This report has been translated from its original language. 2016 SUSTAINABILITY REPORT 2016 SUSTAINABILITY REPORT UNUNIITETEDD,, WEWE AADDDD MMOORREE VAVALLUUEE 2016 SUSTAINABILITY REPORT REPORT PARAMETERS Conducting a transparent operation and maintaining All opinions, suggestions, enquiries or comments related fluid communications with all our stakeholders’ groups to this report are highly welcomed and may be addressed is paramount to DIRECTV Peru. to Rolando Dávila, Corporate Social Responsibility coordinator, at the following e-mail address: [email protected]. That is the reason behind our decision to issue this first sustainability report, which allows us to account for our management in the social, financial and environmental arenas. The information contained herein is laid out in accordance with the essential “conformance” to the GRI (Global Reporting Initiative) G4 guidelines and covers the January 1st-December 31st, 2016 period. It was drafted by DIRECTV Peru’s Corporate Social Responsibility area in cooperation with all of the company’s areas, which contributed in the surveying of information. In light of the thoroughness and completeness of the information gathered for and contained in this report and the high level of commitment on the side of the Company about its truthfulness, the external verification of this report is dispensed with. 2016 SUSTAINABILITY REPORT LETTER FROM OUR CHAIRMAN AND CEO Since our start, AT&T has been about one thing: harnessing fuel through smart traffic management. Our 2025 goal: to the power of our network to change lives and improve the enable carbon savings for our customers that are 10x the world. And just as our network technology has gotten better footprint of our operations. over the years, so has our ability to address some of society’s toughest challenges. Finally, as one of the world’s largest telecommunications companies, we want people to use our technology responsibly. A great example is education where technology is radically Over almost 8 years, our It Can Wait® program has signed up changing how students learn and teachers teach. In the millions of U.S. drivers who have pledged to keep their eyes on U.S., AT&T Aspire, our $400 million education initiative, is the road, not on their phones.And now we’re expanding helping prepare more young people to succeed in school, on ourinitiative to Mexico. the job and in life. We’re working with external organizations —like Udacity, Coursera and numerous universities — to None of this would be possible without our employees, who create opportunities for specialized online degrees for are as dedicated to their communities as they are to their certifications. And in Latin America, our ESCUELA+ jobs. In 2016, AT&T employees and retirees volunteered initiativehas connected teachers and students in more than more than 5.4 million hours to make their communities better 7,500 schools across 8 countries to a world of educational places to live and work. discovery. Leveraging technology to build a better tomorrow is We’re even using these same tools to help our employees something we take very seriously. I invite you to learn more gain the high-tech skills they need as we become a more about our efforts in the following pages. software software-centric company. Technology can also speed the transition to a low-carbon economy – from networks that use less energy and water to Randall Stephenson better ways to conserve Chairman and Chief Executive Officer WE ARE COMMITTED 2016 SUSTAINABILITY REPORT LETTER FROM DIRECTV PERU’S MARKET DIRECTOR Aware of our role as a leading pay-TV Company, one of we organized 2 touring cinema screenings in the employees and their over 1869 hours of volunteering our main concerns, in addition to offering our framework of the Cinema+ program. Cerro Candela de work in the different communities to turn them into a subscribers the best-in-class entertainment experience, Cañete and Carabayllo were the two locations more pleasant place to live. is to contribute value to the communities where we selected, where over 60 volunteers worked for over provide our service. We are committed to tackling the 510 hours to make the cinema a massive and non- Lastly, we are encouraged by the fact that an greatest challenges currently facing our societies by exclusive experience. adequate use of technology for the benefit of the most means of our social responsibility program: DIRECTV vulnerable communities will allow us to forge a Generation. Likewise, thanks to the ESCUELA+ initiative, we have brighter future. contributed, complemented and enrichened the We are proud of being able to support communal curricular content of the country’s primary and volunteering activities in disadvantaged areas. In 2016, secondary schools through DIRECTV’s satellite Diego Benavides based on our “Piedra, Papel y Tijera” program, we technology and through the contents provided by our Market Director - DIRECTV Peru succeeding in conducting 3 impactful actions thanks to partners: Discovery at school, National Geographic, the time and effort donated by our volunteers, whose Takeoff Media and Fundación Torneos. That is how, over 4050 hours of work helped refurbish the during 2016, we managed to implement the program in “Bienaventuranzas” home (Tablada Lurin), the “Gotitas 267 schools across the country and to provide program- de Jesús” kindergarten (Porvenir Trujillo), and the related training to 591 teachers. “Ángeles de Naranjal” school (Carabayllo, Lima). Our 150 volunteers worked to plant gardens, do interior and Our endeavors throughout this year have earned us an exterior painting of facilities and build and equip increased market share, which has now climbed to classrooms. 14.2%. Moreover, we are highly proud of having in average donated 100000 US dollars through Also during 2016, aimed to expanding our DIRECTV volunteering and charity programs. Of course, we do service experience to different communities across the acknowledge and commend all of our employees, region and bringing culture and movies closer to people, because their contribution has been paramount to these accomplishments. We should also highlight that none of them would have been possible had it not been for the commitment and sense of belonging of our 4 WE ARE COMMITTED 2016 SUSTAINABILITY REPORT LETTER FROM DIRECTV’s SOUTHERN CONE DIRECTOR Our goal at DIRECTV is always to stay closer to our In 2016, in the framework of the Piedra, Papel, Tijera customers, to our teams and to each of our program, we became engaged in 3 highly impactful At DIRECTV we endeavor daily to ensure that all stakeholders groups which turn our company into a actions resulting from the generous donation of our Peruvian inhabitants have access to a television professional, transparent and genuine place to work. 267 volunteers’ time, who devoted over 4050 hours to connection, which thus results in the fulfillment of our We also aim at offering top entertainment in every part the refurbishment of one shelter home and two ongoing innovation and quality commitment. of our country. What is this due to? We want to offer all schools. Manuel Abelleyra Peruvian inhabitants a TV connection and access to President of DIRECTV Southern Region entertainment. In order to provide support to students in their early steps as producers, our endorsement for the university 2016 was equal to times of transition as we began filmmaking is displayed through the award of our operating regionally and our ultimate goal was to Cinema Plus grant, whose fourth edition is underway. achieve the integration of Argentina, Chile, Peru and The three Latin American winners stand good chances Uruguay into only one team. And we are on the right of pursuing filmmaking studies at one of the world´s track since we have focused on and enhanced business most prestigious institutions: the University of Southern results without ever neglecting our company´s major California Filmmaking Arts School where filmmaking asset: each of its talents. studies featured the presence of renowned film directors like George Lucas, Ron Howard and Robert I should point out that, aimed to enhancing our customer Zemeckis service capabilities and consolidating our leadership in the pay-TV sector, a new satellite intended to provide Last but not least, I would like to share with you the outstanding service quality to the region was launched outcomes of our “Escuela+” educational program, during 2016. designed for and implemented in different primary and secondary education institutions across Latin America, In this amazing team we are part of, we cherish both which complements each country’s educational content, training and engagement in different actions. That is thereby helping bridge the digital divide. During 2016, why we implement ongoing plans and programs this initiative was extended in Peru to include 267 new designed to foster our employees’ development. schools countrywide and to train other 591 teachers. 5 01 02 03 04 05 06 07 What is DIRECTV? 08 A 360º management 18 Our products 27 Dynamism and diversity The chain value 40 DIRECTV Peru in our We are committed to the for the sake of growth 31 community 45 future 51 Our essence 10 Strengthening ties with Our suppliers our stakeholders groups Product-related Talent recruitment 33 42 Enabling the enablers 46 Responsible resource At the forefront of 19 accountability and ethics consumption 52 technology 11 28 Change leaders 43 Involvement in public Development and mobility Helping others changes Control of Business integrity and affairs 20 Tracking satisfaction 34 our lives 47 greenhouse gases ethics 15 levels 29 emissions 54 Accountability Ongoing education 35 DIRECTV Generation 48 and transparency 21 Efficient resource management 56 Benefits and flexibility 37 Occupational health and 08 safety 38 Exhibit 58 SUMMARY We are committed WE ARE COMMITTED 2016 SUSTAINABILITY REPORT WHAT IS DIRECTV? We stand as the largest satellite pay-TV operator provide our customers the industry’s best-in-class worldwide, providing coverage to 25.3 million users in entertainement experience.