Investor Presentation

Second Quarter 2016

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, 2015.

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

2

Overview

Content Cable
Sky

3

Our Core Businesses

Content and Distribution

Licensing

Advertising

Network Subscription

& Syndication

Four broadcast channels in Mexico City complemented through affiliated stations
26 pay‐tv networks and 51 feeds in Mexico and globally
Univision royalties
Content licensing fees Exports to 70+ countries

Cable
Sky*

Video:

7.8 million subs

Video: Data: Voice:

4.2 million RGUs⁽¹⁾3.3 million RGUs 2.1 million RGUs In Mexico
A leading DTH system in Mexico and C. America

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 of the equity capital in Univision Holdings Inc.

* In partnership with AT&T which owns 41.3% of Sky. ⁽¹⁾Revenue generating units

4

Revenue breakdown

Consolidated net revenue US$5.3b⁽¹⁾

LTM
2Q'16
2Q'16 YoY
LTM YoY

US$mm⁽²⁾

growth⁽³⁾growth⁽³⁾

8%

38% Content

2,060

11.0%

3.3%

25%

Advertising

1,327

2.1%

‐ 6.2%

4%

Network Subsc.

Licensing and Synd.
239 494
34.7% 25.2%
30.8% 24.4%

22%
38%

9%

32% Cable 22% Sky

1,747

12.9% 20.4% 18.1% 13.8%

32%

1,202
469

8% Other

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

(1)

Operating segment income

Net OSI⁽²⁾of US$2.0b

LTM

Margin

LTM
2Q'16

2Q'16

LTM YoY

US$mm⁽³⁾growth⁽⁴⁾

2%

41.8% 45.5% 41.0%
8.8%
‐1.6%

40% Content 25% Sky

860

33%
40%

10.3%

547

25.6%

33% Cable
2% Other

717

2.5%

41

25%

(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

Ongoing diversification of our top line and O.S.I.

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

Revenue by Business Segment

OSI by Business Segment

40.0 30.0 20.0 10.0
0.0
100
80 60 40 20
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 LTM
2Q16
2007 2008 2009 2010 2011 2012 2013 2014 2015 LTM
2Q16

Content

Sky

Cable

Pub. & Other

Content

Sky

Cable

Pub. & Other

••

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.

••

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 of growth.

•

7

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

Conservative balance sheet

Capacity to continue supporting strategic initiatives

Net Debt / EBITDA Ratio

2.0

Debt composition

1.8
1.6
1.5

1.6 1.2 0.8 0.4 0.0
‐0.4

1.4
1.3

Ps$, 35%

1.1
0.6

US$, 65%

0.1
‐0.1

Cash and equivalents

‐0.2

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

Ps$, 24%

Total debt* (2Q'16): Cash and equiv.: Net debt:
Ps$126.3 billion Ps$63.9 billion Ps$62.3 billion

16.3 years

Average maturity:

US$, 76%

Moody’s Baa1

S&P BBB+

Fitch BBB+

* Includes capital lease obligations Source: with information from Grupo Televisa's public filings.

8

Capital expenditures fueling growth

The capex profile has changed along with the Company

Capex

Total Televisa Revenue Generating Units

17.3

7.8

2,000 1,800 1,600 1,400 1,200 1,000
800

18.0 16.0 14.0 12.0 10.0
8.0
16.3
13.5

6.6
7.3 9.0

11.1

6.0

9.5

5.2

7.9

4.0

6.3

3.0

6.0
4.8

2.0

600

4.1

1.8
9.5

3.6

1.6 2.0

4.0

400

6.9
5.1
4.4

2.0

3.9

200

3.3
2.8
2.4

0

0.0

2007 2008 2009 2010⁽¹⁾2011 2012 2013 2014 2015 LTM
2Q16

2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q16

Content

Sky

Cable

RGUs Cable

Subs Sky

•

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⁾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

The telecom opportunity is significant

Just getting started

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

4.3%
1.6%

3.4%

3.0% 4.9%

3.5%

1.2%
6.2%

7.0%

5.6%
5.7%

5.4%

AMX

16.4%

TEF

7.9%

AT&T Otrhoesr Dish Mega TV‐Sky TV‐Cable

59.6%
63.9%

10

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

Market Highlights

A diverse shareholder base

Ownership by Geographic Region

Public Market Highlights

Unidentified,
Azcárraga

Trust, 14.7%
11.8%

...

Publicly traded in Mexico since 1991 and in the NYSE since 1993.

Other, 5.5%

One of the 10 largest companies in Mexico based on market capitalization.

Europe, 5.4%

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.

North America,
62.6%

••

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)

11

Source: Ipreo and internal estimates.

Media and Telco dynamics – watching them 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

Size of the advertising market

The Mexican advertising market is undeveloped

GDP vs. Ad Spend Per Capita

Total Advertising Spend / GDP

600 500 400 300 200 100
0
1.80% 1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00%

1.63%
1.61%

United States
Australia
UK
Canada

1.14%

1.02%

0.97%
0.94%

0.84%

Japan
Germany

0.78%
0.68%
0.58%

France

40,000

0.48%

South Korea

Italy

GLOBAL

Brazil

China
Spain
Russia

Mexico

India

0

10,000

20,000

30,000

50,000

GDP Per Capita (2014E)

••

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.

••

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.

13

Source: MoffetNathanson, The World Bank, MAGNA Global, company reports, Zenith Ad Spend report and JP Morgan

Allocation of advertising budgets

In Mexico, the relative scale of FTA is very important

Advertising by Platform ‐ US

Advertising by Platform ‐ Mexico

200 180 160 140 120 100
80
80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000

‐

60 40 20

‐

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

FTA

Pay TV

Radio

Other
Outdoor Online

FTA

Pay‐TV

Radio

Other
Outdoor

Online

Newspapers Magazines

••

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.

••

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.

14

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

Demand for pay television

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

Pay TV Penetration

Market Share Pay TV – Subs*

90% 80% 70% 60% 50% 40% 30% 20% 10%
0%

85%
85%

84%

83%

83% 83%

82%

82%
82%

Other
4%

Dish 15%

Sky 42%

56%
52%
48%
45%

40%

Megacable
16%

36%
29%
26%
25%
24%
22%
19%

TelevisaCable
23%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Mexico

USA

••

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

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

15

Transformational technologies

Mexico is a few years behind

Access to Key Technologies Mexico
Access to Key Technologies US

100
90 80 70 60 50 40 30 20 10
0
100
90 80 70 60 50 40 30 20 10
0

´04 ´05 ´06 ´07 ´08 ´09 ´10 ´11 ´12 ´13 ´14

´01 ´02 ´03 ´04 ´05 ´06 ´07 ´08 ´09 ´10 ´11 ´12 ´13 ´14

Smartphone Computer

Pay TV

Mobile

Smartphone

Computer

PayTV

Mobile

Internet

••

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.

•••

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.

16

Source: IFT, World Bank, PEW Research, Statista, Morgan Stanley, CONAPO, INEGI, Akamai, Internal estimates.

Dependence on content with short life‐span

Less sports and news, more scripted content for Televisa

U.S. FTA Share of GRPs

Televisa Share of Gross Rating Points (GRPs)

News,
17%

100%
90% 80% 70% 60% 50% 40% 30% 20% 10%
0%

Various,
29%
Kids,

1%

Sports,
31%
Drama,

22%

Televisa Share of GRPs

News,
9%

2010
Drama Cartoons
2011 Various Magazine

2012

2013

2014

1H´15

Kids,
8%

Movies & Series News Sports

Sports,
5%
Various,

44%

••

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.

Drama,
34%

•

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

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.

17

Overview

Content Cable
Sky

18

Three pillars of our content strategy

I. Strengthening our content

II. Re‐pricing our advertising inventory

III. Expanding sources of content revenue

19

I. Strengthening our content

Exploring a number of initiatives

Improving the appeal of our prime time
Replacing