED OPPORTUNITIES: Broadband Market
Composition of Data Subs in Mexico Data Net Adds Thousand RGUs Incumbent 2.7% Televisa 110 18.7% Cable DSL 36 Coaxial 41.1% 14 Fiber 173 145 157 4 Other 119 136 62 37.5%
-23 -8 2Q´17 3Q´17 4Q'17 1Q´18 2Q´18 3Q´18
According to the Mexican regulator, as of the end o o In the last six quarters our Cable Segment has of 2017, 7.2 million customers were still on added almost six times the data RGUs added by copper (DSL: Digital Subscriber Line) 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 24 UNTAPPED OPPORTUNITIES: Broadband Market
Market Share Izzi - Data services Telecom Market Ps. in billions Quarterly 22.2% 23.0% 20.8% 21.3% 7.4 7.4 AMX 16.4% 5.6 Telefónica AT&T 13.1% 4.0 11.0% Megacable
13.9 Sky 65.8 Izzi 6.7 Otros
As of 3Q 2018 2012 2013 2014 2015 2016 2017 3Q´18
o Our cable operation, izzi, has been gaining o In spite of Televisa’s strong growth in the market share for more than 5 years telecom market, it is still a small participant in the industry
Source: Internal analysis based on IFT and other companies’ public information 25 UNTAPPED OPPORTUNITIES: Broadband Market
Fixed Broadband Penetration
% per 100 inhabitants 50.0
40.0
30.0
20.0
10.0
0.0 Italy Chile Israel Japan Korea Latvia Spain Slovak… France United… Turkey Poland Ireland Austria Greece Iceland Finland Estonia Canada Norway Mexico Sweden Belgium Average Slovenia Hungary Portugal Australia Denmark Germany Lithuania Colombia Switzerland Netherlands Luxembourg New Zealand United States Czech Republic
o Mexico’s broadband market is just developing. Data customers in Mexico still have among the lowest speeds in the OECD.
o Mexico has the second lowest penetration of data 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 2017 26 UNTAPPED OPPORTUNITIES: Broadband Market
There are 33mm homes in the country,
of which 14mm homes are passed by Televisa Cable.
Of those, 11mm homes are capable of getting 100Mbps from Televisa Cable,
but only 4.1mm homes are currently our customers
There is plenty of room for further growth under existing homes passed
o Less than half of our homes passed are currently customers of Televisa for broadband services
o 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 27 DEFINING TRENDS
o Solid fundamentals
o Diversified revenue streams
o Growing operating cash flow
o Untapped opportunities in growth markets
o Strong balance sheet
28 STRONG BALANCE SHEET Limited FX exposure, comfortable debt profile, long maturities
An operating hedge with a similar amount in dollar-denominated revenue and in dollar-denominated costs and expenses • dollar-denominated revenue US$788 million (2017) • dollar-denominated costs and expenses US$690 million (2017)
A balance sheet hedge with a similar amount in dollar-denominated assets and liabilities (3Q18) • US$3.9b in total debt includes (1) USD debt, (2) capital lease obligations, (3) other notes payable • US$4.2b in total assets includes (1) our stake in Univision; (2) cash and temporary investments, A/R
We have a very comfortable debt profile with very long maturities
• Net debt to EBITDA ratio: around 1.8x as of 3Q18 (Gross debt to EBITDA 3.3x) • Closest USD-denominated maturity: US$600 million in 2025 • Closes MXN-denominated maturity: 10 billion pesos in 2020 • Weighted average maturity: USD is 20.0 years, MXN is 7.7 years • 3Q18 USD/MXN breakdown: 58% of debt was in USD, 42% of debt in MXN • 3Q18 weighted average interest rates: in USD 6.05%, in MXN 7.55% • US$224 million in interest expense (2018), all of which is hedged
Source: Grupo Televisa's public filings. 29 OTHER RELEVANT INFORMATION
30 NON-CORE ASSETS: Selling or rationalizing
Consolidated Under the “Other Businesses” line item Contribution to Consolidated Sales 7.8% o Gaming: Casino sites and online lottery business. 2017 Revenues of Ps 2.85 billion. Exploring sale of asset.
o Radio: (50% equity interest). Owned and affiliated radio stations. 2017 Revenues of Ps 851 million. Exploring sale of asset.
o Publishing: The leading Spanish-language magazine publisher in Latin America. Recently closed unprofitable markets. Contribution to OSI
1.9% Unconsolidated
o Imagina: (19% equity interest). Spanish media group Imagina. Closed sale during 2018. Proceeds of approximately USD 341 million
o Live entertainment: (40% equity interest). The Company organized 2,986 events during 2017. Exploring sale of asset.
Source: Grupo Televisa's public filings 31 SUSTAINABILITY: Many recent milestones
o Member of the Dow Jones Sustainability MILA Pacific Alliance Index.
o One of only three Mexican companies to be included in the Dow Jones Sustainability Emerging Markets 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 Constituent of the FTSE4Good Emerging Index.
o Members 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 first time with the “Empresa Socialmente Responsable” award.
o Our facilities Santa Fe, San Angel 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 Angel and Collection Center.
Source: Grupo Televisa's public filings 32 SUMMARY
Solid fundamentals
Diversified revenue streams
Growing operating cash flow
Untapped opportunities in growth markets
Strong balance sheet
33 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 34 [email protected]