Investor Presentation

Transcription

1 Investor Presentation Third Quarter 2014

2 Forward looking statements This presentation contains statements that constitute forward looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of Forward looking statements include statements regarding the current intent, belief or expectations of our officers or management with respect to future developments, including such important matters as (1) our asset growth and financing plans, (2) trends affecting our financial condition or results of operations, (3) the impact of competition and regulations, (4) projected capital expenditures and (5) liquidity. Forward looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those described in forward looking statements included in this presentation as a result of various factors. These factors, many of which are beyond our control, include the actions of competitors, future global economic conditions, market conditions, changes in interest rates and foreign exchange rates, changes in legislation or regulations applicable to our business, operating and financial risks, the outcome of legal proceedings and the factors discussed under Risk Factors in our annual report on Form 20 F for the year ended December 31, The results in this presentation appear as they were originally reported in our financial statements.

3 Six Key Trends Strategic Impact Opportunities Ahead

4 Six Key Trends that are shaping our business I. Stable Long Term Advertising Revenue Base II. III. IV. Growing Univision Royalties Broader Reach of our Pay TV Networks Growing Sky Video Households V. Expanding Data to Video Penetration VI. Growing Cable RGUs

5 I. Stable Long Term Advertising Revenue in spite of many challenges MX$ billions : Mexican GDP down 6% 2014: Regulation on advertising highcaloric foods and beverages : Ban on sale of political ads 2011: Lost Carso (4% of revenues) LTM 3Q'14 Starting in 2012, we started accounting for Broadcasting Revenue under Advertising Revenues which also includes advertising on our pay TV channels. Source: Grupo Televisa public filings 5

6 II. Growing Univision Royalties A growing rate on an expanding base $315 $225 $248 $273 US$ millions $105 $110 $127 $138 $147 $143 $ E PLA: Programming License Agreement between Televisa and Univision Source: Grupo Televisa public filings 6

7 III. Broader Reach of Our Pay TV Nets as the number of channels available grows Millions of RGUs Number of Channels Sept RGUs Channels 10 Source: Grupo Televisa public filings 7

8 III. Broader Reach of Our Pay TV Nets and the appeal of the channels grows Millions of RGUs Avg. Persons / Day (thousands)* Sept RGUs Rating 0 Source: Grupo Televisa public filings * Average viewers all day from Monday to Sunday in Mexico per day per channel as computed by Nielsen IBOPE for 15 of our pay TV networks 8

9 IV. Growing Sky Video Households an untapped potential for premium offerings % % % % Subs (millions) % % 48.1% 48.2% % 45.1% 46.4% 45.3% 45.6% 47.4% 60.0% Sky OSI Margin 50.0% 40.0% 30.0% 20.0% % Sept % Source: Grupo Televisa public filings 9

10 V. Expanding Data to Video Penetration vs close to 100% in the U.S. 80.0% 70.0% 66.8% 64.3% 60.0% 56.6% 50.0% 40.0% 30.0% 22.8% 28.8% 31.8% 36.6% 41.0% 48.9% 20.0% 10.0% 11.2% 0.0% Sept. * 2014 Data/Video Penetration Source: Grupo Televisa public filings * Includes Cablecom which had as of September 30, 2014 a data to video penetration of only 31.5% 10

11 VI. Growing Cable RGUs and attractive OSI marginoutlook % % 80.0% 6.0 RGUs (millions) % % % % 32.2% 33.1% % % % 36.6% 70.0% OSI Margin 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% Sept RGUs Telecom OSI Margin * 0.0% Source: Grupo Televisa public filings * Includes Cablecom, LTM for OSI Margin 11

12 Six Key Trends Strategic Impact Opportunities Ahead

13 A. Ongoing Reduction of Dependence on Cyclical Ad Revenues 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% LTM 3Q'14 Advertising Network Sub. Licensing Sky Cable and Telecom Pub. & Other Source: Grupo Televisa public filings 13

14 B. Conservative Balance Sheet Fire power for further growth LTM 3Q'14 Net Debt / EBITDA Ratio Source: Grupo Televisa public filings 14

15 C. Positive impact on Content O.S.I. by expanding the sources of content revenue MX$ billions LTM Content OSI 3Q'14 Source: Grupo Televisa public filings For the years 2006 to 2010, Content O.S.I. is the sum of TV. Broadcasting, Pay TV Networks, and Programming Exports O.S.I. 15

16 D. Expanding O.S.I. in Sky MX$ billions LTM Sky OSI 3Q'14 Source: Grupo Televisa public filings 16

17 E. Expanding O.S.I. in Cable MX$ billions LTM Telecom OSI 3Q'14 * Source: Grupo Televisa public filings * Includes the operation of Cablecom for the month of September

18 F. Expanding Consolidated O.S.I MX$ billions LTM 3Q'14* Content OSI Sky OSI Telecom OSI Other OSI Source: Grupo Televisa public filings * Includes the operation of Cablecom for the month of September

19 Six Key Trends Strategic Impact Opportunities Ahead

20 * A Changing Landscape More competition, and more opportunities Content Auction of broadcast spectrum OTT TDT Telecom AMX breakup NIHD AT&T AMX preponderance Cable consolidation 20

21 * Low Ad Spend as % of Mexico GDP 1.80% 1.60% Ad Revenues relative to GDP 1.63% 1.61% 1.40% 1.20% 1.14% 1.00% 1.02% 0.97% 0.94% 0.80% 0.84% 0.78% 0.68% 0.60% 0.58% 0.48% 0.40% 0.20% 0.00% S. Africa Panama Brazil USA Belgium Argentina Japan UK Germany Chile Mexico Source: Zenith Ad Spend report and J.P. Morgan 21

22 * Attractive Licensing Deal with Univision and a soon to improve royalty rate Higher Royalty Rate 2011 From 9.36% to 11.91% Plus 2.02% of revenues above 10 revenues (US$1.65 billion) 36% increase Additional Step up 2018 From 11.91% to 16.22% At no additional expense to UVN PLA Expiration The later of 2025 or 90 months following a Televisa sell down E Source: Grupo Televisa 22 22

23 * Univision Potential Transaction and Televisa s relevant share in Univision Revenues US$ million LTM Television 2,449 Radio 303 Digital 127 Consolidated 2,880 YoY growth 3.6% OIBDA US$ million Television 1,082 Radio 97 Digital 35 Consolidated 1,214 Margin 42.1% Controlling shareholders Haim Saban Madison Dearborn Partners Providence Equity Partners Texas Pacific Group Thomas H. Lee Net Debt $9.3 billion Net Debt / EBITDA 7.7x Source: Univision 23

24 * Growing Pay TV Penetration in Mexico but still only close to 50% of homes 60.0% 50.0% 45.0% 48.0% 51.1% 40.0% 35.7% 39.9% 30.0% 21.7% 23.5% 24.8% 26.2% 29.2% 20.0% 10.0% 0.0% Sept Pay TV Penetration Source: INEGI, Banxico, SHCP, financial reports by the different operators 24

25 * Investing in Telecom Infrastructure ahead of demand $2,000 2,000 $1,800 $1,600 $1,400 $1,200 US$ millions $1,000 $ ,571 1,588 1,615 1,571 1,230 Net Additions (thousands) 1,500 1, $600 $400 $200 $0 $1,244 $1,158 $900 $902 $881 $490 $499 $248 $299 $ LTM 3Q14 Capex (1) (2) Net Additions ,000 (1) During first quarter 2010, we booked US$147mm related to the new satellite IS 16, however US$111mm were payable in (2) Excludes Cablecom 25

26 * Investing in Telecom Infrastructure Mexico s Second Largest San Diego, CA Tijuana Ensenada Nogales, AZ Nogales Cd Juárez Guaymas Cd. Obregon Navojoa Los Mochis Guamuchil Culiacán El Paso, TX Durango Torreón Piedras Negras Nuevo Laredo Saltillo Linares Laredo, TX Reynosa Cd. Victoria Dallas, TX San Antonio, TX Taylor Mc Allen, TX Matamoros TVI cablecom CFE Fiber Network Mazatlán Tepic Guadalajara Celaya In 2010, Televisa* received contract for the lease of dark fiber Toluca Cuernavaca México, D.F. Puebla *As part of a consortium formed with Telefónica and Megacable 26

27 * And Putting it to Good Work driving even faster growth IZZI Unlimited Telephony High Speed Internet PackTV 50+ SD channels and access to TV everywhere and catch-up with VEO +$150 Unlimited calls to fixed and mobile numbers in Mexico, the US, Canada, Latin America, and Europe 6 digital solutions 10Mbps of speed Izzi Dr. WiFi assitance 24/7 support Access to more than 8,000 hotspots through the national WiFi network Zona YOO PackHD 100+ SD and HD channels and access to TV everywhere and catch-up with VEO PackHDMax 180+ SD and HD channels and access to TV everywhere and catch-up with VEO App and dual tuner DVR +$300 +$500 Ps.400/month (taxes included) 27

28 * And Putting it to Good Work driving even faster growth izzi Paquete Conectes Telmex Paquete Acerques Local calls Unlimited 100 ($1.55/min) 200 ($1.55/min) Todo México SL Unlimited (up to 1,000 minutes) Local mobile calls Unlimited 100 ($0.81/min) 100 ($0.81/min) 100 ($0.81/min) LD mobile Unlimited $2.00/min $2.00/min $2.00/min LD inside Mexico Unlimited 100 ($1.19/min) Unlimited (up to 1,000 minutes) Unlimited (up to 1,000 minutes) LD to the US Unlimited $1.19/min 200 ($1.19/min) LD to Canada and South America LD to Alaska, PR, and Central America Unlimited 1 (up to 500 minutes) Unlimited $1.19/min $1.19/min $1.19/min Unlimited $2.39/min $1.19/min $1.19/min LD to Europe Unlimited $9.55/min $1.19/min $1.19/min Internet Speed 10 Mbps Up to 3Mbps Up to 5Mbps Up to 10 Mbps Price per month $ $ $ $ All figures include taxes and are denominated in Mexican pesos LD = Long Distance. 1 Includes Alaska, Hawaii, and Puerto Rico 28

29 * The Telecom Opportunity Just getting started Total Revenues Ps.398 billion 3Q 14 (LTM) Total Subscribers million 3Q % 2.5% 4.3% 1.6% 2.7% 4.2% 4.4% 5.3% 5.3% AMX TEF 4.4% AMX 5.4% 3.8% 1.9% 4.4% 6.9% Nextel 14.4% Iusacel Other Otros Dish 65.8% Mega TV Sky 61.6% TV Cable Source: Televisa public filings and internal estimates 29

30 * The Telecom Opportunity Just getting started 2006 Today % 5.8% Voice? 7.5% 16.0% Data? Source: Televisa public filings and internal estimates 30

31 Investor Relations Website: Carlos Madrazo Investor Relations Officer + (52) Av. Vasco de Quiroga 2000, A4 Col. Santa Fe CP cmadrazov@televisa.com.mx Eduardo Nestel Investor Relations Manager + (52) Av. Vasco de Quiroga 2000, A4 Col. Santa Fe CP enestel@televisa.com.mx