Capital Expenditures-To-Sales Ratio from 27.6% in 2016 to 20.0% in LTM 2Q19
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Investor Investor Presentation Presentation First quarter 2019 As of Second 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 2Q19 CONTENT CABLE A leading cable operator in Mexico Advertising Four broadcast channels Video: 4.4 million RGUs * Video in Mexico City and Broadband: 4.6 million RGUs affiliated stations Voice: 3.4 million RGUs throughout the country * Revenue generating units Voz Network Subscription 37% 26 pay-tv networks and 34% 74 feeds in Mexico and CABLE globally CONTENT Licensing & Syndication WiFi SKY Univision royalties, other licensing fees, and exports to over 75 21% CONTENT countries SKY SKY A leading DTH system in Mexico and broadband provider, also operating in Central America and the Dominican Republic Video: 7.4 million RGUs Broadband: 0.2 million RGUs Source: Grupo Televisa's public filings 3 SNAPSHOT: Highlights o Close to Ps.100 billion in consolidated revenue o Consolidated Operating Segment Income (“OSI”) of Ps.40 billion o Investment grade. Average debt maturity over 16 years. Net-debt-to-OSI of 2.3x o Declining Capital Expenditures-to-Sales ratio from 27.6% in 2016 to 20.0% in LTM 2Q19 o 20 mm revenue generating units contributing with 65.0% of Consolidated OSI in LTM 2Q19 o Fastest growing broadband provider in the country in terms of new customers o Content production powerhouse. During the second quarter the top 10 watched 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 2Q’19 II. Diversified revenue streams III. Growing operating cash flow IV. Untapped opportunities in growth markets V. Strong balance sheet 5 Highlights 2Q’19 Consolidated o Consolidated Sales and Consolidated Operating Segment Income, excluding the non-recurring licensing of certain rights of the World Cup in Latin America in 2018 (the “non-recurring licensing revenue”) , dropped 2.7% and 0.1%, respectively. Cable o Continued its double-digit pace of growth in Sales and in Operating Segment Income of 15.7% and 20.1%, respectively, reaching a record margin of 43.8%. o Reached a total of 12.4 million Revenue Generating Units, after the addition of 286 thousand RGUs in all three services during the quarter. Sky o Sky resumed growth in video RGUs, gaining seven thousand during the quarter. o Broadband RGUs reached 238 thousand after the addition of 73 thousand during the quarter. o Revenue and Operating Segment Income were negatively impacted by the difficult year-over-year comparison given Sky benefited from the transmission of all 64 matches of the World Cup. Content o Ongoing leadership with our content offer airing the top 10 programs in Mexican Television. o Content results were impacted primarily by a difficult comparison to last year as a result of the 2018 World Cup, by lower government advertising revenue, and by a decline of approximately 5% in private sector core advertising revenue. Source: Grupo Televisa's public filings 6 Highlights 2Q’19 Consolidated Revenue Consolidated OSI Non-recurring Ps. in billions Ps. in billions licensing effect 0.8 1.7 9.9 9.9 25.0 9.7 24.3 9.4 23.5 23.0 8.5 21.0 8.0 19.3 7.7 18.1 7.1 17.0 2Q'12 2Q'13 2Q'14 2Q'15 2Q'16 2Q'17 2Q'18 2Q'19 2Q'12 2Q'13 2Q'14 2Q'15 2Q'16 2Q'17 2Q'18 2Q'19 Consolidated Sales, excluding non- Consolidated Operating Segment recurring licensing revenue, dropped Income, excluding non-recurring licensing 2.7%. revenue, decreased 0.1%. Source: Grupo Televisa's public filings 7 Highlights 2Q’19 Ps. in billions Cable Revenue o Strong top line growth: 14.6% CAGR from 2013 10.2 o OSI margins have expanded rapidly, reaching 42.9% 8.8 in LTM 2Q’19, up from 35.8% in 2013 7.8 8.0 6.9 o During 2Q’19 total net adds were 286 thousand, 4.8 3.9 4.2 Year-over-year growth in RGUs was 16.1% Net Adds ('000) 3Q18 4Q18 1Q19 2Q19 Video -35 6 -9 11 2Q'12 2Q'13 2Q'14 2Q'15 2Q'16 2Q'17 2Q'18 2Q´19 Broadband 62 81 89 73 Telephony 247 229 205 202 RGU Net Adds 274 316 285 286 Cable O.S.I. Ps. in billions o After an important decline in capex, the Cable 4.5 segment is now free cash flow positive 3.7 3.4 3.3 o 2.8 Over 14.8 million homes passed, of which more than 90% can receive broadband speeds of 100 1.8 Mbps 1.5 1.6 o Our Enterprise business has posted four consecutive quarters of growth, with Revenues 2Q'12 2Q'13 2Q'14 2Q'15 2Q'16 2Q'17 2Q'18 2Q´19 expanding at a rate of 8.7% in 2Q’19. Source: Grupo Televisa's public filings 8 Highlights 2Q’19 o As of 2Q’19, more than 7.6 million RGUs in Mexico Sky Revenue and Central America Ps. in billions 5.6 5.6 5.7 5.3 o Resuming growth in video subscribers, adding 4.7 4.3 more than 7 thousand RGUs 4.0 3.5 o Revenue reached Ps.21.5 billion in LTM 2Q´19, contributing with 20.5% of consolidated revenue o OSI Margins have remained solid for more than 10 years, in spite of strong competition 2Q'12 2Q'13 2Q'14 2Q'15 2Q'16 2Q'17 2Q'18 2Q´19 o In 2018 we launched broadband services under the Blue Telecomm brand. In 2Q’19 we added 73 thousand broadband RGUs, reaching a total of 238 Ps. in billions Sky O.S.I. thousand 2.7 • Fixed broadband through incumbent’s network 2.5 2.5 2.3 2.3 (3 to 200 Mbps – subject to incumbent’s 2.1 1.9 technical capability in a given location) 1.7 • Fixed wireless broadband through Red Compartida and AT&T’s wireless network (5 and 10 Mbps) 2Q'12 2Q'13 2Q'14 2Q'15 2Q'16 2Q'17 2Q'18 2Q´19 Source: Grupo Televisa's public filings 9 Highlights 2Q’19 Content Revenue o We are the leading producer of Spanish language Ps. in billions content in the world Non-recurring licensing effect 8.6 8.8 1.7 o As of 2Q19, excluding the non-recurring licensing 7.8 8.2 7.9 8.1 8.1 9.3 revenue, Content Revenue and OSI decreased 13.0% and 15.8%, respectively o Advertising sales decreased by 17.0%. Content results were impacted primarily by a difficult comparisson to last year as a result of the 2018 2Q'12 2Q'13 2Q'14 2Q'15 2Q'16 2Q'17 2Q'18 2Q'19 World Cup, by lower government advertising revenue, and by a decline of approximately 5% in private sector core advertising revenue Ps. in billions Content O.S.I Non-recurring licensing o effect We continue updating our content offering: 4.1 4.0 3.8 3.7 3.7 3.4 0.8 o We are remaking some of Televisa’s most iconic 3.5 2.9 dramas with updated formats o We will launch The Masked Singer, one of the most popular entertainment shows o We signed a co-production agreement with Netflix 2Q'12 2Q'13 2Q'14 2Q'15 2Q'16 2Q'17 2Q'18 2Q'19 Source: Grupo Televisa's public filings 10 Highlights 2Q’19 o #1 Morning, afternoon and prime time channel in Mexico o Most watched shows (Mo-Fri): La Rosa de Guadalupe, Ringo La Pelea de su Vida y Por (Ch.2)Las Amar sin Ley 2 Estrellas o #1 Comedy Shows: Nosotros los Guapos o #1 Magazine show: Hoy oTelevisa’s Channel 2 and Channel 5 have as much audience as all competing pay TV Kids channels combined oMost successful animated content vs Air and Pay TV Channels o#1 morning newscasts with Despierta con Loret and Al aire con Paola News o#1 night newscast with En punto con Denise Maerker o8 out of 10 most watched soccer matches in local league. Sports oMost watched night soccer show: Noticiero Televisa Deportes. Exclusive sports events Movies oMost watched movies in FTA TV: Chiquito pero peligroso, El regreso de la nana mágica, and Miss Peregrine y los niños peculiares. oMost watched channel among women: Tlnovelas Televisa o#1 most watched movie network: De Película Networks o#1 most watched comedy channel: Distrito Comedia 11 DEFINING TRENDS I.