Investor Investor Presentation Presentation First quarter 2019
As of First 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 1Q19 CONTENT CABLE A leading cable operator in Mexico Advertising Four broadcast channels Video: 4.4 million RGUs * Video in Mexico City and Data: 4.6 million RGUs affiliated stations Voice: 3.2 million RGUs throughout the country * Revenue generating units Voz Network Subscription 35% 26 pay-tv networks and 36% 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 internet provider, also operating in Central America and the Dominican Republic 7.6 million RGUs
Source: Grupo Televisa's public filings 3 SNAPSHOT: Highlights
o North of Ps 100 billion in consolidated revenue, growing at a CAGR* of 5.7% since 2012
o Consolidated Operating Segment Income (“OSI”) of Ps 41 billion, a CAGR of 5.4% since 2012
o Investment grade. Average debt maturity of 14.5 years. Net-debt-to-OSI of 2.3x
o Declining Capital Expenditures-to-Sales ratio from 27.6% in 2016 to 19.3% in LTM 1Q19
o 19.7 mm revenue generating units (“RGUs”) contributing with 62.4% of Consolidated OSI in LTM 1Q19
o Fastest growing broadband provider in the country in terms of new customers
o Content production powerhouse. During the first 9 of the top 10 rated 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
*Compound Annual Growth Rate 4 DEFINING TRENDS
I. Highlights 1Q’19
II. Diversified revenue streams
III. Growing operating cash flow
IV. Untapped opportunities in growth markets
V. Strong balance sheet
5 Highlights 1Q’19
Consolidated o During the quarter, our Cable, Sky and Content segments contributed with 46%, 25% and 24%, respectively, of Consolidated Operating Segment Income.
Cable o Continued strong momentum in the Cable segment, adding 285 thousand RGUs during the quarter, and reaching a total of 12.1 million RGUs. o Double-digit growth in Segment Sales and Operating Segment Income of 14.2% and 17.3%, respectively. o Operating Segment Income growth of 14.5% in Enterprise Operations, the third consecutive quarter of growth after its restructuring in 2018.
Sky o Sky closed the quarter with 7.6 million RGUs, of which 165 thousand were broadband RGUs. o Sky maintained a strong Operating Segment Income margin, reaching 43.7%.
Content o Ongoing leadership with our content offer airing 9 of the top 10 programs in Mexican Television. Prime time viewership in our flagship channel grew year-over-year by 4.6%. o Segment Sales dropped by 9.0% mostly due to a significant drop in advertising sales to government entities. o During the first quarter, Advertising Sales represented 15.7% of Consolidated Net Sales.
Source: Grupo Televisa's public filings 6 Highlights 1Q’19
Consolidated Consolidated OSI
Revenue Ps. in billions Ps. in billions 9.4 22.8 23.4 9.1 22.2 8.6 21.7 8.4 19.9 7.6 16.9 15.5 15.2 5.6 5.7 6.1
Consolidated Operating Segment Consolidated Sales grew 2.6%, Income grew 3.0%, CAGR of CAGR of 5.7% since 2012 5.4% since 2012
Source: Grupo Televisa's public filings 7 Highlights 1Q’19
Cable Revenue o Strong top line growth: 13.9% CAGR from 2013 Ps. in billions
9.9 o OSI margins have expanded rapidly, reaching 42.5% 8.7 in LTM 1Q’19, up from 35.8% in 2013 7.6 8.1 6.7 o During 1Q’19 total net adds were 285 thousand, 4.6 3.8 4.0 representing a year-over-year growth in RGUs of 17.0% .
Net Adds ('000) 2Q18 3Q18 4Q18 1Q19 Video 78 -35 6 -9 1Q'12 1Q'13 1Q'14 1Q'15 1Q'16 1Q'17 1Q'18 1Q´19 Broadband 136 62 81 89 Telephony 115 247 229 205 Cable O.S.I. RGU Net Adds 329 274 316 285 Ps. in billions o Churn has come down significantly 4.3 3.7 3.4 o After important decline in capex, it is now free cash 3.2 flow positive 2.7
1.6 o Over 14.6 million homes passed, of which more 1.4 1.3 than 90% can receive data speeds of 100 Mbps
1Q'12 1Q'13 1Q'14 1Q'15 1Q'16 1Q'17 1Q'18 1Q´19
Source: Grupo Televisa's public filings 8 Highlights 1Q’19
o As of 1Q’19, close to 7.6 million RGUs in Mexico Sky Revenue Ps. in billions and Central America 5.3 5.5 5.5 5.3 o 4.6 Revenue reached Ps. 21.8 billion in LTM 1Q´19, 4.2 contributing with 20.4% of consolidated revenue 3.8 3.4
o OSI Margins have remained solid for more than 10 years, in spite of strong competition
o We launched broadband services under the Blue Telecomm brand: 1Q'12 1Q'13 1Q'14 1Q'15 1Q'16 1Q'17 1Q'18 1Q´19 • Fixed broadband through incumbent’s network (3 to 200 Mbps – subject to incumbent’s Sky O.S.I. technical capability in a given location) Ps. in billions
• Fixed wireless broadband through Red 2.5 2.4 2.4 2.3 Compartida and AT&T’s wireless network (5 2.1 1.9 and 10 Mbps) 1.8 1.6 o As of 1Q´19, 165 thousand broadband RGUs
1Q'12 1Q'13 1Q'14 1Q'15 1Q'16 1Q'17 1Q'18 1Q´19
Source: Grupo Televisa's public filings 9 Highlights 4Q’18
Content Revenue o We are the leading producer of Spanish language Ps. in billions content in the world
7.5 7.9 7.2 o As of 1Q19, Content Revenue and OSI decreased 7.0 7.3 6.5 6.3 6.6 9.0% and 19.6%, respectively, due to a significant drop in advertising sales to government entities
o Total prime time viewership in our flagship network increased year-over-year by 4.6% 1Q'12 1Q'13 1Q'14 1Q'15 1Q'16 1Q'17 1Q'18 1Q´19 o We fully revamped our content offering with more updated formats and storylines and higher production values Ps. in billions Content O.S.I. o We are partnering with leading global content players such as Amazon, Endemol, Mediapro and Sony 2.6 2.6 2.7 2.6 2.8 2.4 2.4 2.3
1Q'12 1Q'13 1Q'14 1Q'15 1Q'16 1Q'17 1Q'18 1Q´19
Source: Grupo Televisa's public filings 10 Highlights 1Q’19
o #1 Morning, afternoon and prime time channel in Mexico o Most watched shows (Mo-Fri): Silvia Pinal Frente a ti, La Rosa de Guadalupe, Mi marido (Ch.2)Las tiene más familia. Estrellas o #1 Comedy Shows: Nosotros los Guapos , La Familia P. Luche, 40 y 20. o #1 Magazine show: Hoy
oChannel 2 and Channel 5 have as much audience as all competing pay TV channels Kids combined oMost successful animated content
o#1 morning newscasts with Despierta con Loret and Al aire con Paola o#1 night newscast with En punto con Denise Maerker News o#1 news channel on a national basis: Foro TV
o19 out of 30 most watched soccer matches in local league. Sports oMost watched night soccer show: La Jugada and NTD. Exclusive sports events
Movies oMost watched movies in FTA TV: El regreso de la nana mágica, and No manches Frida.
Televisa oMost watched channel among women: Tlnovelas Networks o#1 most watched movie networks: De Película 11 DEFINING TRENDS
I. Highlights 1Q’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
37.5 36.2 21.9 22.2 22.0 21.8 39.2 38.5 36.7 33.0 19.3 34.9 34.3 31.9 34.0 28.5 17.5
20.9
2014 2015 2016 2017 2018 LTM 2014 2015 2016 2017 2018 LTM 2014 2015 2016 2017 2018 LTM 2019 2019 2019
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
120.0 OSI Margin 100.0%
101.3 101.9 90.0% Others 100.0 96.3 94.3 80.0% 88.1 24%
80.1 70.0% 32% 80.0 34% 37% 38% 60.0% 39% Cable
60.0 50.0% 25% 25% 40.0% 25% 24% 24% 40.0 27% 39.6% Sky 39.6% 39.2% 38.4% 38.3% 38.3% 30.0%
20.0%
20.0
10.0% Content
0.0 0.0% 48% 41% 38% 34% 37% 35% 2014 2015 2016 2017 2018 LTM 2019 2014 2015 2016 2017 2018 LTM 2019
Our multiple revenue sources Cable has overtaken Content as the have allowed us to post a CAGR most important contributor to of 5.5% 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 o During 1Q’19, advertising Licensing & Syndication Network Subscription Advertising Revenue revenues represented 51% of Advertising Content revenues 2.0 2.4 30% 31% 1.6 2.1 34% 34% 1.2 1.4 2.3 40% 43% 1.3 46% 49% o On a consolidated basis, advertising revenues 0.7 0.7 0.8 1.1 1.2 0.9 1.0 represented 15.7% of 1.2 consolidated revenues in 1Q’19
70% 66% 69% 66% o Televisa continues to explore 60% 57% 54% 51% other ways to monetize the content produced 4.5 4.2 4.6 4.6 4.5 4.1 4.3 3.7
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 USD Millions USD Millions agreement with Univision. 383.6 Total Revenue Adjusted OIBDA 376.1 o The royalty rate is 16.45% of Interest Expense substantially all of Univision’s audiovisual revenue. 2,999 2,858 2,937 324.6 o A step up in the royalty rate of 2,714 2,678 311.1 313.9 Univision came into effect on January and July 2018.
o In addition to our stream of royalties, we hold equity and 1,312 1,333 1,310 warrants of Univision which 1,023 968 upon their exercise would 540 494 represent 36%. 423 391 391
2015 2016 2017 2018 LTM 2015 2016 2017 2018 LTM 2019 2019
Source: Grupo Televisa’s and Univision’s public filings 16 DIVERSIFIED REVENUE STREAMS: Content
We are developing our digital platforms to turn them into a new, solid revenue stream
KPI Q1 2018 Q1 2019 % o During 2018 we became the Some of our key online Chg. number one digital platform destinations: Televisa 10.0m 15.3m 53% among all media companies in Sites’s Users terms of number of users www.televisa.com (comScore). Televisa 212.6m 321m 51% www.lasestrellas.tv Pageviews o The number of views of our content in YouTube, Facebook deportes.televisa.com YouTube 1.0b 2.3b 142% views and Instagram reached more than 4 billion in 1Q19, almost noticieros.televisa.com Facebook 1.1b 1.7b 52% twice of those in 1Q18. views o Instagram 23.5m 43m 83% In our own digital platforms, we views closed 1Q19 with 15.3 million users, 53% more than in 1Q18.
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, data and voice account for 64% of revenue generating units
o Strong gross additions Cable RGU Mix Cable RGU o Voice and data are the main in millions Video Voice Data sources of growth Voice RGUs Data RGUs o Many data customers are Video RGUs
37% 36% upgrading to faster speeds 43% 41% 49% 45% 3.0 3.2 o Growing in high-speed Fiber- 2.1 2.1 to-the-Home users 1.9 26% 21% 25% 21% 22% 4.5 4.6 18% 1.2 3.8 3.1 3.4 2.3
33% 34% 35% 38% 38% 38% 4.1 4.2 4.2 4.4 4.4 3.4
2014 2015 2016 2017 2018 1Q'19 2014 2015 2016 2017 2018 1Q'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 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 Since March, Netflix is included in our izzi TV interface.
o With izzi Kids, six live TV channels and hundreds of hours on video on demand
o Over 197 thousand users as of 1Q19 and available for all video subscribers since April
Different content at the same time, on the TV and other devices
19 DEFINING TRENDS
I. Highlights 1Q’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 in Cable and Sky has increased O.S.I. minus Capex Ps. in billions our ability to generate strong Cable Ps. in billions Sky free cash flow Content 22.8 o The contribution to consolidated 21.5 21.3 OSI, net of capital expenditures,
17.6 has almost doubled since 2016 15.5 16.2 11.5 12.3 13.8 9.2 12.3 10.1
5.1 5.4 6.2 3.8 3.9 4.1 2.4 2.5 2.9 2.1 1.7 1.7
2014 2015 2016 2017 2018 LTM 2014 2015 2016 2017 2018 LTM 2019 2019
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 1.5 o During 2015 and 2016, Televisa accelerated its 1.2 capital investments in Cable segment
0.7 0.7 o It embarked on a heavy-capex phase to upgrade 0.6 0.6 0.5 0.5 0.4 0.4 its network and support growth in RGUs 0.3
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 As a percentage of revenues, Cable capex came Cable OSI net of CAPEX down from 55% in 2016 to 37% in LTM 1Q19 Ps. in billions 3.9 3.0 2.1
2011 2012 2013 2014 2015 2016 2017 2018 LTM -0.4 -0.2 -1.4 2019 -1.5 -4.3 -4.8 Source: Grupo Televisa's public filings. * Organic growth only. Excludes RGU growth from acquisitions 22 GROWING OPERATING CASH FLOW: Sky
Cash flow has increased substantially after Sky net adds 2016 due to lower capital needs RGUs in millions 1.09 1.15 0.96 0.86 o Sky launched VeTV is 2010, a pre-paid basic pay TV 0.74 0.62 0.65 package and launched an aggressive campaign to add new subscribers 0.20 -0.02 -0.27 o Its net adds reached a peak in 2012 installing over 40,000 new services every week, on average -0.36 o In 2016, growth further accelerated with the shut- down of the FTA analog signals
Sky OSI net of CAPEX o Majority of subscriber losses in LTM2019 are Ps. in billions attributed to the post-World Cup effect 6.3 5.9 5.5 o Slower net adds starting in 2017 meant lower CAPEX requirement and more cash flow 3.5 3.7 3.1 2.8 2.7 2.3 o In 2018 Sky launched broadband services through the brand Blue Telecomm, reaching 165 thousand RGUs in 1Q 2019
2011 2012 2013 2014 2015 2016 2017 2018 LTM 2019
Source: Grupo Televisa's public filings 23 DEFINING TRENDS
I. Highlights 1Q’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 Data Subs in Mexico Data Net Adds
Thousand RGUs 2.6% 249 Incumbent 20.2% DSL Televisa Cable Coaxial 39.1%
Fiber 110 36 Other 311 62 145 157 173 38.1% 136 4 62 89 -23 -8 3Q'17 4Q'17 1Q'18 2Q'18 3Q´18 4Q´18 1Q´19
o According to the Mexican regulator, as of the end o In the last seven quarters our Cable Segment has of the third quarter 2018, 7.1 million customers added more than twice the number of data were still on copper (DSL: Digital Subscriber Line) 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 Data services AMX 6.6% 5.8% 24.1% 24.2% Telefónica 21.3% 22.2% 4.0% 20.8% AT&T 16.4% 4.4% Megacable 13.1% Sky 10.5% 53.7% Televisa Cable Otros 15.0%
As of 1Q19 2013 2014 2015 2016 2017 2018 1Q'19 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 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. 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 (June 2018) 27 UNTAPPED OPPORTUNITIES: Broadband Market
There are 33mm homes in the country
of which more than 14.6mm 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 data offering
There is plenty of room for further growth under 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 1Q’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 with a similar amount in dollar-denominated revenue and in dollar-denominated costs and expenses • dollar-denominated revenue US$933 million (2018) • dollar-denominated costs and expenses US$750 million (2018)
A balance sheet hedge with a similar amount in dollar-denominated assets and liabilities (1Q19) • US$3.9b in total debt includes (1) USD debt, (2) capital lease obligations, (3) other notes payable • US$3.4b in total assets includes (1) our stake in Univision; (2) cash and temporary investments
We have a very comfortable debt profile with very long maturities
• Net debt to OSI ratio: around 2.3x as of 1Q19 (LTM OSI) • Closest USD-denominated maturity: US$600 million in 2025 • Closes MXN-denominated maturity: MXN$10 billion in 2020 • Weighted average maturity: USD is 19.5 years, MXN is 7.2 years • 1Q19 USD/MXN breakdown: 59% of debt was in USD, 41% of debt in MXN • 1Q19 weighted average interest rates: in USD 6.05%, in MXN 7.54% • US$211 million in interest expense (2019), all of which is hedged
Source: Grupo Televisa's public filings. 30 OTHER RELEVANT INFORMATION
31 NON-CORE ASSETS: Selling or rationalizing
Contribution to Consolidated Sales Consolidated Under the “Other Businesses” line item 8.53% o Gaming: Casino sites and online lottery business. 2018 Revenues of Ps. 2.7 billion. Exploring sale of asset.
o Radio: (50% equity interest). Owned and affiliated radio stations. 2018 Revenues of Ps. 920 million. Exploring sale of asset. As of LTM 1Q19 o Publishing: The leading Spanish-language magazine publisher in Latin America. 2018 Revenues Ps. 1.3 billion. Recently closed Contribution to unprofitable markets. OSI 2.65%
Unconsolidated
o Imagina: (19% equity interest). Spanish media group Imagina.
Closed sale during 2018. Proceeds of approximately USD 341 million As of LTM 1Q19
o Live entertainment: (40% equity interest). The company organized 3,109 events during 2018. Exploring sale of asset.
Source: Grupo Televisa's public filings 32 SUSTAINABILITY: Many recent milestones
o Televisa included in the 2019 Bloomberg Gender-Equality Index.
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 second time with the “Empresa Socialmente Responsable” award.
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 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]