GRUPO TELEVISA, S.A.

TLEVISA CPO
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Grupo Televisa B : Investor Presentation Website Fourth Quarter 2019

02/21/2020 | 03:37am

Investor

Presentation

Fourth Quarter 2019

Televisaat a Glance

CABLE

CONTENT

A leading cable

Advertising

operator

Four broadcast channels

in Mexico

in Mexico City and

affiliated stations

Video

throughout the country

4.3millon RGUs

Network Subscription

Broadband

25 pay-tv networks

4.7millon RGUs

Licensing & Syndication

Voice

Univision royalties, other

licensing fees, and exports

3.6millon RGUs

to over 70 countries

SKY

A leading DTH system in Mexico and broadband provider, also operating in Central America and the Dominican Republic

Video:7.4 millon RGUs

Broadband:386 thousand RGUs

RGUs: Revenue Generating Units. DTH: Direct to Home

2019 Share of Revenue and OSI*

31%

43%

39%

33%OSI*

OSI*

Cable

Content

22%

OSI*

20%

Sky

*Operating segment income (OSI) is defined as operating income before corporate expenses, depreciation and amortization, and other expense, net. For a reconciliation of total operating segment income with consolidated operating income, see Note 25 to our year-end consolidated financial statements.

2

2019Operating Highlights

The transformation of Televisa continued in 2019 with many milestones

CABLE

SKY

CONTENT

  • Double digit growth in Revenue and Operating Segment Income
  • Reached12.7 millionRevenue Generating Units (RGUs)
  • Solid operating metrics withlow churn
  • Positioned IZZI as the premieraggregator of OTToffers
  • Resumedgrowth in videoRGUs with positive net adds each of the last three quarters
  • Continued buildingscale in the broadbandbusiness
  • Launched new,innovative formatswith great success
  • Reassigned resources and increasedproduction values
  • Achieved strongviewership levels
  • LaunchedTUDN, asports JV with Univision

3

2019Consolidated Financial Results

Steady Revenue and OSI1growth, declining capital intensity

Revenue

Ps. in billions

101.3 101.5

96.3 94.3

88.1

80.1

OSI1

Ps. in billions

38.9

40.3

41.0

37.5

35.7

32.3

non-recurring licensing of certain rights of the World Cup

2014

2015

2016

2017

2018

2019

2014

2015

2016

2017

2018

2019

  • Consolidatedrevenue growth of 3.0% andOSI1growth of 5.4%*
  • Ongoingfinancial discipline with cost and expensesdeclining by Ps.579 million
  • Strong balance sheet: Net Debt to OSI1of 2.3x and averagematurity of 16.9 years

4

1Operating segment income (OSI) is defined as operating income before corporate expenses, depreciation and amortization, and other expense.

*Excludes the non-recurring licensing of certain rights of the World Cup

4Q'19Consolidated Financial Results

Fastest pace of growth in Operating Segment Income (OSI1) in five quarters

Revenue

OSI1

Ps. in billions

Ps. in billions

27.3

28.0

26.7

24.0

25.0

26.0

10.9

10.4

11.1

9.9

9.9

10.2

4Q'14 4Q'15 4Q'16 4Q'17 4Q´18 4Q´19

4Q'14 4Q'15 4Q'16 4Q'17 4Q´18 4Q´19

  • Revenue and OSI1growth of 4.7%and 6.6%,respectively
  • Stabilization ofad salesduring the quarter, and US$101 millionin Univision royalties
  • Cable added115 thd. RGUs, a sequential improvement vs 3Q'19
  • Sky added67 thd. broadband RGUs and17 thd. video RGUs

5

1Operating segment income (OSI) is defined as operating income before corporate expenses, depreciation and amortization, and other expense.

Cable:12.7 million customer relationships

Broadband and voice continue to be the main drivers of growth

Total RGUs

Millions

12.7

11.8

9.7 10.1

9.0

6.9

2014 2015 2016 2017 2018 2019

RGU Mix

18%

29%

33%

37%

49%

34%

2014 2015 2016 2017 2018 2019

  • Added811 thd. RGUs
  • Broadbandmarket share reached24.4%
  • Byyear-end, reached 15.3 millionhomes passed
  • A telecom network of140 thd. kilometers, 32% is fiber

Video

Data

Voice

Video

Data

Voice

6

Cable:Continues to grow at a steady pace

After heavy investments in infrastructure, Operating Cash Flow (OCF2) keeps expanding

Revenue

OSI1

OCF2

Ps. in billions

Ps. In billions

Ps. in billions

41.7

5.3

17.8

36.2

3.9

15.3

33.0

3.0

31.9

14.0

28.5

13.2

11.4

20.9

7.9

-1.4

-4.8

-4.3

2014

2015

2016

2017

2018

2019

2014

2015

2016

2017

2018

2019

2014 2015 2016 2017 2018 2019

  • In 2019,double digit growthin Revenue and in OSI1of 15.1%and 16.3%,respectively
  • Organically, excluding Axtel acquisition in December 2018, OSI1expanded by 11.4%
  • Operating Cash Flow (OCF2) reached Ps.5.3 billion, ay-o-ygrowth of 76.6%

7

1Operating segment income (OSI) is defined as operating income before corporate expenses, depreciation and amortization, and other expense.

2Operating Cash Flow (OCF) is defined as Operating Segment Income minus capital expenditures in properties, plant and equipment

Cable:2020 Goals

With our extensive infrastructure, we will continue to focus on:

CABLE

  • Growing ourshare of broadbandfurther
  • Resuminggrowth in videosubscribers
  • Strengthening position asaggregator of OTToffers
  • ExpandingOperating Cash Flow1

8

1Operating Cash Flow is defined as Operating Segment Income minus capital expenditures in properties, plant and equipment.

Sky:Over 7 million customers

Broadband has become an attractive ad-on to many pay TV households

Total

Broadband

RGUs

RGUs

Millions

Thousands

386

  • Byyear-end 2019, over

8.0

8.0

7.7

319

7.8

7.3

6.6

238

165

92

  • 7.8 million combinedvideo andbroadband RGUs

  • Added294 thousand broadband RGUs during the year

2014

2015

2016

2017

2018

2019

4Q´18

1Q´19

2Q´19

3Q´19

4Q´19

9

Sky:Transforming it into a telecom operator

Pressure in margins has been necessary to build scale in broadband

Revenue

OSI1

OCF2

Ps. in billions

Ps. in billions

Ps. in billions

21.9

22.2

22.0

21.3

19.3

9.9

10.1

9.8

17.5

6.3

9.0

9.1

5.9

8.2

5.3

3.5

3.7

3.1

2014

2015

2016

2017

2018

2019

2014

2015

2016

2017

2018

2019

2014 2015 2016 2017 2018 2019

  • Operating Cash Flow (OCF2) reached Ps.5.3 billion
  • Capital expenditureshave been strong to support foray into broadband

10

1Operating segment income (OSI) is defined as operating income before corporate expenses, depreciation and amortization, and other expense.

2Operating Cash Flow (OCF) is defined as Operating Segment Income minus capital expenditures in properties, plant and equipment

Sky:2020 Goals

With its more than 7 million pay-tv customers, Sky will continue to build a telecom presence:

SKY

  • Offeringattractive bundles
  • Launching packages withfaster speeds
  • Targetingnew marketswithin its footprint
  • Launchingnew broadband services

11

Content Division:An unmatched audience reach

We produce the content that people choose to watch on broadcast TV

Network

Program

Ratings

% of

(mm)

Pop.

Televisa

¿Quien es la mascara?

8,219

6.5%

Televisa

Silvia Pinal frente a ti

7,484

5.9%

Televisa

Mi marido tiene más familia

7,195

5.7%

Televisa

La Voz Kids

6,810

5.4%

Televisa

Amar a muerte

6,273

5.0%

Televisa

La Rosa de Guadalupe

6,253

4.9%

Televisa

La Usurpadora

6,225

4.9%

Televisa

Una Familia de Diez 3

6,085

4.8%

Televisa

Una Familia de Diez 2

6,055

4.8%

Televisa

Pequeños Gigantes

5,900

4.7%

Network

Program

Ratings

% of

(mm)

Pop.

CBS

Big Bang Theory

13,381

4.1%

CBS

NCIS

12,663

3.8%

NBC

This Is Us

12,502

3.8%

NBC

Agt Champions

12,394

3.8%

NBC

America's Got Talent

11,666

3.5%

NBC

Chicago Fire

11,536

3.5%

NBC

Chicago Med

11,174

3.4%

NBC

Chicago Pd

11,061

3.4%

NBC

Manifest

10,913

3.3%

FOX

Masked Singer

10,676

3.2%

  • Broadcast is akey form of entertainmentin Mexico, above the U.S. as a % of population
  • In 2019, thetop 10 programsin Mexico's broadcast TV were produced and transmitted by us
  • These included threecomedies,three game shows, three dramas,and one bio-epic
  • Our top production reached60% more viewers* than the top production in the U.S. in 2019

12Source for Mexico: National projection based on Nielsen IBOPE's audience measurement of the 28 largest cities of Mexico. Sports not included in ranking. *As a percentage of total population. Source for US: Nielsen US national sample.

Content:Multiple windows to choose from

Televisa is a relevant participant in every platform

Four Broadcast

Networks in Mexico

Exports

(70+ countries)

25 Pay TV

Networks

OTT &

Digital

  • We are in theunique positionto choose how and where we monetize our content
  • Broadcast Television continues to bethe most effectiveway to do so
  • We are expanding our expertise inDigital and OTTand gradually building scale

13

Content Division:A production powerhouse

After a multi-year restructuring phase, business is stabilizing

Revenue

OSI1

OCF2

Ps. in billions

Ps. in billions

Ps. in billions

39.23

34.9

36.7

34.3

34.0

34.8

13.1

15.5

12.1

11.9

13.13

14.7

14.93

10.8

10.6

14.6

12.8

12.6

2014

2015

2016

2017

2018

2019

2014

2015

2016

2017

2018

2019

2014

2015

2016

2017

2018

2019

  • In 2019, revenue was down4.6%mainly due to drop in government advertising
  • Core private sector ad revenuewas down 1.8% due to macro uncertainty in 1H'19
  • Strong performance of our content in Univision resulted inU.S.$389.1 millionin Royalties
  • Operating Cash Flow (OCF2,4) was approximately in line with 2018

1Operating segment income (OSI) is defined as operating income before corporate expenses, depreciation and amortization, and other expense.

142Operating Cash Flow (OCF) is defined as Operating Segment Income minus capital expenditures in properties, plant and equipment 3Includes the non-recurring licensing of certain rights of the World Cup in Latin America in 2018

4Excluding the 2018 World Cup licensing revenue and the 2019 drop in government advertising

Content:2020 Goals

Televisa will continue to focus on strengthening its content business

CONTENT

  • Increasing thevolume and qualityof our original content
  • Ongoinginnovationin our formats and storylines
  • Striving for strong ratings acrossall genres
  • Expanding the ways in which wemonetize our content

15

StrongBalance Sheet

Weighted average

maturity:

USD is 20.6years

Ps is 8.9years

dollar-denominated costs and expenses

US$750 million*

dollar-denominated revenue

US$933 million*

*Full Year 2018

Closest USD maturity

Closest peso maturity

US$600

Ps.10,000

million

million

in

in

2025

2024

66%of debt in USD

34%of debt in Ps

Net debt to

OSI ratio:

2.3 times

As of FY 2019, except otherwise

16

*Full Year 2018

indicated

Sustainability:A key component in our strategy

Our many sustainability efforts continue to be recognized around the world

2020 FTSE4Good Emerging Index

2020 FTSE4Good Emerging Latin America Index

2020 FTSE4Good BIVA Index

2020 BloombergGender-Equality Index 1

2020 BMV/S&P IPC Sustentable (Sustainability Index)

2019 Dow Jones Sustainability Emerging MarketsIndex 2

2019 Dow Jones Sustainability MILA Pacific AllianceIndex

2019 United Nations (UN) Global Compact3

2019Environmental Quality Certificate4

2019 Recertified with Norm ISO 14001:20155

2019Socially Responsible Company Award6

17

1. One of only five Mexican companies. 2. One of only three Mexican companies. 3. The world's largest corporate sustainability initiative. 4. Issued by federal

environmental entity for certain of our facilities. 5. Issued by a third party verification unit. 6. Recognized for the second time for our social responsibility programs.

Televisa:A strong foundation

Focused on building shareholder value

Fully integratedmedia andtelecommunications

Unique market presencein its core businesses

Diversified revenue base

Growingcash flow

Mexico's second largesttelecom network

Largest producerof Spanish-language content

Long standing commitment to sustainability

Investment grade

One of the most liquidMexican companies

Publicly tradedin NYSE since '93 andin Mexico since '91

Our priorities:

Innovationacross all our

operations

Constant

transformation of our

business model

Long term strategic

positioning

Focus on Cash Flow

generation

18

Disclaimer

This presentation 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. This presentation may also contain non-IFRS financial measures. Please see description of these non-IFRS financial measures in this presentation and in the Company's press release dated February 20, 2020, announcing the Company's fourth quarter and full year 2019 results.

Investor Relations

www.televisair.com

+ (52) 55 5261 2445

Av. Vasco de Quiroga 2000, A4.

Col. Santa Fe

19CP. 01210 Mexico City

Disclaimer

Grupo Televisa SAB published this content on 20 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 February 2020 08:36:09 UTC

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