2015 SUSTAINABILITY REPORT TOWARDS HYPER– Contents Message from the Connecting Sustainability Service Employees Community Environment Corporate Annex Chief Executive Officer with the World Excellence Governance 1 15 Years encouraging We continue to be a new forms of communication key factor in closing the digital divide in Latin America with pro-active involvement in the deployment and modernization of telecommunications services, which transform the possibilities of a growing population through new services that are increasingly smart and accessible. Contents Message from the Connecting Sustainability Service Employees Community Environment Corporate Annex Chief Executive Officer with the World Excellence Governance 2 The past five years have been transformational. We have invested more than US$50 billion in building a convergent platform to provide comprehensive telecommunication services, and we are prepared for an exponential growth in data traffic in the near future. 17,500 Km of submarine cable AMX-1 Contents Message from the Connecting Sustainability Service Employees Community Environment Corporate Annex Chief Executive Officer with the World Excellence Governance 3 366.3 Million total accesses Besides connecting people anytime, anywhere, the social impact of connectivity is immeasurable. Hyper-connectivity will allow people, objects, businesses, transportation media, homes and almost anything to be connected to the Internet to operate more efficiently and productively. Contents Message from the Connecting Sustainability Service Employees Community Environment Corporate Annex Chief Executive Officer with the World Excellence Governance 4 The initiatives taken within a framework of social responsibility and sustainability allow +49,000 us to continue building People took the 2015 closeness, encouraging sustainability survey digital inclusion and embarking on the road to hyper-connectivity. CONTENTS Message from the Chief Executive Officer 7 Connecting with the World 8 Sustainability 14 Service Excellence 18 Employees 25 Community 33 Environment 39 Corporate Governance 47 Annex 54 Contents Message from the Connecting Sustainability Service Employees Community Environment Corporate Annex Chief Executive Officer with the World Excellence Governance 5 OUR EVOLUTION IN 15 YEARS OF OPERATIONS 2000 2004 2006 Creation of América Móvil, a Best annual performance in América The adoption of the Claro Mexican company with operations Móvil’s history by adding 17.2 million brand begins in Central American in Latin America; Telcel is its mobile subscribers, and incorporating countries. Claro begins as a Mexican subsidiary. Nicaragua, Honduras and Uruguay to mobile services brand. its operations. 2003 2005 2007 América Móvil grows exponentially and Operations expand towards Peru, We completed our footprint in Latin reaches 45.3 million lines, besides that Chile, Paraguay and the state of Minas America. One in every three people acquires five companies in four Latin Gerais in Brazil. By this year, América with a mobile phone is an América American countries: Brazil, Colombia, Móvil was already offering voice and Móvil customer. El Salvador and Argentina, extending its data services to almost 90% of the total operations to nine countries. Latin American population, covering more than 750 million people across the continent. Contents Message from the Connecting Sustainability Service Employees Community Environment Corporate Annex Chief Executive Officer with the World Excellence Governance 6 OUR EVOLUTION IN 15 YEARS OF OPERATIONS 2008 2011 2014 By this year, the company had helped increase América Móvil acquires Telmex in América Móvil acquires Telekom Austria, mobile phone penetration in Latin America to Mexico and Telmex Internacional in extending its operations to 25 countries, 82%, almost seven times the level recorded in the South America. This year operations 18 countries of the Americas and 7 in year of its founding. In the same year the company began in Costa Rica. Central and Eastern Europe. obtained the license to operate in Panama. 2010 2012 2015 With 211 million mobile subscribers, América Móvil launches Claro Video, The spinoff of a new company called América Móvil is the third largest which provides users with unlimited Telesites, S.A.B. de C.V. was approved in telecommunications company in access to films, TV series and other con- April. This year also saw the successful the world in terms of proportional tent in return for a monthly fee. Telcel launch of the satellite Star One C4 in the subscribers. launches the 4G LTE Network in Mexico. Kourou Space Center in French Guiana. Contents Message from the Connecting Sustainability Service Employees Community Environment Corporate Annex Chief Executive Officer with the World Excellence Governance 7 MESSAGE FROM THE CHIEF EXECUTIVE OFFICERG4-1 In 2015 América Móvil celebrates 15 Today, our platforms are made up of almost impact. Furthermore, we took on “More than 195,000 years of work, of offering infor- 680,000 kilometers of fiber optic cable, 173,000 the task of quantifying the green- mation technology solutions base stations, 64 million homes passed (FTTH), house gas emissions generated by employees strive Daniel Hajj and connecting millions of eight satellites, 18 data centers and 17,500 kilome- our operations so we can plan ways Aboumrad users in Latin America, and ters of AMX-1 submarine cable. to reduce them and contribute to every day to offer Chief Executive Officer more recently, Europe. To- the care for our planet. of América Móvil day we proudly share with None of this could have been achieved without the our customers you that over these years we hard work and dedication of our more than 195,000 The challenges ahead are many have positioned the company employees, who strive every day to offer our cus- and, to meet them, we are working personalized service as one of the world’s largest telecom- tomers prompt and personalized service and at- on major infrastructure projects munication operators. tention, under a culture of cooperation and team- that we are sure can help us stay and attention” work, with which we seek their ongoing growth and one step ahead in offering techno- These 15 years have been challenging. We have development. logical solutions for hyper-connectivity and the In- seized opportunities for geographic and economic ternet of Things. expansion, have seen the evolution of our industry Throughout these 15 years we have offered con- and the growth triggered by the use of mobile tele- nectivity in zones where access to communications At América Móvil we will continue developing tele- phones with Internet access, which we have wisely was null. This has encouraged the development of communications to increase the economic growth taken advantage of, thanks to our financial solidity local communities, benefiting a tremendous num- in Latin America and Europe. and the cutting-edge technology we have incorpo- ber of people and businesses. rated year after year. To all of you, thank you for your preference. Similarly, we have supported initiatives and ac- Today, we have earned the preference of 286 mil- tions that benefit society by promoting the reduc- lion mobile subscribers and 80.8 million Revenue tion of the digital divide, education, employment, Generating Units (RGUs) conformed by fixed lines, highway safety, health, sports, culture and environ- broadband access and pay TV subscribers, which mental care. have positioned us as the main operator in Latin America and the fourth largest in the world. We have also made a considerable effort to opti- Daniel Hajj Aboumrad mize our technology and infrastructure, ultimate- Chief Executive Officer of América Móvil In 2015 we continued to invest in infrastructure to ly to save on the consumption of electricity, a re- strengthen and expand our service network. source that represents our greatest environmental Contents Message from the Connecting Sustainability Service Employees Community Environment Corporate Annex Chief Executive Officer with the World Excellence Governance 8 CONNECTING G4-4, G4-6, G4-8, WITH THE WORLDG4-9, G4-56 Life today would be inconceivable without access to telecommunications, not only because they play a primordial role in the social and economic development of all countries, but also because they have become a key industry at a global level. In América Móvil, we connect people, organizations and technological tools through comprehensive mobile and fixed telecommunication services in 18 countries of Latin America –where we are leaders in the mobile telecommu- 286 nications industry- and in seven countries in Europe, giving us the oppor- tunity to serve a population of more than 892 million people. We also offer a wide range of value-added services that provide tools for meeting the needs of all types of industries. Servicing more than 286 million mobile customers and more than 80 mi- llion Revenue Generating Units (RGUs)1 makes us the fourth largest com- Million mobile customers pany in the world in terms of proportional subscribers. Our main brands are Telcel, Telmex, Claro, Embratel, Net, TracFone, Straight Talk, A1, Velcom, Mobitel, Vipnet, Vip Operator, Vip Mobile and Si.mobil. 1 RGUs: Revenue Generating Units conformed by fixed lines, broadband accesses and pay TV subscribers. Contents Message from the Connecting Sustainability Service Employees Community Environment Corporate Annex Chief Executive Officer with the World Excellence Governance 9 Main brands and businesses in the