Capital Expenditures-To-Sales Ratio from 27.6% in 2016 to 19.3% in LTM 1Q19
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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 quarter 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 1Q’19 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.