-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Cw+faPk6xAvp//6bkqQgDkHeVMla1FHhTEPRDgIyz/rhJ4uhs5pcQb7pCYFGk9eE 5npkV3FkafEdjOqP40creQ== 0000895345-06-000196.txt : 20060227 0000895345-06-000196.hdr.sgml : 20060227 20060224215251 ACCESSION NUMBER: 0000895345-06-000196 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20060224 FILED AS OF DATE: 20060227 DATE AS OF CHANGE: 20060224 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GRUPO TELEVISA S A CENTRAL INDEX KEY: 0000912892 STANDARD INDUSTRIAL CLASSIFICATION: TELEVISION BROADCASTING STATIONS [4833] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12610 FILM NUMBER: 06644857 BUSINESS ADDRESS: STREET 1: AVENIDA CHAPULTEPEC NO 28 CITY: 06724 MEXICO DF MEXI STATE: O5 ZIP: 00000 MAIL ADDRESS: STREET 1: AVENIDA CHAPULTEPEC NO. 28 STREET 2: COLONIA DOCTORES FORMER COMPANY: FORMER CONFORMED NAME: GRUPO TELEVISA S A DE CV DATE OF NAME CHANGE: 19931001 6-K 1 kr6k5_grupo.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN ISSUER PURSUANT TO RULES 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of February, 2006 GRUPO TELEVISA, S.A. ------------------------------------------------- (Translation of registrant's name into English) Av. Vasco de Quiroga No. 2000, Colonia Santa Fe 01210 Mexico, D.F. --------------------------------------------------------------------- (Address of principal executive offices) (Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.) Form 20-F X Form 40-F ------- ------- (Indicate by check mark whether the registrant by furnishing the information contained in this Form is also furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.) Yes No X ----- ----- (If "Yes" is marked indicate below the file number assigned to the registrant in connection with Rule 12g-3-2(b): 82 .) MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: NET INCOME QUARTER: 4 YEAR: 2005 GRUPO TELEVISA, S.A. CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2005 AND 2004 (Thousands of Mexican Pesos) FINAL PRINTING
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR -------------------- -------------------- S AMOUNT % Amount % - --------------------------------------------------------------------------------------------------------- 1 TOTAL ASSETS 74,994,977 100 76,345,977 100 2 CURRENT ASSETS 33,740,418 45 35,184,249 46 3 CASH AND SHORT-TERM INVESTMENTS 14,779,076 20 17,195,947 23 4 ACCOUNTS AND NOTES RECEIVABLE (NET) 13,896,300 19 11,604,240 15 5 OTHER ACCOUNTS AND NOTES RECEIVABLE (NET) 728,193 1 1,250,880 2 6 INVENTORIES 3,758,781 5 4,398,532 6 7 OTHER CURRENT ASSETS 578,068 1 734,650 1 8 LONG-TERM 7,572,044 10 6,982,937 9 9 ACCOUNTS AND NOTES RECEIVABLE (NET) 0 0 0 0 10 INVESTMENT IN SHARES OF NON-CONSOLIDATED SUBSIDIARIES AND ASSOCIATES 6,506,464 9 6,770,342 9 11 OTHER INVESTMENTS 1,065,580 1 212,595 0 12 PROPERTY, PLANT AND EQUIPMENT (NET) 19,728,547 26 19,798,098 26 13 LAND AND BUILDINGS 13,368,018 18 13,355,380 17 14 MACHINERY AND INDUSTRIAL EQUIPMENT 19,606,642 26 19,524,804 26 15 OTHER EQUIPMENT 3,019,677 4 3,258,148 4 16 ACCUMULATED DEPRECIATION 17,174,543 23 16,993,039 22 17 CONSTRUCTION IN PROGRESS 908,753 1 652,805 1 18 DEFERRED ASSETS (NET) 10,013,273 13 9,461,758 12 19 OTHER ASSETS 3,940,695 5 4,918,935 6 20 TOTAL LIABILITIES 45,145,396 100 47,821,989 100 21 CURRENT LIABILITIES 6,798,020 15 9,074,654 19 22 SUPPLIERS 2,954,723 7 2,206,412 5 23 BANK LOANS 246,136 1 89,051 0 24 STOCK MARKET LOANS 94,321 0 3,317,922 7 25 TAXES PAYABLE 1,055,793 2 1,610,711 3 26 OTHER CURRENT LIABILITIES 2,447,047 5 1,850,558 4 27 LONG-TERM LIABILITIES 19,785,547 44 21,555,633 45 28 BANK LOANS 3,679,782 8 5,178,416 11 29 STOCK MARKET LOANS 14,457,458 32 14,396,723 30 30 OTHER LOANS 1,648,307 4 1,980,494 4 31 DEFERRED LIABILITIES 18,369,669 41 17,191,702 36 32 OTHER LIABILITIES 192,160 0 0 0 33 CONSOLIDATED STOCKHOLDERS' EQUITY 29,849,581 100 28,523,988 100 34 MINORITY INTEREST 850,872 3 (124,562) (0) 35 MAJORITY INTEREST 28,998,709 97 28,648,550 100 36 CONTRIBUTED CAPITAL 14,101,905 47 14,101,905 49 37 CAPITAL STOCK (NOMINAL) 2,524,174 8 2,524,174 9 38 RESTATEMENT OF CAPITAL STOCK 7,365,289 25 7,365,289 26 39 PREMIUM ON SALES OF SHARES 4,212,442 14 4,212,442 15 40 CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES 0 0 0 0 41 EARNED CAPITAL 14,896,804 50 14,546,645 51 42 RETAINED EARNINGS AND CAPITAL RESERVE 6,587,391 22 6,988,904 25 43 RESERVE FOR REPURCHASE OF SHARES 5,744,583 19 5,744,583 20 44 EXCESS (SHORTFALL) IN RESTATEMENT OF STOCK- HOLDERS' EQUITY (3,560,712) (12) (2,647,449) (9) 45 NET INCOME FOR THE YEAR 6,125,542 21 4,460,607 16
CONSOLIDATED BALANCE SHEETS BREAKDOWN OF MAJOR CONCEPTS (Thousands of Mexican Pesos) FINAL PRINTING
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR -------------------- -------------------- S AMOUNT % AMOUNT % - --------------------------------------------------------------------------------------------------------- 3 CASH AND SHORT-TERM INVESTMENTS 14,779,076 100 17,195,947 100 46 CASH 544,582 4 403,540 2 47 SHORT-TERM INVESTMENTS 14,234,494 96 16,792,407 98 18 DEFERRED ASSETS (NET) 10,013,273 100 9,461,758 100 48 DEFERRED EXPENSES (NET) 2,813,255 28 1,690,141 18 49 GOODWILL 7,200,018 72 7,771,617 82 50 DEFERRED TAXES 0 0 0 0 51 OTHER 0 0 0 0 21 CURRENT LIABILITIES 6,798,020 100 9,074,654 100 52 FOREIGN CURRENCY LIABILITIES 2,121,293 31 5,316,117 59 53 MEXICAN PESOS LIABILITIES 4,676,727 69 3,758,537 41 24 STOCK MARKET LOANS 94,321 100 3,317,922 100 54 COMMERCIAL PAPER 0 0 3,317,922 100 55 CURRENT MATURITIES OF MEDIUM-TERM NOTES 0 0 0 0 56 CURRENT MATURITIES OF BONDS 94,321 100 0 0 26 OTHER CURRENT LIABILITIES 2,447,047 100 1,850,558 100 57 OTHER CURRENT LIABILITIES WITH COST 75,604 3 73,101 4 58 OTHER CURRENT LIABILITIES WITHOUT COST 2,371,443 97 1,777,457 96 27 LONG-TERM LIABILITIES 19,785,547 100 21,555,633 100 59 FOREIGN CURRENCY LIABILITIES 15,078,249 76 12,377,842 57 60 MEXICAN PESOS LIABILITIES 4,707,298 24 9,177,791 43 29 STOCK MARKET LOANS 14,457,458 100 14,396,723 100 61 BONDS 14,457,458 100 14,396,723 100 62 MEDIUM-TERM NOTES 0 0 0 0 30 OTHER LOANS 1,648,307 100 1,980,494 100 63 OTHER LOANS WITH COST 1,186,933 72 1,368,760 69 64 OTHER LOANS WITHOUT COST 461,374 28 611,734 31 31 DEFERRED LIABILITIES 18,369,669 100 17,191,702 100 65 NEGATIVE GOODWILL 0 0 0 0 66 DEFERRED TAXES 323,240 2 1,378,481 8 67 OTHER 18,046,429 98 15,813,221 92 32 OTHER LIABILITIES 192,160 100 0 100 68 RESERVES 192,160 100 0 0 69 OTHER LIABILITIES 0 0 0 0 44 EXCESS (SHORTFALL) IN RESTATEMENT OF STOCK- (3,560,712) 100 (2,647,449) 100 HOLDERS' EQUITY 70 ACCUMULATED MONETARY RESULT (32,591) (1) (32,591) (1) 71 RESULT FROM HOLDING NON-MONETARY ASSETS (3,528,121) (99) (2,614,858) (99)
CONSOLIDATED FINANCIAL STATEMENTS OTHER CONCEPTS (Thousands of Mexican Pesos) FINAL PRINTING
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR -------------------- -------------------- S AMOUNT AMOUNT - --------------------------------------------------------------------------------------------------------- 72 WORKING CAPITAL 26,942,398 26,109,595 73 PENSIONS AND SENIORITY PREMIUMS 1,396,383 1,180,543 74 EXECUTIVES (*) 34 36 75 EMPLOYEES (*) 15,042 14,104 76 WORKERS (*) 0 0 77 OUTSTANDING SHARES (*) 39,940,931,070 41,637,582,351 78 REPURCHASED SHARES (*) 29,332,439,331 27,635,788,050 * THESE CONCEPTS ARE STATED IN UNITS
CONSOLIDATED STATEMENTS OF INCOME FROM JANUARY 1 THROUGH DECEMBER 31, 2005 AND 2004 (Thousands of Mexican Pesos) FINAL PRINTING
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR -------------------- -------------------- R AMOUNT % AMOUNT % - --------------------------------------------------------------------------------------------------------- 1 NET SALES 32,481,041 100 30,291,209 100 2 COST OF SALES 16,733,605 52 16,970,868 56 3 GROSS PROFIT 15,747,436 48 13,320,341 44 4 OPERATING EXPENSES 4,944,649 15 4,477,298 15 5 OPERATING INCOME 10,802,787 33 8,843,043 29 6 INTEGRAL FINANCING COST 1,782,030 5 1,566,687 5 7 INCOME AFTER INTEGRAL FINANCING COST 9,020,757 28 7,276,356 24 8 OTHER FINANCIAL OPERATIONS 694,122 2 940,583 3 9 INCOME BEFORE TAXES AND EMPLOYEES' PROFIT SHARING 8,326,635 26 6,335,773 21 10 PROVISION FOR TAXES AND EMPLOYEES' PROFIT SHARING 771,150 2 1,215,545 4 11 NET INCOME AFTER TAXES AND EMPLOYEES' PROFIT SHARING 7,555,485 23 5,120,228 17 12 SHARE IN NET INCOME OF NON-CONSOLIDATED SUBSIDIARIES AND ASSOCIATES 160,158 0 635,490 2 13 CONSOLIDATED NET INCOME OF CONTINUING OPERATIONS 7,715,643 24 5,755,718 19 14 INCOME FROM DISCONTINUED OPERATIONS 0 0 0 0 15 CONSOLIDATED NET INCOME BEFORE EXTRAORDINARY ITEMS 7,715,643 24 5,755,718 19 16 EXTRAORDINARY ITEMS, NET EXPENSE (INCOME) 0 0 0 0 17 CUMULATIVE EFFECT FROM ACCOUNTING CHANGE, NET 506,080 2 1,055,636 3 18 NET CONSOLIDATED INCOME 7,209,563 22 4,700,082 16 19 NET INCOME OF MINORITY INTEREST 1,084,021 3 239,475 1 20 NET INCOME OF MAJORITY INTEREST 6,125,542 19 4,460,607 15
CONSOLIDATED STATEMENTS OF INCOME BREAKDOWN OF MAIN CONCEPTS (Thousands of Mexican Pesos) FINAL PRINTING
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR -------------------- -------------------- R AMOUNT % AMOUNT % - --------------------------------------------------------------------------------------------------------- 1 NET SALES 32,481,041 100 30,291,209 100 21 DOMESTIC 28,717,614 88 25,629,888 85 22 FOREIGN 3,763,427 12 4,661,321 15 23 TRANSLATED INTO DOLLARS (***) 354,155 1 404,609 1 6 INTEGRAL FINANCING COST 1,782,030 100 1,566,687 100 24 INTEREST EXPENSE 2,102,724 118 1,987,372 127 25 FOREIGN EXCHANGE LOSS 727,547 41 95,179 6 26 INTEREST INCOME 932,124 52 678,391 43 27 FOREIGN EXCHANGE GAIN 0 0 0 0 28 RESULT FROM MONETARY POSITION (147,892) (8) (15,318) (1) 42 LOSS ON RESTATEMENT OF UDI'S 31,775 2 177,845 11 43 GAIN ON RESTATEMENT OF UDI'S 0 0 0 0 8 OTHER FINANCIAL OPERATIONS 694,122 100 940,583 100 29 OTHER EXPENSE (INCOME) NET 694,122 100 940,583 100 30 (GAIN) LOSS ON SALE OF OWN SHARES 0 0 0 0 31 (GAIN) LOSS ON SALE OF SHORT-TERM INVESTMENTS 0 0 0 0 10 PROVISION FOR TAXES AND EMPLOYEES' PROFIT SHARING 771,150 100 1,215,545 100 32 INCOME TAX 1,630,134 211 617,375 51 33 DEFERRED INCOME TAX (878,891) (114) 591,434 49 34 EMPLOYEES' PROFIT SHARING 19,907 3 6,736 1 35 DEFERRED EMPLOYEES' PROFIT SHARING 0 0 0 0 (***) THOUSANDS OF DOLLARS
CONSOLIDATED STATEMENTS OF INCOME OTHER CONCEPTS (Thousands of Mexican Pesos) FINAL PRINTING
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR -------------------- -------------------- R AMOUNT AMOUNT - --------------------------------------------------------------------------------------------------------- 36 TOTAL SALES 34,999,429 32,213,056 37 TAX RESULT FOR THE YEAR 4,277,344 215,098 38 NET SALES (**) 32,481,041 30,291,209 39 OPERATING INCOME (**) 10,802,787 8,843,043 40 NET INCOME OF MAJORITY INTEREST (**) 6,125,542 4,460,607 41 NET CONSOLIDATED INCOME (**) 7,209,563 4,700,082 (**) RESTATED INFORMATION FOR THE LAST TWELVE MONTHS
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME FROM OCTOBER 1 THROUGH DECEMBER 31, 2005 AND 2004 (Thousands of Mexican Pesos) FINAL PRINTING
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR -------------------- -------------------- R AMOUNT % AMOUNT % - --------------------------------------------------------------------------------------------------------- 1 NET SALES 9,651,895 100 8,694,517 100 2 COST OF SALES 4,755,657 49 4,529,164 52 3 GROSS PROFIT 4,896,238 51 4,165,353 48 4 OPERATING EXPENSES 1,399,630 15 1,229,574 14 5 OPERATING INCOME 3,496,608 36 2,935,779 34 6 INTEGRAL FINANCING COST 318,142 3 468,277 5 7 INCOME AFTER INTEGRAL FINANCING COST 3,178,466 33 2,467,502 28 8 OTHER FINANCIAL OPERATIONS 118,237 1 63,368 1 9 INCOME BEFORE TAXES AND EMPLOYEES' PROFIT SHARING 3,060,229 32 2,404,134 28 10 PROVISION FOR TAXES AND EMPLOYEES' PROFIT SHARING (444,791) (5) 384,619 4 11 NET INCOME AFTER TAXES AND EMPLOYEES' PROFIT SHARING 3,505,020 36 2,019,515 23 12 SHARE IN NET INCOME OF NON-CONSOLIDATED SUBSIDIARIES AND ASSOCIATES (17,103) (0) 53,071 1 13 CONSOLIDATED NET INCOME OF CONTINUING OPERATIONS 3,487,917 36 2,072,586 24 14 INCOME FROM DISCONTINUED OPERATIONS 0 0 0 0 15 CONSOLIDATED NET INCOME BEFORE EXTRAORDINARY ITEMS 3,487,917 36 2,072,586 24 16 EXTRAORDINARY ITEMS, NET EXPENSE (INCOME) 0 0 0 0 17 CUMULATIVE EFFECT FROM ACCOUNTING CHANGE, NET 323,698 3 (5,317) (0) 18 NET CONSOLIDATED INCOME 3,164,219 33 2,077,903 24 19 NET INCOME OF MINORITY INTEREST 647,191 7 179,230 2 20 NET INCOME OF MAJORITY INTEREST 2,517,028 26 1,898,673 22
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME BREAKDOWN OF MAIN CONCEPTS (Thousands of Mexican Pesos) FINAL PRINTING
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR -------------------- -------------------- R AMOUNT % AMOUNT % - --------------------------------------------------------------------------------------------------------- 1 NET SALES 9,651,895 100 8,694,517 100 21 DOMESTIC 8,618,849 89 7,712,852 89 22 FOREIGN 1,033,046 11 981,665 11 23 TRANSLATED INTO DOLLARS (***) 104,483 1 97,541 1 6 INTEGRAL FINANCING COST 318,142 100 468,277 100 24 INTEREST EXPENSE 521,776 164 648,324 138 25 FOREIGN EXCHANGE LOSS 136,593 43 74,122 16 26 INTEREST INCOME 192,702 61 191,011 41 27 FOREIGN EXCHANGE GAIN 0 0 0 0 28 RESULT FROM MONETARY POSITION (160,732) (51) (126,921) (27) 42 LOSS ON RESTATEMENT OF UDI'S 13,207 4 63,763 14 43 GAIN ON RESTATEMENT OF UDI'S 0 0 0 0 8 OTHER FINANCIAL OPERATIONS 118,237 100 63,368 100 29 OTHER EXPENSE (INCOME) NET 118,237 100 63,368 100 30 (GAIN) LOSS ON SALE OF OWN SHARES 0 0 0 0 31 (GAIN) LOSS ON SALE OF SHORT-TERM INVESTMENTS 0 0 0 0 10 PROVISION FOR TAXES AND EMPLOYEES' PROFIT SHARING (444,791) (100) 384,619 100 32 INCOME TAX 581,408 131 198,228 52 33 DEFERRED INCOME TAX (1,041,438) (234) 183,949 48 34 EMPLOYEES' PROFIT SHARING 15,239 3 2,442 1 35 DEFERRED EMPLOYEES' PROFIT SHARING 0 0 0 0 (***) THOUSANDS OF DOLLARS
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION FROM JANUARY 1 THROUGH DECEMBER 31, 2005 AND 2004 (Thousands of Mexican Pesos) FINAL PRINTING
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR -------------------- -------------------- C AMOUNT AMOUNT - --------------------------------------------------------------------------------------------------- 1 CONSOLIDATED NET INCOME 7,209,563 4,700,082 2 + (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE USING RESOURCES 2,154,808 3,566,094 3 RESOURCES FROM NET INCOME FOR THE YEAR 9,364,371 8,266,176 4 RESOURCES FROM CHANGE IN WORKING CAPITAL 1,932,615 (244,689) 5 RESOURCES PROVIDED BY (USED FOR) OPERATING ACTIVITIES 11,296,986 8,021,487 6 CASH FLOW FROM EXTERNAL FINANCING (4,680,118) 1,839,522 7 CASH FLOW FROM INTERNAL FINANCING (5,185,654) (4,239,472) 8 RESOURCES PROVIDED BY (USED FOR) FINANCING ACTIVITIES (9,865,772) (2,399,950) 9 RESOURCES PROVIDED BY (USED FOR) INVESTMENT ACTIVITIES (3,848,085) (2,239,066) 10 NET INCREASE (DECREASE) IN CASH AND SHORT-TERM INVESTMENTS (2,416,871) 3,382,471 11 CASH AND SHORT-TERM INVESTMENTS AT THE BEGINNING OF PERIOD 17,195,947 13,813,476 12 CASH AND SHORT-TERM INVESTMENTS AT THE END OF PERIOD 14,779,076 17,195,947
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION BREAKDOWN OF MAIN CONCEPTS (Thousands of Mexican Pesos) FINAL PRINTING
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR -------------------- -------------------- C AMOUNT AMOUNT - ------------------------------------------------------------------------------------------------------- 2 + (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE USING RESOURCES 2,154,808 3,566,094 13 DEPRECIATION AND AMORTIZATION FOR THE YEAR 2,418,969 2,144,158 14 + (-) NET INCREASE (DECREASE) IN PENSIONS AND SENIORITY PREMIUMS 0 0 15 + (-) NET LOSS (GAIN) IN FOREIGN EXCHANGE 0 0 16 + (-) NET LOSS (GAIN) IN ASSETS AND LIABILITIES RESTATEMENT 0 0 17 + (-) OTHER ITEMS 0 0 40 + (-) OTHER NON-EBITDA ITEMS (264,161) 1,421,936 4 RESOURCES FROM CHANGE IN WORKING CAPITAL 1,932,615 (244,689) 18 + (-) DECREASE (INCREASE) IN ACCOUNTS RECEIVABLE (2,292,060) 71,630 19 + (-) DECREASE (INCREASE) IN INVENTORIES 1,023,355 210,173 20 + (-) DECREASE (INCREASE) IN OTHER ACCOUNTS RECEIVABLE 600,308 (343,290) 21 + (-) INCREASE (DECREASE) IN SUPPLIERS 748,311 (625,630) 22 + (-) INCREASE (DECREASE) IN OTHER LIABILITIES 1,852,701 442,428 6 CASH FLOW FROM EXTERNAL FINANCING (4,680,118) 1,839,522 23 + SHORT-TERM BANK AND STOCK MARKET FINANCING 0 0 24 + LONG-TERM BANK AND STOCK MARKET FINANCING 6,375,900 4,313,582 25 + DIVIDEND RECEIVED 0 0 26 + OTHER FINANCING 0 0 27 (-) BANK FINANCING AMORTIZATION (1,171,662) (1,432,210) 28 (-) STOCK MARKET FINANCING AMORTIZATION (8,651,139) 0 29 (-) OTHER FINANCING AMORTIZATION (1,233,217) (1,041,850) 7 CASH FLOW FROM INTERNAL FINANCING (5,185,654) (4,239,472) 30 + (-) INCREASE (DECREASE) IN CAPITAL STOCK 0 0 31 (-) DIVIDENDS PAID (4,305,789) (4,114,064) 32 + PREMIUM ON SALE OF SHARES 0 0 33 + CONTRIBUTION FOR FUTURE CAPITAL INCREASES (879,865) (125,408) 9 RESOURCES PROVIDED BY (USED FOR) INVESTMENT ACTIVITIES (3,848,085) (2,239,066) 34 + (-) DECREASE (INCREASE) IN PERMANENT INVESTMENTS (1,095,224) (209,655) 35 (-) ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT (2,738,095) (2,094,532) 36 (-) INCREASE IN CONSTRUCTION IN PROGRESS 0 0 37 + SALE OF OTHER PERMANENT INVESTMENTS 0 0 38 + SALE OF TANGIBLE FIXED ASSETS 317,008 153,493 39 + (-) OTHER ITEMS (331,774) (88,372)
RATIOS CONSOLIDATED FINAL PRINTING
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR P - ------------------------------------------------------------------------------------------------------- YIELD 1 NET INCOME TO NET SALES 22.20 % 15.52 % 2 NET INCOME TO STOCKHOLDERS' EQUITY (**) 21.12 % 15.57 % 3 NET INCOME TO TOTAL ASSETS (**) 9.61 % 6.16 % 4 CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME 96.53 % 0.00 % 5 RESULT FROM MONETARY POSITION TO NET INCOME 2.05 % 0.33 % ACTIVITY 6 NET SALES TO NET ASSETS (**) 0.43 times 0.40 times 7 NET SALES TO FIXED ASSETS (**) 1.65 times 1.53 times 8 INVENTORIES TURNOVER (**) 4.45 times 3.86 times 9 ACCOUNTS RECEIVABLE IN DAYS OF SALES 134 days 120 days 10 PAID INTEREST TO TOTAL LIABILITIES WITH COST (**) 10.65 % 8.14 % LEVERAGE 11 TOTAL LIABILITIES TO TOTAL ASSETS 60.20 % 62.64 % 12 TOTAL LIABILITIES TO STOCKHOLDERS' EQUITY 1.51 times 1.68 times 13 FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES 38.10 % 37.00 % 14 LONG-TERM LIABILITIES TO FIXED ASSETS 100.29 % 108.88 % 15 OPERATING INCOME TO INTEREST PAID 5.14 times 4.45 times 16 NET SALES TO TOTAL LIABILITIES (**) 0.72 times 0.63 times LIQUIDITY 17 CURRENT ASSETS TO CURRENT LIABILITIES 4.96 times 3.88 times 18 CURRENT ASSETS LESS INVENTORY TO CURRENT LIABILITIES 4.41 times 3.39 times 19 CURRENT ASSETS TO TOTAL LIABILITIES 0.75 times 0.74 times 20 AVAILABLE ASSETS TO CURRENT LIABILITIES 217.40 % 189.49 % CASH FLOW 21 RESOURCES FROM NET INCOME TO NET SALES 28.83 % 27.29 % 22 RESOURCES FROM CHANGES IN WORKING CAPITAL TO NET SALES 5.95 % (0.81) % 23 RESOURCES GENERATED (USED) IN OPERATING TO INTEREST PAID 5.37 times 4.04 times 24 EXTERNAL FINANCING TO RESOURCES PROVIDED BY (USED FOR) FINANCING 47.44 % (76.65) % 25 INTERNAL FINANCING TO RESOURCES PROVIDED BY (USED FOR) FINANCING 52.56 % 176.65 % 26 ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT TO RESOURCES PROVIDED BY (USED FOR) INVESTMENT ACTIVITIES 71.15 % 93.54 % (**) RATIOS TAKE INTO CONSIDERATION THE LAST TWELVE MONTHS.
DATA PER SHARE CONSOLIDATED FINANCIAL STATEMENT FINAL PRINTING
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR -------------------- -------------------- D AMOUNT AMOUNT - ------------------------------------------------------------------------------------------------------- 1 BASIC PROFIT PER ORDINARY SHARE (**) $ .02 $ .01 2 BASIC PROFIT PER PREFERRED SHARE (**) $ .00 $ .00 3 DILUTED PROFIT PER ORDINARY SHARE (**) $ .00 $ .00 4 CONTINUING OPERATING PROFIT PER COMMON SHARE (**) $ .02 $ .02 5 EFFECT OF DISCONTINUED OPERATION ON CONTINUING OPERATING PROFIT PER SHARE (**) $ .00 $ .00 6 EFFECT OF EXTRAORDINARY PROFIT AND LOSS ON CONTINUING OPERATING PROFIT PER SHARE (**) $ .00 $ .00 7 EFFECT OF CHANGES IN ACCOUNTING POLICIES ON CONTINUING OPERATING PROFIT PER SHARE (**) $ .00 $ .00 8 CARRYING VALUE PER SHARE $ .09 $ .08 9 CASH DIVIDEND ACCUMULATED PER SHARE $ .01 $ .42 10 DIVIDEND IN SHARES PER SHARE .00 shares .10 shares 11 MARKET PRICE TO CARRYING VALUE 4.28 times 3.43 times 12 MARKET PRICE TO BASIC PROFIT PER ORDINARY SHARE (**) 20.34 times 22.26 times 13 MARKET PRICE TO BASIC PROFIT PER PREFERRED SHARE (**) .00 times .00 times (**) TO CALCULATE THE DATA PER SHARE USE THE NET INCOME FOR THE LAST TWELVE MONTHS.
FINANCIAL STATEMENT NOTES (1) CONSOLIDATED FINAL PRINTING - --------------------------------------------------------------------------- CONSOLIDATED FINANCIAL STATEMENTS - BREAKDOWN OF MAIN CONCEPTS - LINE S53 MEXICAN PESOS LIABILITIES. THIS CAPTION INCLUDES, IN THE FOURTH QUARTER OF 2005, LIABILITIES IN FOREIGN CURRENCY (TAXES PAYABLE) FOR AN AMOUNT OF PS.49,605, WHICH CANNOT BE PRESENTED IN LINE S52 (FOREIGN CURRENCY LIABILITIES) SINCE THE SYSTEM DOES NOT ALLOW A RELATED VALIDATION WITH ANNEX 5 (ANALYSIS OF CREDITS). STATEMENT OF CHANGES - ANALYSIS OF MAJOR CONCEPTS LINE C33 "CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES" INCLUDES PS.314,559 OF RESALE OF SHARES REPURCHASED, AND PS.(1,194,424) OF REPURCHASE OF SHARES. THIS PRESENTATION WAS MADE AS DISCLOSED ABOVE DUE TO THE FACT THAT THE CURRENT FORMAT FOR THE STATEMENT OF CHANGES IN FINANCIAL POSITION IS RESTRICTED TO CERTAIN STANDARD CONCEPTS. (1) THE REPORT CONTAINS THE NOTES CORRESPONDING TO THE FINANCIAL STATEMENT AMOUNTS, INCLUDING THEIR BREAKDOWN OF MAIN CONCEPTS AND OTHER CONCEPTS. CONSOLIDATED FINAL PRINTING ANALYSIS OF PAID CAPITAL STOCK CHARACTERISTICS OF THE SHARES AUDITED INFORMATION
CAPITAL STOCK NUMBER OF SHARES (THOUSANDS OF MEXICAN PESOS) ---------------------------------------------------------------- ---------------------------- NOMINAL VALID FIXED VARIABLE FREE SERIES VALUE COUPON PORTION PORTION MEXICAN SUBSCRIPTION FIXED VARIABLE - ------- -------- -------- ----------------- -------- ---------------- ----------------- -------------- ------------ A 0 114,245,852,915 114,245,852,915 852,636 B 0 53,970,590,013 53,970,590,013 411,974 D 0 85,862,244,071 85,862,244,071 629,782 L 0 85,862,244,071 85,862,244,071 629,782 TOTAL 339,940,931,070 0 254,078,686,999 85,862,244,071 2,524,174 0
TOTAL NUMBER OF SHARES REPRESENTING THE PAID-IN CAPITAL STOCK ON THE DATE THE INFORMATION WAS SENT 339,940,931,070 SHARES REPRESENTED BY: CPOs : 117 SHARES (25 SERIES A, 22 SERIES B, 35 SERIES D AND 35 SERIES L) UNITS : 0 ADRSs : 0 GDRSs : 0 ADSs : 0 GDSs : TWENTY CPOs SHARES REPURCHASED MARKET VALUE OF THE SHARE NUMBER OF AT REPURCHASE AT END OF THE SERIES SHARES AVERAGE PRICE QUARTER PRICE - --------------------------------------------------------------------------- A 10,490,391,260 0.19822 0.36521 B 6,299,092,783 0.19822 0.36521 D 6,271,477,644 0.19822 0.36521 L 6,271,477,644 0.19822 0.36521 NOTES: THE TABLE ABOVE REFLECTS OUTSTANDING SHARES PLUS THE SHARES REPURCHASED REPRESENT THE TOTAL NUMBER OF SHARES ISSUED. SEE NOTE 5 TO CONSOLIDATED FINANCIAL STATEMENTS. MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA GRUPO TELEVISA, S.A. DECLARATION OF THE REGISTRANT'S OFFICERS, RESPONSIBLE FOR THE INFORMATION. WE HEREBY DECLARE THAT, TO THE EXTENT OF OUR FUNCTIONS, WE PREPARED THE INFORMATION RELATED TO THE REGISTRANT CONTAINED IN THIS QUARTERLY REPORT, AND BASED ON OUR KNOWLEDGE, THIS INFORMATION FAIRLY PRESENTS THE REGISTRANT'S CONDITION. WE ALSO DECLARE THAT WE ARE NOT AWARE OF ANY RELEVANT INFORMATION WHICH HAS BEEN OMITTED OR IS UNTRUE IN THIS QUARTERLY REPORT, OR INFORMATION CONTAINED IN SUCH REPORT THAT MAY BE MISLEADING TO INVESTORS. - ----------------------------- ------------------------------- EMILIO AZCARRAGA JEAN SALVI FOLCH VIADERO PRESIDENT AND CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER OFFICER MEXICO, D.F., FEBRUARY 23, 2005 MEXICAN STOCK EXCHANGE ("BMV") STOCK EXCHANGE CODE: TLEVISA DATE: 2/24/2006 GRUPO TELEVISA, S.A. GENERAL DATA OF ISSUER =========================================================================== COMPANY'S NAME: GRUPO TELEVISA, S.A. ADDRESS: AV. VASCO DE QUIROGA # 2000 NEIGHBORHOOD: SANTA FE ZIP CODE: 01210 CITY AND STATE: MEXICO, D.F. TELEPHONE: 5261-20-00 FAX: 5261-24-94 INTERNET ADDRESS: www.televisa.com.mx TAX DATA OF THE ISSUER =========================================================================== COMPANY TAX CODE: GTE901219GK3 ADDRESS: AV. VASCO DE QUIROGA # 2000 NEIGHBORHOOD: SANTA FE ZIP CODE: 01210 CITY AND STATE: MEXICO, D.F. RESPONSIBLE FOR PAYMENT - --------------------------------------------------------------------------- NAME: C.P.C. JOSE RAUL GONZALEZ LIMA ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 1 NEIGHBORHOOD: SANTA FE ZIP CODE: 01210 CITY AND STATE: MEXICO, D.F. TELEPHONE: 5261-25-77 FAX: 5261-20-43 E-MAIL: rglima@televisa.com.mx EXECUTIVES' DATA =========================================================================== BMV POSITION: CHAIRMAN OF THE BOARD POSITION: CHAIRMAN OF THE BOARD NAME: SR. EMILIO FERNANDO AZCARRAGA JEAN ADDRESS: AV. CHAPULTEPEC # 28 PISO 1 NEIGHBORHOOD: DOCTORES ZIP CODE: 06724 CITY AND STATE: MEXICO, D.F. TELEPHONE: 5709-42-89 FAX: 5709-39-88 E-MAIL: emilio@televisa.com.mx =========================================================================== BMV POSITION: GENERAL DIRECTOR POSITION: PRESIDENT AND CHIEF EXECUTIVE OFFICER NAME: SR. EMILIO FERNANDO AZCARRAGA JEAN ADDRESS: AV. CHAPULTEPEC # 28 PISO 1 NEIGHBORHOOD: DOCTORES ZIP CODE: 06724 CITY AND STATE: MEXICO, D.F. TELEPHONE: 5709-42-89 FAX: 5709-39-88 E-MAIL: emilio@televisa.com.mx - --------------------------------------------------------------------------- BMV POSITION: FINANCE DIRECTOR POSITION: CHIEF FINANCIAL OFFICER NAME: LIC. SALVI FOLCH VIADERO ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4 NEIGHBORHOOD: SANTA FE ZIP CODE: 01210 CITY AND STATE: MEXICO, D.F. TELEPHONE: 5261-25-80 FAX: 5261-20-39 E-MAIL: sfolch@televisa.com.mx - --------------------------------------------------------------------------- BMV POSITION: RESPONSIBLE FOR SENDING CORPORATE INFORMATION THROUGH EMISNET POSITION: DIRECTOR OF CORPORATE FINANCIAL INFORMATION NAME: C.P.C. JOSE RAUL GONZALEZ LIMA ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 1 NEIGHBORHOOD: SANTA FE ZIP CODE: 01210 CITY AND STATE: MEXICO, D.F. TELEPHONE: 5261-25-77 FAX: 5261-20-43 E-MAIL: rglima@televisa.com.mx - --------------------------------------------------------------------------- BMV POSITION: RESPONSIBLE FOR SENDING SHARE REPURCHASE INFORMATION THROUGH EMISNET POSITION: VICE PRESIDENT OF CORPORATE FINANCE NAME: LIC. ALEXANDRE MOREIRA PENNA ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 3 NEIGHBORHOOD: SANTA FE ZIP CODE: 01210 CITY AND STATE: MEXICO, D.F. TELEPHONE: 5261-24-58 FAX: 5261-25-24 E-MAIL: apenna@televisa.com.mx =========================================================================== BMV POSITION: RESPONSIBLE FOR LEGAL MATTERS POSITION: VICE PRESIDENT - LEGAL AND GENERAL COUNSEL OF GRUPO TELEVISA NAME: LIC. JUAN SEBASTIAN MIJARES ORTEGA ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4 NEIGHBORHOOD: SANTA FE ZIP CODE: 01210 CITY AND STATE: MEXICO, D.F. TELEPHONE: 5261-25-85 FAX: 5261-25-46 E-MAIL: jmijares@televisa.com.mx - --------------------------------------------------------------------------- BMV POSITION: SECRETARY OF THE BOARD OF DIRECTORS POSITION: EXTERNAL GENERAL COUNSEL NAME: LIC. RICARDO MALDONADO YANEZ ADDRESS: MONTES URALES # 505, PISO 3 NEIGHBORHOOD: LOMAS DE CHAPULTEPEC ZIP CODE: 11000 CITY AND STATE: MEXICO, D.F. TELEPHONE: 5201-74-47 FAX: 5520-10-65 E-MAIL: rmaldonado@macf.com.mx - --------------------------------------------------------------------------- BMV POSITION: PROSECRETARY OF THE BOARD OF DIRECTORS POSITION: COUNSEL OF THE PRESIDENT NAME: LIC. JULIO BARBA HURTADO ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 2 NEIGHBORHOOD: SANTA FE ZIP CODE: 01210 CITY AND STATE: MEXICO, D.F. TELEPHONE: 5261-24-23 FAX: E-MAIL: jbarbah@televisa.com.mx - --------------------------------------------------------------------------- BMV POSITION: RESPONSIBLE FOR INFORMATION FOR INVESTORS POSITION: DIRECTOR OF INVESTOR RELATIONS NAME: LIC. MICHEL BOYANCE BALDWIN ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4 NEIGHBORHOOD: SANTA FE ZIP CODE: 01210 CITY AND STATE: MEXICO, D.F. TELEPHONE: 5261-24-46 FAX: 5261-24-94 E-MAIL: mboyance@televisa.com.mx =========================================================================== BMV POSITION: RESPONSIBLE FOR SENDING INFORMATION THROUGH EMISNET POSITION: SECRETARY OF THE BOARD OF DIRECTORS NAME: LIC. JUAN SEBASTIAN MIJARES ORTEGA ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4 NEIGHBORHOOD: SANTA FE ZIP CODE: 01210 CITY AND STATE: MEXICO, D.F. TELEPHONE: 5261-25-85 FAX: 5261-25-46 E-MAIL: jmijares@televisa.com.mx - --------------------------------------------------------------------------- BMV POSITION: RESPONSIBLE FOR SENDING RELEVANT EVENTS THROUGH EMISNET POSITION: DIRECTOR OF INVESTOR RELATIONS NAME: LIC. MICHEL BOYANCE BALDWIN ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4 NEIGHBORHOOD: SANTA FE ZIP CODE: 01210 CITY AND STATE: MEXICO, D.F. TELEPHONE: 5261-24-46 FAX: 5261-24-94 E-MAIL: mboyance@televisa.com.mx BOARD OF DIRECTORS =========================================================================== POSITION : PRESIDENT(S) NAME : EMILIO FERNANDO AZCARRAGA JEAN - --------------------------------------------------------------------------- POSITION : VICE PRESIDENT(S) NAME : MARIA ASUNCION ARAMBURUZABALA LARREGUI - --------------------------------------------------------------------------- POSITION : DIRECTOR(S) NAME : PEDRO ASPE ARMELLA NAME : ALBERTO BAILLERES GONZALEZ NAME : JULIO BARBA HURTADO NAME : JOSE ANTONIO BASTON PATINO NAME : MANUEL JORGE CUTILLAS COVANI NAME : ALFONSO DE ANGOITIA NORIEGA NAME : CARLOS FERNANDEZ GONZALEZ NAME : BERNARDO GOMEZ MARTINEZ NAME : CLAUDIO X. GONZALEZ LAPORTE NAME : ROBERTO HERNANDEZ RAMIREZ NAME : ENRIQUE KRAUZE KLEINBORT NAME : GERMAN LARREA MOTA VELAZCO NAME : GILBERTO PEREZALONSO CIFUENTES NAME : ALEJANDRO QUINTERO INIGUEZ NAME : FERNANDO SENDEROS MESTRE NAME : ENRIQUE FRANCISCO J. SENIOR HERNANDEZ NAME : CARLOS SLIM DOMIT NAME : LORENZO H. ZAMBRANO TREVINO - --------------------------------------------------------------------------- POSITION : ALTERNATE DIRECTOR(S) NAME : HERBERT ALLEN III NAME : JUAN PABLO ANDRADE FRICH NAME : LUCRECIA ARAMBURUZABALA LARREGUI NAME : FELIX ARAUJO RAMIREZ NAME : MAXIMILIANO ARTEAGA CARLEBACH NAME : JOAQUIN BALCARCEL SANTA CRUZ NAME : JUAN FERNANDO CALVILLO ARMENDARIZ NAME : RAFAEL CARABIAS PRINCIPE NAME : FRANCISCO JOSE CHEVEZ ROBELO NAME : JOSE LUIS FERNANDEZ FERNANDEZ NAME : SALVI FOLCH VIADERO NAME : LEOPOLDO GOMEZ GONZALEZ BLANCO NAME : JOSE HEREDIA BRETON NAME : JOSE ANTONIO LARA DEL OLMO NAME : JORGE LUTTEROTH ECHEGOYEN NAME : JUAN SEBASTIAN MIJARES ORTEGA NAME : ALBERTO MONTIEL CASTELLANOS NAME : RAUL MORALES MEDRANO NAME : ALEXANDRE MOREIRA PENNA DA SILVA NAME : GUILLERMO NAVA GOMEZ-TAGLE - --------------------------------------------------------------------------- POSITION : STATUTORY AUDITOR(S) NAME : MARIO SALAZAR ERDMANN - --------------------------------------------------------------------------- POSITION : ALTERNATE STATUTORY AUDITOR(S) NAME : JOSE MIGUEL ARRIETA MENDEZ - --------------------------------------------------------------------------- POSITION : SECRETARY(IES) OF THE BOARD NAME : RICARDO MALDONADO YANEZ - --------------------------------------------------------------------------- POSITION : ALTERNATE SECRETARY(IES) OF THE BOARD NAME : JULIO BARBA HURTADO MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA QUARTER: 4 YEAR: 2005 GRUPO TELEVISA, S.A. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ANNEX 1 CONSOLIDATED FINAL PRINTING - ------------------------------------------------------------------------------ MEXICO CITY, D.F., FEBRUARY 23, 2006--GRUPO TELEVISA, S.A. (NYSE:TV; BMV: TLEVISA CPO; "TELEVISA" OR "THE COMPANY") TODAY ANNOUNCED RESULTS FOR THE FOURTH QUARTER AND THE FULL YEAR 2005. THE RESULTS HAVE BEEN PREPARED IN ACCORDANCE WITH MEXICAN GAAP AND ARE ADJUSTED IN MILLIONS OF MEXICAN PESOS IN PURCHASING POWER AS OF DECEMBER 31, 2005. EFFECTIVE OCTOBER 1, 2004, WE AMENDED CERTAIN AGREEMENTS IN OUR PUBLISHING DISTRIBUTION SEGMENT AND CHANGED THE ACCOUNTING TREATMENT OF THE RECOGNITION OF SALES AND COST OF GOODS SOLD. THIS CHANGE DOES NOT AFFECT OUR OIBDA RESULTS. IN ADDITION, BEGINNING APRIL 1, 2004, WE BEGAN TO INCLUDE THE CONSOLIDATED RESULTS OF SKY MEXICO IN OUR CONSOLIDATED STATEMENTS OF INCOME. PRO-FORMA RESULTS GIVE EFFECT TO THESE EVENTS AS IF THEY OCCURRED BEGINNING JANUARY 1, 2004. NET SALES PRO-FORMA NET SALES INCREASED 8% TO PS.32,481 MILLION IN 2005 COMPARED WITH PS.30,080.3 MILLION IN 2004. THIS INCREASE WAS ATTRIBUTABLE TO REVENUE GROWTH IN SKY MEXICO, TELEVISION BROADCASTING, PUBLISHING, PAY TELEVISION NETWORKS, CABLE TELEVISION, RADIO, PUBLISHING DISTRIBUTION, AND OTHER BUSINESSES, AND WAS PARTIALLY OFFSET BY LOWER SALES IN OUR PROGRAMMING EXPORTS SEGMENT. OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION ("OIBDA") PRO-FORMA CONSOLIDATED OIBDA INCREASED 16% TO PS.13,221.8 MILLION IN 2005 COMPARED WITH PS.11,401.4 MILLION IN 2004. OIBDA MARGIN REACHED AN ALL-TIME HIGH OF 40.7%, UP FROM A PRO-FORMA MARGIN OF 37.9% REPORTED LAST YEAR DUE TO HIGHER SALES, WHICH WERE PARTIALLY OFFSET BY HIGHER COST OF SALES AND OPERATING EXPENSES. IN ADDITION, PRO-FORMA CONSOLIDATED OPERATING INCOME ROSE 19.3% TO PS.10,802.8 MILLION IN 2005 COMPARED WITH PS.9,053.1 MILLION IN 2004. THE CHARGE FOR OPERATING DEPRECIATION AND AMORTIZATION WAS OF PS.2,419.0 MILLION IN 2005 AND PS.2,348.3 MILLION IN 2004. NET INCOME NET INCOME INCREASED 37.3% TO PS.6,125.5 MILLION IN 2005 COMPARED WITH PS.4,460.6 MILLION IN 2004. THE NET INCREASE OF PS.1,664.9 MILLION REFLECTED I) A PS.2,234.6 MILLION INCREASE IN OIBDA, II) A PS.178.5 MILLION DECREASE IN RESTRUCTURING AND NON-RECURRING CHARGES, III) A PS.68 MILLION DECREASE IN OTHER EXPENSE, NET, IV) A PS.444.3 MILLION DECREASE IN INCOME TAXES, AND V) A PS.549.5 MILLION DECREASE IN CUMULATIVE LOSS EFFECT OF ACCOUNTING CHANGE. THESE FAVORABLE CHANGES WERE PARTIALLY OFFSET BY I) A PS.274.8 MILLION INCREASE IN DEPRECIATION AND AMORTIZATION, II) A PS.215.4 MILLION INCREASE IN INTEGRAL COST OF FINANCING, III) A PS.475.3 MILLION DECREASE IN EQUITY INCOME OF AFFILIATES, AND IV) A PS.844.5 MILLION INCREASE IN MINORITY INTEREST. FOURTH-QUARTER RESULTS AND FULL-YEAR, PRO FORMA RESULTS BY BUSINESS SEGMENT THE FOLLOWING INFORMATION PRESENTS FOURTH-QUARTER RESULTS ENDED DECEMBER 31, 2005 AND 2004 AND FULL-YEAR AND PRO-FORMA RESULTS ENDED DECEMBER 31, 2005 AND 2004, FOR EACH OF OUR BUSINESS SEGMENTS. TELEVISION BROADCASTING FOURTH-QUARTER SALES INCREASED 7.1% TO PS.5,844.6 MILLION COMPARED WITH PS.5,459.0 MILLION IN 2004. FULL-YEAR SALES INCREASED 5.1% TO PS.18,570.8 MILLION COMPARED WITH PS.17,671.9 MILLION IN 2004. THE ANNUAL INCREASE WAS ATTRIBUTABLE TO HIGHER ADVERTISING REVENUES, DRIVEN MAINLY BY OUR TELENOVELAS AND REALITY SHOWS, AS WELL AS BY HIGHER LOCAL SALES. FOURTH-QUARTER OIBDA INCREASED 13.4% TO PS.2,899.2 MILLION COMPARED WITH PS.2,555.9 MILLION IN 2004, AND OIBDA MARGIN REACHED 49.6%. FULL-YEAR OIBDA INCREASED 10.4% TO PS.8,852.6 MILLION COMPARED WITH PS.8,018.8 MILLION IN 2004, AND OIBDA MARGIN REACHED AN ALL-TIME HIGH OF 47.7%, REFLECTING HIGHER SALES AND A MARGINAL INCREASE IN COST OF SALES AND OPERATING EXPENSES. PAY TELEVISION NETWORKS FOURTH-QUARTER SALES INCREASED 47.5% TO PS.322.7 MILLION COMPARED WITH PS.218.8 MILLION IN THE SAME PERIOD OF LAST YEAR. FULL-YEAR SALES INCREASED 34.3% TO PS.1,111.2 MILLION COMPARED WITH PS.827.5 MILLION IN 2004. THE ANNUAL INCREASE REFLECTS I) SALES OF PS.81 MILLION IN TUTV, OUR PAY-TELEVISION JOINT VENTURE WITH UNIVISION; II) HIGHER REVENUES FROM CHANNELS SOLD IN MEXICO AND LATIN AMERICA; AND III) HIGHER ADVERTISING SALES. FOURTH-QUARTER OIBDA ROSE 112.3% TO PS.172.4 MILLION COMPARED WITH PS.81.2 MILLION IN 2004, AND OIBDA MARGIN REACHED 53.4%. FULL-YEAR OIBDA INCREASED 67.9% TO PS.518.1 MILLION COMPARED WITH PS.308.5 MILLION IN 2004, AND OIBDA MARGIN REACHED 46.6%. THESE RESULTS WERE DRIVEN BY HIGHER SALES, WHICH WERE PARTIALLY OFFSET BY AN INCREASE IN COST OF SALES AND OPERATING EXPENSES. TUTV CONTRIBUTED PS.33.8 MILLION TO OIBDA IN 2005. PROGRAMMING EXPORTS FOURTH-QUARTER SALES DECREASED 3.1% TO PS.492.0 MILLION COMPARED WITH PS.507.9 MILLION IN THE SAME PERIOD OF LAST YEAR. FULL-YEAR SALES DECREASED 5.3% TO PS.1,875.9 MILLION COMPARED WITH PS.1,981.2 MILLION IN 2004. THE ANNUAL DECREASE REFLECTS I) A NEGATIVE TRANSLATION EFFECT ON FOREIGN-CURRENCY-DENOMINATED SALES, WHICH AMOUNTED TO PS.151.9 MILLION; AND II) LOWER PROGRAMMING SALES IN EUROPE. THESE DECREASES WERE PARTIALLY OFFSET BY I) A 4.6% INCREASE IN THE ROYALTIES PAID TO THE COMPANY UNDER THE UNIVISION PROGRAM LICENSE AGREEMENT, WHICH AMOUNTED TO US$109.8 MILLION IN 2005 COMPARED WITH US$105 MILLION IN 2004; AND II) HIGHER PROGRAMMING SALES TO ASIA AND AFRICA. FOURTH-QUARTER OIBDA DECREASED 9.2% TO PS.185.7 MILLION COMPARED WITH PS.204.6 MILLION IN 2004, AND OIBDA MARGIN CAME IN AT 37.7%. FULL-YEAR OIBDA DECREASED 11.6% TO PS.668.7 MILLION COMPARED WITH PS.756.1 MILLION IN 2004, AND OIBDA MARGIN DECREASED TO 35.6% FROM 38.2% IN 2004 DUE TO LOWER SALES AND HIGHER OPERATING EXPENSES, WHICH WERE PARTIALLY OFFSET BY LOWER COST OF SALES. PUBLISHING FOURTH-QUARTER SALES INCREASED 14% TO PS.752.9 MILLION COMPARED WITH PS.660.7 MILLION IN THE SAME PERIOD OF LAST YEAR. FULL-YEAR SALES INCREASED 15.8% TO PS.2,505.5 MILLION COMPARED WITH PS.2,163.1 MILLION IN 2004. THE ANNUAL INCREASE REFLECTS HIGHER MAGAZINE CIRCULATION AND AN INCREASE IN ADVERTISING PAGES SOLD BOTH IN MEXICO AND ABROAD. THESE INCREASES WERE PARTIALLY OFFSET BY THE NEGATIVE TRANSLATION EFFECT OF FOREIGN-CURRENCY-DENOMINATED SALES AMOUNTING TO PS.59.6 MILLION. FOURTH-QUARTER OIBDA ROSE 10.5% TO PS.178.6 MILLION COMPARED WITH PS.161.7 MILLION IN 2004, AND OIBDA MARGIN REACHED 23.7%. FULL-YEAR OIBDA INCREASED 9.4% TO PS.480.1 MILLION COMPARED WITH PS.438.9 MILLION IN 2004, AND OIBDA MARGIN WAS 19.2%, DRIVEN BY HIGHER SALES, WHICH WERE PARTIALLY OFFSET BY HIGHER COST OF SALES AND OPERATING EXPENSES. PUBLISHING DISTRIBUTION FOURTH-QUARTER SALES INCREASED 3.6% TO PS.106.1 MILLION COMPARED WITH PS.102.4 MILLION IN THE SAME PERIOD OF LAST YEAR. FULL-YEAR SALES INCREASED 5.5% TO PS.402.2 MILLION COMPARED WITH PS.381.1 MILLION IN 2004. THE ANNUAL INCREASE REFLECTS I) HIGHER CIRCULATION, IN MEXICO AND ABROAD, OF MAGAZINES PUBLISHED BY THE COMPANY; AND II) HIGHER CIRCULATION IN MEXICO OF MAGAZINES PUBLISHED BY THIRD PARTIES. THESE INCREASES WERE PARTIALLY OFFSET BY THE NEGATIVE TRANSLATION EFFECT OF FOREIGN-CURRENCY-DENOMINATED SALES, WHICH AMOUNTED TO PS.15.8 MILLION. FOURTH-QUARTER OIBDA INCREASED TO PS.4.3 MILLION COMPARED WITH A LOSS OF PS.12.8 MILLION IN 2004, AND OIBDA MARGIN REACHED 4.1%. FULL-YEAR OIBDA ROSE TO PS.6.6 MILLION COMPARED WITH A LOSS OF PS.26.2 MILLION IN 2004, AND OIBDA MARGIN REACHED 1.6%, DRIVEN BY HIGHER SALES AND LOWER OPERATING EXPENSES, WHICH WERE PARTIALLY OFFSET BY HIGHER COST OF SALES. SKY MEXICO FOURTH-QUARTER SALES INCREASED 21.7% TO PS.1,558.1 MILLION COMPARED WITH PS.1,280.4 MILLION IN THE SAME PERIOD OF LAST YEAR. FULL-YEAR SALES INCREASED 21.5% TO PS.5,986.5 MILLION COMPARED WITH PS.4,928 MILLION IN 2004. THE ANNUAL INCREASE WAS ATTRIBUTABLE TO A 24.7% INCREASE IN THE SUBSCRIBER BASE AND REVENUES FROM PAY-PER-VIEW, PRIMARILY FROM NON-RECURRING SPORTS EVENTS BROADCASTED ON AN EXCLUSIVE BASIS. AS OF DECEMBER 31, 2005, THE NUMBER OF GROSS ACTIVE SUBSCRIBERS REACHED 1,250,600 (INCLUDING 70,100 COMMERCIAL SUBSCRIBERS), COMPARED WITH 1,002,500 GROSS ACTIVE SUBSCRIBERS (INCLUDING 60,700 COMMERCIAL SUBSCRIBERS) LAST YEAR. FOURTH-QUARTER OIBDA INCREASED 42% TO PS.686.5 MILLION COMPARED WITH PS.483.5 MILLION IN 2004, AND OIBDA MARGIN REACHED 44.1%. FULL-YEAR OIBDA INCREASED 40% TO PS.2,516.8 MILLION COMPARED WITH PS.1,797.4 MILLION IN 2004, AND OIBDA MARGIN REACHED 42%. THESE RESULTS CAME FROM HIGHER SALES, WHICH WERE PARTIALLY OFFSET BY HIGHER COST OF SALES AND OPERATING EXPENSES. IN ADDITION, DURING THE FOURTH QUARTER SKY MEXICO RECOGNIZED A BENEFIT FOR ITS CUMULATIVE TAX-LOSS CARRYFORWARDS AS OF DECEMBER 31, 2005 (BY REVERSING A RELATED VALUATION ALLOWANCE RECOGNIZED IN PRIOR YEARS), IN CONNECTION WITH ITS EXPECTED TAXABLE INCOME POSITION FOR THE NEXT COMING YEARS AND IN ACCORDANCE WITH MEXICAN GAAP BULLETIN D-4, WHICH IS SIMILAR TO STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 109, "ACCOUNTING FOR INCOME TAXES." IN FEBRUARY 2006, SKY MEXICO ("INNOVA") AND ITS PARTNERS COMPLETED THE PREVIOUSLY DISCLOSED TRANSACTIONS BY WHICH AFFILIATES OF THE DIRECTV GROUP, INC. (WHICH IS 34% OWNED BY NEWS CORPORATION), ACQUIRED THE DIRECT AND INDIRECT EQUITY INTERESTS IN INNOVA FORMERLY HELD BY NEWS CORPORATION AND LIBERTY MEDIA. ACCORDINGLY, TELEVISA AND DIRECTV CURRENTLY OWN 52.7% AND 47.3%, RESPECTIVELY, OF THE EQUITY OF INNOVA. IN ADDITION, TELEVISA HAS THE RIGHT TO ACQUIRE TWO-THIRDS OF THE EQUITY INTEREST THAT DIRECTV ACQUIRED FROM LIBERTY MEDIA. IF TELEVISA ELECTS TO ACQUIRE THIS INTEREST, THEN TELEVISA AND DIRECTV WOULD OWN 58.7% AND 41.3%, RESPECTIVELY, OF INNOVA'S EQUITY. CABLE TELEVISION FOURTH-QUARTER SALES INCREASED 28% TO PS.389.9 MILLION COMPARED WITH PS.304.5 MILLION IN THE SAME PERIOD OF LAST YEAR. FULL-YEAR SALES INCREASED 20.6% TO PS.1,405.1 MILLION COMPARED WITH PS.1,165.5 MILLION IN 2004. THE ANNUAL INCREASE WAS ATTRIBUTABLE TO I) AN 18.9% INCREASE IN THE SUBSCRIBER BASE, WHICH, AS OF DECEMBER 31, 2005, REACHED 422,088 (INCLUDING 283,207 DIGITAL SUBSCRIBERS) COMPARED WITH LAST YEAR'S SUBSCRIBER BASE OF 355,017 (INCLUDING 122,975 DIGITAL SUBSCRIBERS); II) A 130.4% INCREASE IN BROADBAND SUBSCRIBERS TO 60,986 COMPARED WITH 26,466 REPORTED LAST YEAR; AND III) A 6% RATE INCREASE IN CABLEVISION VIDEO SERVICE PACKAGES EFFECTIVE MARCH 1, 2005. FOURTH-QUARTER OIBDA INCREASED 78.1% TO PS.171.5 MILLION COMPARED WITH PS.96.3 MILLION IN 2004, AND OIBDA MARGIN REACHED 44%. FULL-YEAR OIBDA INCREASED 32.9% TO PS.489.6 MILLION COMPARED WITH PS.368.4 MILLION IN 2004, AND OIBDA MARGIN REACHED 34.8%. THESE RESULTS REFLECTED HIGHER SALES, WHICH WERE PARTIALLY OFFSET BY HIGHER COST OF SALES AND OPERATING EXPENSES. RADIO FOURTH-QUARTER SALES INCREASED 11.4% TO PS.107.8 MILLION COMPARED WITH PS.96.8 MILLION IN THE SAME PERIOD OF LAST YEAR. FULL-YEAR SALES INCREASED 12.8% TO PS.344.7 MILLION COMPARED WITH PS.305.6 MILLION IN 2004. THE ANNUAL INCREASE CAME FROM HIGHER ADVERTISING TIME SOLD, MAINLY IN OUR NEWS AND SPORTS PROGRAMS, AS WELL AS FROM SALES GENERATED BY OUR AFFILIATION AGREEMENT WITH RADIORAMA. FOURTH-QUARTER OIBDA INCREASED 21.3% TO PS.25.1 MILLION COMPARED WITH PS.20.7 MILLION IN 2004, AND OIBDA MARGIN REACHED 23.3%. FULL-YEAR OIBDA INCREASED 59.1% TO PS.52.2 MILLION COMPARED WITH PS.32.8 MILLION IN 2004, AND OIBDA MARGIN REACHED 15.1%. THESE RESULTS REFLECTED HIGHER SALES, WHICH WERE PARTIALLY OFFSET BY HIGHER COST OF SALES AND OPERATING EXPENSES. OTHER BUSINESSES FOURTH-QUARTER SALES INCREASED 28.5% TO PS.333.0 MILLION COMPARED WITH PS.259.2 MILLION IN THE SAME PERIOD OF LAST YEAR. FULL-YEAR SALES INCREASED 4.6% TO PS.1,324.3 MILLION COMPARED WITH PS.1,266.3 MILLION IN 2004. THE ANNUAL INCREASE WAS ATTRIBUTABLE TO HIGHER SALES IN OUR SPORTS BUSINESS, AS WELL AS IN OUR ESMAS.COM INTERNET PORTAL, INCLUDING SALES RELATED TO OUR SMS MESSAGING SERVICE. THESE INCREASES WERE PARTIALLY OFFSET BY LOWER SALES IN OUR FEATURE-FILM DISTRIBUTION BUSINESS. FOURTH-QUARTER OPERATING LOSS BEFORE DEPRECIATION AND AMORTIZATION INCREASED TO PS.104.1 MILLION COMPARED WITH A LOSS OF PS.3.9 MILLION IN 2004. FULL-YEAR OPERATING LOSS BEFORE DEPRECIATION AND AMORTIZATION INCREASED TO PS.180.4 MILLION COMPARED WITH PS.91.9 MILLION IN 2004. THESE RESULTS WERE ATTRIBUTABLE TO HIGHER COST OF SALES AND OPERATING EXPENSES, WHICH WERE PARTIALLY OFFSET BY HIGHER SALES. INTERSEGMENT SALES INTERSEGMENT SALES FOR 2005 AND 2004 AMOUNTED TO PS.1,045.2 MILLION AND PS.891.0 MILLION, RESPECTIVELY. CORPORATE EXPENSES CORPORATE EXPENSES FOR 2005 AND 2004 AMOUNTED TO PS.182.5 MILLION AND PS.161.2 MILLION, RESPECTIVELY. DISPOSED OPERATIONS THE RESULTS OF OPERATIONS OF THE COMPANY'S NATIONWIDE PAGING AND SPORTS BUSINESSES ARE PRESENTED AS DISPOSED OPERATIONS IN 2004. SALES OF DISPOSED OPERATIONS IN 2004 AMOUNTED TO PS.281.1 MILLION. OPERATING LOSS BEFORE DEPRECIATION AND AMORTIZATION OF DISPOSED OPERATIONS AMOUNTED TO PS.40.2 MILLION IN 2004. NON-OPERATING RESULTS INTEGRAL COST OF FINANCING THE EXPENSE ATTRIBUTABLE TO THE INTEGRAL COST OF FINANCING INCREASED BY PS.215.4 MILLION, OR 13.7%, TO PS.1,782.1 MILLION IN 2005 COMPARED WITH PS.1,566.7 MILLION IN 2004. THIS INCREASE REFLECTED PRIMARILY A PS.632.4 MILLION INCREASE IN NET FOREIGN-EXCHANGE LOSS RESULTING PRIMARILY FROM THE DIFFERENCE BETWEEN THE SPOT RATE AND THE FOREIGN-EXCHANGE RATE OF THE COUPON SWAPS ENTERED INTO BY US TO SWAP INTO FIXED MEXICAN PESOS UP TO FIVE YEARS OF US-DOLLAR-DENOMINATED COUPONS OF A PORTION OF OUR US-DOLLAR-DENOMINATED OUTSTANDING INDEBTEDNESS, IN CONJUNCTION WITH A 4.69% APPRECIATION OF THE MEXICAN PESO AGAINST THE US DOLLAR IN 2005 COMPARED WITH A 0.68% APPRECIATION OF THE MEXICAN PESO AGAINST THE US DOLLAR IN 2004. THIS UNFAVORABLE VARIANCE WAS PARTIALLY OFFSET BY I) A PS.30.7 MILLION DECREASE IN INTEREST EXPENSE, DUE PRIMARILY TO A NET DECREASE IN THE AVERAGE AMOUNT OF OUR TOTAL CONSOLIDATED DEBT; II) A PS.253.7 MILLION INCREASE IN INTEREST INCOME IN CONNECTION WITH A HIGHER AVERAGE AMOUNT OF TEMPORARY INVESTMENTS AND HIGHER INTEREST RATES IN 2005 COMPARED WITH LAST YEAR; AND III) A PS.132.6 MILLION INCREASE IN GAIN FROM MONETARY POSITION RESULTING PRIMARILY FROM A HIGHER NET LIABILITY POSITION IN 2005 COMPARED WITH 2004, WHICH WAS PARTIALLY OFFSET BY LOWER ANNUAL INFLATION IN 2005 (3.33%) COMPARED WITH 2004 (5.19%). RESTRUCTURING AND NON-RECURRING CHARGES RESTRUCTURING AND NON-RECURRING CHARGES DECREASED BY PS.178.5 MILLION, OR 43.7%, TO PS.229.9 MILLION IN 2005 COMPARED WITH PS.408.4 MILLION IN 2004. THIS DECREASE REFLECTED PRIMARILY THE RECOGNITION IN 2004 OF NON-RECURRING IMPAIRMENT ADJUSTMENTS TO THE CARRYING VALUE OF CERTAIN GOODWILL AND TRADEMARKS, AS WELL AS A DECREASE IN 2005 OF RESTRUCTURING CHARGES IN CONNECTION WITH WORK-FORCE REDUCTIONS. THESE FAVORABLE VARIANCES WERE PARTIALLY OFFSET BY CERTAIN NON-RECURRENT EXPENSES INCURRED IN CONNECTION WITH THE PREPAYMENT IN MARCH 2005 OF A PORTION OF OUR UDI-DENOMINATED NOTES DUE 2007 AND OUR SENIOR NOTES DUE 2011. OTHER EXPENSE, NET OTHER EXPENSE, NET, DECREASED BY PS.68 MILLION, OR 12.8%, TO PS.464.2 MILLION IN 2005, COMPARED WITH PS.532.2 MILLION IN 2004. THIS DECREASE REFLECTED PRIMARILY A LOWER EXPENSE IN DONATIONS AND ADVISORY AND PROFESSIONAL SERVICES. INCOME TAX INCOME TAX DECREASED BY PS.444.3 MILLION, OR 36.6%, TO PS.771.2 MILLION IN 2005 COMPARED WITH PS.1,215.5 MILLION IN 2004. THIS DECREASE REFLECTED A FAVORABLE EFFECT IN CONSOLIDATED DEFERRED INCOME TAX, PRIMARILY IN CONJUNCTION WITH THE BENEFIT FOR CUMULATIVE TAX-LOSS CARRYFORWARDS RECOGNIZED BY SKY MEXICO AT DECEMBER 31, 2005, AS A RESULT OF THE EXPECTED TAXABLE INCOME POSITION OF SKY MEXICO FOR THE NEXT FEW YEARS. EQUITY IN INCOME OF AFFILIATES EQUITY IN INCOME OF AFFILIATES DECREASED BY PS.475.3 MILLION, OR 74.8%, TO PS.160.2 MILLION IN 2005 COMPARED WITH PS.635.5 MILLION IN 2004. THIS DECREASE REFLECTED PRIMARILY THE ABSENCE OF THE EQUITY INCOME RECOGNIZED IN 2004 DUE TO THE REVERSAL OF PREVIOUS EQUITY LOSSES RECOGNIZED IN EXCESS OF OUR INVESTMENT IN SKY MULTI-COUNTRY PARTNERS ("MCOP") IN CONNECTION WITH THE RELEASE OF OUR GUARANTEE OF SATELLITE TRANSPONDER PAYMENTS OF MCOP. THE DECREASE IS ALSO THE RESULT OF A REDUCTION IN EQUITY INCOME OF UNIVISION AND OCESA ENTRETENIMIENTO, OUR LIVE-ENTERTAINMENT JOINT VENTURE WITH CORPORACION INTERAMERICANA DE ENTRETENIMIENTO, IN WHICH WE HAVE A 40% EQUITY PARTICIPATION. CUMULATIVE LOSS EFFECT OF ACCOUNTING CHANGE IN 2005, THIS LINE REFLECTED I) THE CUMULATIVE LOSS EFFECT OF PS.323.7 MILLION IN CONNECTION WITH THE ACCRUAL FOR SHARE-BASED COMPENSATION EXPENSE AT DECEMBER 31, 2005, FOR BENEFITS GRANTED TO EXECUTIVES AND EMPLOYEES UNDER THE TERMS OF OUR STOCK PURCHASE PLAN AND LONG-TERM RETENTION PLAN, AS A RESULT OF THE ADOPTION, AS OF THAT DATE, OF THE INTERNATIONAL FINANCIAL REPORTING STANDARD 2, "SHARE-BASED PAYMENT," ISSUED BY THE INTERNATIONAL ACCOUNTING STANDARDS BOARD; AND II) THE CUMULATIVE LOSS EFFECT OF PS.182.4 MILLION, NET OF AN INCOME-TAX BENEFIT OF PS.78.2 MILLION, AT JANUARY 1, 2005, IN CONNECTION WITH THE ADOPTION, AS OF THAT DATE, OF THE GUIDELINES FOR RECOGNITION OF SEVERANCE PAYMENTS IN REVISED BULLETIN D-3, "LABOR OBLIGATIONS," ISSUED BY THE MEXICAN INSTITUTE OF PUBLIC ACCOUNTANTS. IN 2004, THIS LINE REFLECTED THE CUMULATIVE LOSS EFFECT OF PS.1,055.6 MILLION, NET OF AN INCOME-TAX BENEFIT OF PS.319.4 MILLION, IN CONNECTION WITH THE CONSOLIDATION OF SKY MEXICO IN OUR FINANCIAL STATEMENTS BEGINNING APRIL 1, 2004, AS A RESULT OF THE ADOPTION, AS OF THAT DATE, OF FINANCIAL ACCOUNTING STANDARDS BOARD INTERPRETATION NO. 46, "CONSOLIDATION OF VARIABLE INTEREST ENTITIES," ISSUED BY THE US FINANCIAL ACCOUNTING STANDARDS BOARD. MINORITY INTEREST MINORITY INTEREST IN CONSOLIDATED NET INCOME INCREASED BY PS.844.5 MILLION TO PS.1,084 MILLION IN 2005 COMPARED WITH PS.239.5 MILLION IN 2004. THIS INCREASE REFLECTED PRIMARILY THE PORTION OF NET INCOME ATTRIBUTABLE TO THE INTEREST HELD BY MINORITY SHAREHOLDERS IN SKY MEXICO, WHICH WE BEGAN CONSOLIDATING IN OUR FINANCIAL STATEMENTS IN APRIL 2004. OTHER RELEVANT INFORMATION CAPITAL EXPENDITURES AND INVESTMENTS IN 2005 OUR CAPITAL EXPENDITURES TOTALED US$248.3 MILLION, INCLUDING US$51.1 MILLION FOR OUR CABLE TELEVISION SEGMENT, US$109.2 MILLION FOR SKY MEXICO, AND US$88 MILLION FOR OUR TELEVISION BROADCASTING AND OTHER BUSINESS UNITS. IN ADDITION, IN THE FOURTH QUARTER OF 2005, WE MADE A CAPITAL CONTRIBUTION OF US$25 MILLION IN VOLARIS, A NEW, LOW-COST-CARRIER AIRLINE WITH A CONCESSION TO OPERATE IN MEXICO. VOLARIS WILL BEGIN OPERATIONS IN MARCH 2006. DEBT THE TOTAL CONSOLIDATED DEBT AMOUNTED TO PS.18,477.7 MILLION AND PS.22,982.1 MILLION AS OF DECEMBER 31, 2005 AND 2004, RESPECTIVELY, WICH INCLUDED A CURRENT PORTION OF LONG-TERM DEBT IN THE AMOUNT OF PS.340.5 MILLION AND PS.3,407.0 MILLION, RESPECTIVELY. ADDITIONALLY, SKY MEXICO HAD A SATELLITE TRANSPONDER LEASE OBLIGATION IN THE AMOUNT OF PS.1,262.5 MILLION AND PS.1,441.9 MILLION AS OF DECEMBER 31, 2005 AND 2004, RESPECTIVELY, WHICH INCLUDED A CURRENT PORTION OF PS.75.6 MILLION AND PS.73.1 MILLION, RESPECTIVELY. AS OF DECEMBER 31, 2005 AND 2004, OUR CONSOLIDATED NET DEBT WAS PS.3,698.6 MILLION AND PS.5,786.2 MILLION, RESPECTIVELY. SHARE BUYBACK PROGRAM FROM JANUARY 1 THROUGH DECEMBER 31, 2005, WE REPURCHASED APPROXIMATELY 31.2 MILLION CPOS FOR PS.1,043.6 MILLION IN NOMINAL TERMS. DURING 2006, YEAR-TO-DATE, WE HAVE REPURCHASED APPROXIMATELY 2.2 MILLION CPOS FOR PS.95.4 MILLION IN NOMINAL TERMS. ADVERTISING SALES PLAN AS OF DECEMBER 31, 2005, WE HAD RECEIVED AGGREGATE UPFRONT ADVERTISING DEPOSITS FOR TELEVISION ADVERTISING OF APPROXIMATELY PS.14,232.7 MILLION IN NOMINAL TERMS, REPRESENTING A 2% INCREASE IN REAL TERMS COMPARED WITH THE PRIOR YEAR. APPROXIMATELY 57.5% OF THE ADVANCE DEPOSITS AS OF DECEMBER 31, 2005, WERE IN THE FORM OF SHORT-TERM, NON-INTEREST-BEARING NOTES RECEIVABLE MATURING THE FOLLOWING YEAR, WITH THE REMAINDER CONSISTING OF CASH DEPOSITS. THE WEIGHTED-AVERAGE MATURITY OF THESE NOTES WAS 3.1 MONTHS. TELEVISION RATINGS AND AUDIENCE SHARE NATIONAL URBAN RATINGS AND AUDIENCE SHARE REPORTED BY IBOPE CONFIRM THAT, IN 2005, TELEVISA CONTINUED TO DELIVER STRONG RATINGS AND AUDIENCE SHARES. DURING WEEKDAY PRIME TIME (19:00 TO 23:00, MONDAY TO FRIDAY), AUDIENCE SHARE AMOUNTED TO 69%; IN PRIME TIME (16:00 TO 23:00, MONDAY TO SUNDAY), AUDIENCE SHARE AMOUNTED TO 68.5%; AND IN SIGN-ON TO SIGN-OFF (6:00 TO 24:00, MONDAY TO SUNDAY), AUDIENCE SHARE AMOUNTED TO 70.2%. IN 2005, TELEVISA AIRED 87% OF THE TOP-100 RATED PROGRAMS OUTLOOK FOR 2006 IN OUR TELEVISION BROADCASTING BUSINESS, WE EXPECT HIGH-SINGLE-DIGIT SALES GROWTH AND OIBDA MARGIN REACHING 49% FOR THE FULL-YEAR 2006. ON A CONSOLIDATED BASIS, WE EXPECT OUR OIBDA MARGIN TO EXCEED 40% FOR THE FULL-YEAR 2006. ABOUT TELEVISA GRUPO TELEVISA, S.A. IS THE LARGEST MEDIA COMPANY IN THE SPANISH-SPEAKING WORLD AND A MAJOR PARTICIPANT IN THE INTERNATIONAL ENTERTAINMENT BUSINESS. IT HAS INTERESTS IN TELEVISION PRODUCTION AND BROADCASTING, PRODUCTION OF PAY-TELEVISION NETWORKS, INTERNATIONAL DISTRIBUTION OF TELEVISION PROGRAMMING, DIRECT-TO-HOME SATELLITE SERVICES, PUBLISHING AND PUBLISHING DISTRIBUTION, CABLE TELEVISION, RADIO PRODUCTION AND BROADCASTING, PROFESSIONAL SPORTS AND LIVE ENTERTAINMENT, FEATURE-FILM PRODUCTION AND DISTRIBUTION, AND THE OPERATION OF A HORIZONTAL INTERNET PORTAL. GRUPO TELEVISA ALSO OWNS AN UNCONSOLIDATED EQUITY STAKE IN UNIVISION, THE LEADING SPANISH-LANGUAGE MEDIA COMPANY IN THE UNITED STATES. DISCLAIMER THIS ANNEX 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 ANNEX 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 ANNEX 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. THE PRO-FORMA INFORMATION IS PRESENTED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT PURPORT TO REPRESENT WHAT OUR FINANCIAL POSITION OR RESULTS OF OPERATIONS WOULD HAVE BEEN HAD RECOGNITION OF SALES AND COST OF GOODS SOLD BEEN REALIZED DURING THE SPECIFIED PERIODS. FURTHERMORE, THE READER SHOULD NOT RELY ON THE PRO-FORMA INFORMATION AS AN INDICATION OF THE RESULTS OF OPERATIONS OF FUTURE PERIODS. FINANCIAL STATEMENT NOTES (1) ANNEX 2 CONSOLIDATED FINAL PRINTING - ----------------------------------------------------------------------------- GRUPO TELEVISA, S.A. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004 (IN THOUSANDS OF MEXICAN PESOS IN PURCHASING POWER AS OF DECEMBER 31, 2005, EXCEPT PER SHARE, PER CPO AND PER UDI VALUES) 1. ACCOUNTING POLICIES: THE CONDENSED FINANCIAL STATEMENTS OF GRUPO TELEVISA, S.A. (THE "COMPANY") AND ITS CONSOLIDATED SUBSIDIARIES (COLLECTIVELLY, THE "GROUP"), AS OF DECEMBER 31, 2005 AND 2004, AND FOR THE YEARS ENDED ON THOSE DATES, ARE UNAUDITED. IN THE OPINION OF MANAGEMENT, ALL ADJUSTMENTS (CONSISTING PRINCIPALLY OF NORMAL RECURRING ADJUSTMENTS) NECESSARY FOR A FAIR PRESENTATION OF THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS HAVE BEEN INCLUDED THEREIN. FOR PURPOSES OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, CERTAIN INFORMATION AND DISCLOSURES, NORMALLY INCLUDED IN FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH MEXICAN GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ("MEXICAN GAAP"), HAVE BEEN CONDENSED OR OMITTED. THESE CONDENSED CONSOLIDATED STATEMENTS SHOULD BE READ IN CONJUNCTION WITH THE GROUP'S CONSOLIDATED AND AUDITED FINANCIAL STATEMENTS AND NOTES THERETO FOR THE YEAR ENDED DECEMBER 31, 2004, WHICH INCLUDE, AMONG OTHER DISCLOSURES, THE GROUP'S MOST SIGNIFICANT ACCOUNTING POLICIES, WHICH HAVE BEEN APPLIED ON A CONSISTENT BASIS FOR THE YEAR ENDED DECEMBER 31, 2005, EXCEPT FOR THE MATTERS DISCUSSED IN THE FOLLOWING PARAGRAPHS. EFFECTIVE JANUARY 1, 2005, THE GROUP ADOPTED THE PROVISIONS FOR SEVERANCE OBLIGATIONS REQUIRED BY THE REVISED BULLETIN D-3, "LABOR OBLIGATIONS" ISSUED BY THE MEXICAN INSTITUTE OF PUBLIC ACCOUNTANTS ("MIPA"). BULLETIN D-3 REQUIRES THAT SEVERANCE OBLIGATIONS TO DISMISSED PERSONNEL, OTHER THAN THOSE ARISING FROM RESTRUCTURINGS, BE RECOGNIZED BASED UPON ACTUARIAL CALCULATIONS (SEE NOTE 11). THROUGH DECEMBER 31, 2004, SEVERANCE OBLIGATIONS TO DISMISSED PERSONNEL WERE CHARGED BY THE GROUP TO INCOME IN THE YEAR IN WHICH THEY WERE INCCURRED. EFFECTIVE DECEMBER 31, 2005, THE GROUP ADOPTED THE GUIDELINES OF THE INTERNATIONAL FINANCIAL REPORTING STANDARD 2 ("IFRS 2"), "SHARE-BASED PAYMENT," ISSUED BY THE INTERNATIONAL ACCOUNTING STANDARDS BOARD. IFRS 2 REQUIRES ACCRUING FOR SHARE-BASED COMPENSATION EXPENSE, WHICH IS MEASURED WHEN EQUITY BENEFITS ARE GRANTED TO OFFICERS AND EMPLOYEES UNDER THE TERMS OF THE GROUP'S STOCK PURCHASE PLAN AND LONG-TERM RETENTION PLAN (SEE NOTES 5 AND 11). BEFORE DECEMBER 31, 2005, THE GROUP RECOGNIZED EQUITY COMPENSATION BENEFITS IN CONSOLIDATED STOCKHOLDERS' EQUITY, WHEN BENEFITS BECAME VESTED. 2. PROPERTY, PLANT AND EQUIPMENT: PROPERTY, PLANT AND EQUIPMENT AS OF DECEMBER 31, CONSISTED OF: 2005 2004 -------------- ------------- BUILDINGS Ps. 7,964,833 Ps. 7,807,516 BUILDING IMPROVEMENTS 1,582,373 1,720,042 TECHNICAL EQUIPMENT 17,970,490 17,810,157 SATELLITE TRANSPONDERS 1,636,152 1,714,647 FURNITURE AND FIXTURES 500,070 596,442 TRANSPORTATION EQUIPMENT 1,105,876 1,172,949 COMPUTER EQUIPMENT 1,413,731 1,488,757 -------------- ------------- 32,173,525 32,310,510 ACCUMULATED DEPRECIATION (17,174,543) (16,993,039) -------------- ------------- 14,998,982 15,317,471 LAND 3,820,812 3,827,822 CONSTRUCTION AND PROJECTS IN PROGRESS 908,753 652,805 -------------- ------------- Ps.19,728,547 Ps.19,798,098 ============== ============= DEPRECIATION CHARGED TO INCOME FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004, WAS PS.2,084,345 AND PS.1,870,125, RESPECTIVELY. 3. LONG-TERM DEBT SECURITIES: AS OF DECEMBER 31, THE GROUP'S CONSOLIDATED LONG-TERM DEBT SECURITIES OUTSTANDING WERE AS FOLLOWS:
2005 2004 -------------------------------- ----------------------------- U.S. U.S. DOLLAR DOLLAR PRINCIPAL PRINCIPAL AMOUNTS MEXICAN AMOUNTS MEXICAN LONG-TERM DEBT SECURITIES (THOUSANDS) PESOS (THOUSANDS) PESOS ------------------------- -------------- -------------- ------------ ------------ 11.875% SERIES "B" SENIOR NOTES DUE 2006 (A) $ 5,343 Ps. 56,777 $ 5,343 Ps. 61,554 8.625% SENIOR NOTES DUE 2005 (B) - - 200,000 2,304,113 8.000% SENIOR NOTES DUE 2011 (B) (C) 75,484 802,131 300,000 3,456,169 6.625% SENIOR NOTES DUE 2025 (B) (C) 600,000 6,375,900 - - 8.500% SENIOR NOTES DUE 2032 (B) 300,000 3,187,950 300,000 3,456,169 12.875% SENIOR NOTES DUE 2007 - - 88,000 1,013,809 9.375% SENIOR NOTES DUE 2013 (D) 300,000 3,187,950 300,000 3,456,169 -------------- ---------------- ------------ --------------- $ 1,280,827 13,610,708 $ 1,193,343 13,747,983 ============== ============ 8.15% UDI-DENOMINATED NOTES DUE 2007 (C) (E) 941,071 3,966,662 ---------------- --------------- Ps. 14,551,779 Ps. 17,714,645 ================ =============== (A) THESE SECURITIES ARE UNSECURED, UNSUBORDINATED OBLIGATIONS OF THE COMPANY, RANK PARI PASSU IN RIGHT OF PAYMENT WITH ALL EXISTING AND FUTURE UNSECURED, UNSUBORDINATED OBLIGATIONS OF THE COMPANY, ARE SENIOR IN RIGHT OF PAYMENT TO ALL FUTURE SUBORDINATED INDEBTEDNESS OF THE COMPANY, AND ARE EFFECTIVELY SUBORDINATED TO ALL EXISTING AND FUTURE LIABILITIES OF THE COMPANY'S SUBSIDIARIES. INTEREST ON THESE SECURITIES, INCLUDING ADDITIONAL AMOUNTS PAYABLE IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 12.49% PER ANNUM AND IS PAYABLE SEMI-ANNUALLY. (B) THESE SENIOR NOTES ARE UNSECURED OBLIGATIONS OF THE COMPANY, RANK EQUALLY IN RIGHT OF PAYMENT WITH ALL EXISTING AND FUTURE UNSECURED AND UNSUBORDINATED INDEBTEDNESS OF THE COMPANY, AND ARE JUNIOR IN RIGHT OF PAYMENT TO ALL OF THE EXISTING AND FUTURE LIABILITIES OF THE COMPANY'S SUBSIDIARIES. INTEREST ON SENIOR NOTES DUE 2005, 2011, 2025 AND 2032, INCLUDING ADDITIONAL AMOUNTS PAYABLE IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 9.07%, 8.41%, 6.97% AND 8.94% PER ANNUM, RESPECTIVELY, AND IS PAYABLE SEMI-ANNUALLY. THESE SENIOR NOTES MAY NOT BE REDEEMED PRIOR TO MATURITY, EXCEPT IN THE EVENT OF CERTAIN CHANGES IN LAW AFFECTING THE MEXICAN WITHHOLDING TAX TREATMENT OF CERTAIN PAYMENTS ON THE SECURITIES, IN WHICH CASE THE SECURITIES WILL BE REDEEMABLE, AS A WHOLE BUT NOT IN PART, AT THE OPTION OF THE COMPANY. THE SENIOR NOTES DUE 2011 AND 2032 WERE PRICED AT 98.793% AND 99.431%, RESPECTIVELY, FOR A YIELD TO MATURITY OF 8.179% AND 8.553%, RESPECTIVELY. THE AGREEMENT OF THESE SENIOR NOTES CONTAINS CERTAIN COVENANTS THAT LIMIT THE ABILITY OF THE COMPANY AND CERTAIN RESTRICTED SUBSIDIARIES ENGAGED IN TELEVISION BROADCASTING, PAY TELEVISION NETWORKS AND PROGRAMMING EXPORTS, TO INCUR OR ASSUME LIENS, PERFORM SALE AND LEASEBACK TRANSACTIONS, AND CONSUMMATE CERTAIN MERGERS, CONSOLIDATIONS AND SIMILAR TRANSACTIONS. SUBSTANTIALLY ALL OF THESE SENIOR NOTES ARE REGISTERED WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION. (C) IN MARCH AND MAY 2005, THE COMPANY ISSUED SENIOR NOTES DUE 2025 IN THE AGGREGATE AMOUNT OF U.S.$400 MILLION AND U.S.$200 MILLION, RESPECTIVELY, WHICH WERE PRICED AT 98.081% AND 98.632%, RESPECTIVELY, FOR A YIELD TO MATURITY OF 6.802% AND 6.787%, RESPECTIVELY. THE NET PROCEEDS OF THE U.S.$400 MILLION OFFERING, TOGETHER WITH CASH ON HAND, WERE USED TO FUND THE GROUP'S TENDER OFFERS MADE AND EXPIRED IN MARCH 2005 FOR ANY OR ALL OF THE SENIOR NOTES DUE 2011 AND THE MEXICAN PESOS EQUIVALENT OF UDI-DENOMINATED NOTES DUE 2007, AND PREPAID PRINCIPAL AMOUNT OF THESE SECURITIES IN THE AMOUNT OF APPROXIMATELY U.S.$222.0 MILLION AND PS.2,935,097 (NOMINAL), RESPECTIVELY, REPRESENTING APPROXIMATELY 74% AND 76% OF THE OUTSTANDING PRINCIPAL AMOUNT OF THESE SECURITIES, RESPECTIVELY. THE NET PROCEEDS OF THE U.S.$200 MILLION ISSUANCE WERE USED FOR CORPORATE PURPOSES, INCLUDING THE REPAYMENT OF SOME OF THE GROUP'S OUTSTANDING INDEBTEDNESS (SEE NOTE 14). (D) IN SEPTEMBER 2003, INNOVA COMPLETED THE OFFERING OF THESE SENIOR NOTES, WHICH ARE UNSECURED AND UNSUBORDINATED INDEBTEDNESS OF INNOVA AND CONTAIN CERTAIN RESTRICTIVE COVENANTS FOR INNOVA ON ADDITIONAL INDEBTEDNESS, LIENS, SALES AND LEASEBACKS, RESTRICTED PAYMENTS, ASSETS SALES, AND CERTAIN MERGERS, CONSOLIDATIONS AND SIMILAR TRANSACTIONS. INTEREST ON THESE SENIOR NOTES, INCLUDING ADDITIONAL AMOUNTS PAYABLE IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 9.8580%, AND IS PAYABLE SEMI-ANNUALLY. INNOVA MAY, AT ITS OWN OPTION, REDEEM THESE SENIOR NOTES, IN WHOLE OR IN PART, AT ANY TIME ON OR AFTER SEPTEMBER 19, 2008 AT REDEMPTION PRICES FROM 104.6875% TO 101.5625% BETWEEN SEPTEMBER 19, 2008 THROUGH SEPTEMBER 18, 2011, OR 100% COMMENCING ON SEPTEMBER 19, 2011, PLUS ACCRUED AND UNPAID INTEREST, IF ANY. ADDITIONALLY, ON OR BEFORE SEPTEMBER 19, 2006, INNOVA MAY, AT ITS OWN OPTION AND SUBJECT TO CERTAIN REQUIREMENTS, USE THE PROCEEDS FROM ONE OR MORE QUALIFIED EQUITY OFFERING TO REDEEM UP TO 35% OF THE AGGREGATE PRINCIPAL AMOUNT OF THESE SENIOR NOTES AT 109.375% OF THEIR PRINCIPAL AMOUNT, PLUS ACCRUED AND UNPAID INTEREST. (E) NOTES DENOMINATED IN MEXICAN INVESTMENT UNITS ("UNIDADES DE INVERSION" OR "UDIS"), REPRESENTING 258,711,400 AND 1,086,007,800 UDIS AS OF DECEMBER 31, 2005 AND 2004, RESPECTIVELY. INTEREST ON THESE NOTES IS PAYABLE SEMI-ANNUALLY. THE BALANCE AS OF DECEMBER 31, 2005 AND 2004 INCLUDES RESTAMENT OF PS.226,404 AND PS.866,681, RESPECTIVELY. THE UDI VALUE AS OF DECEMBER 31, 2005, WAS OF PS. 3.637532 PER UDI.
IN 2002, THE GROUP DESIGNATED ITS NET INVESTMENT IN UNIVISION AS AN EFFECTIVE HEDGE OF ITS OUTSTANDING SENIOR NOTES DUE IN 2011 AND 2032 FOR AN AGGREGATE AMOUNT OF U.S.$600.0 MILLION. IN MARCH 2005, IN CONNECTION WITH THE ISSUANCE OF A PORTION OF ITS SENIOR NOTES DUE 2025, AND THE PREPAYMENT OF A PORTION OF ITS SENIOR NOTES DUE 2011, THE GROUP DESIGNATED ITS NET INVESTMENT IN UNIVISION AS AN EFFECTIVE HEDGE OF U.S.$400 MILLION OF THE SENIOR NOTES DUE 2025. CONSEQUENTLY, ANY FOREIGN EXCHANGE GAIN OR LOSS ATTRIBUTABLE TO THIS U.S. DOLLAR LONG-TERM DEBT IS CREDITED OR CHARGED DIRECTLY TO EQUITY (OTHER COMPREHENSIVE INCOME OR LOSS) (SEE NOTE 7). AS OF DECEMBER 31, 2005 AND 2004, THE TOTAL PRINCIPAL AMOUNT OF THE GROUP'S LONG-TERM DEBT BEING HEDGED BY THE GROUP'S NET INVESTMENT IN UNIVISION WAS OF APPROXIMATELY U.S.$775.5 MILLION AND U.S.$600.0 MILLION, RESPECTIVELY. IN JUNE 2005, THE COMPANY REPURCHASED U.S.$2.0 MILLION OF THE OUTSTANDING PRINCIPAL AMOUNT OF SENIOR NOTES DUE 2011 IN THE AMOUNT OF U.S.$2.4 MILLION. IN JANUARY 2006, THE COMPANY REPURCHASED U.S.$3.5 MILLION OF THE OUTSTANDING PRINCIPAL AMOUNT OF SENIOR NOTES DUE 2011 IN THE AMOUNT OF U.S.$4.0 MILLION. ACCORDINGLY, THIS U.S.$3.5 MILLION LONG-TERM DEBT HAS BEEN CLASSIFIED AS SHORT-TERM DEBT IN THE GROUP'S CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2005. 4. CONTINGENCIES: IN JUNE 2003, THE COMPANY WAS NOTIFIED BY THE MEXICAN TAX AUTHORITY OF A FEDERAL TAX CLAIM MADE AGAINST THE COMPANY FOR APPROXIMATELY PS.960,700, INCLUDING PENALTIES AND SURCHARGES, FOR AN ALLEGED ASSETS TAX LIABILITY FOR THE YEAR 1994. THE COMPANY BELIEVES IT HAS MERITORIOUS DEFENSE AGAINST THIS CLAIM. THERE ARE VARIOUS LEGAL ACTIONS AND OTHER CLAIMS PENDING AGAINST THE GROUP INCIDENTAL TO ITS BUSINESSES AND OPERATIONS. IN THE OPINION OF THE GROUP'S MANAGEMENT, NONE OF THESE PROCEEDINGS WILL HAVE A MATERIAL ADVERSE EFFECT ON THE GROUP'S FINANCIAL POSITION OR RESULTS OF OPERATIONS. 5. STOCKHOLDERS' EQUITY: THE MAJORITY STOCKHOLDERS' EQUITY AS OF DECEMBER 31, IS ANALYZED AS FOLLOWS:
2005 2004 ----------------------------- ------------------------------ NOMINAL RESTATED NOMINAL RESTATED PESOS PESOS PESOS PESOS ------------- -------------- --------------- ------------- CAPITAL STOCK ISSUED Ps.2,524,174 Ps.9,889,463 Ps.2,524,174 Ps.9,889,463 ADDITIONAL PAID-IN CAPITAL 3,841,792 4,212,442 3,841,792 4,212,442 LEGAL RESERVE 1,018,068 1,798,387 802,231 1,575,357 RESERVE FOR REPURCHASE OF SHARES 2,255,655 5,744,583 2,255,655 5,744,583 UNAPPROPRIATED EARNINGS 3,285,844 11,834,150 7,738,613 11,917,996 CUMULATIVE GAIN ON EQUITY OF ASSOCIATES 3,383,463 3,850,572 3,475,741 4,054,315 CUMULATIVE EFFECT OF DEFERRED TAXES (2,197,681) (2,986,569) (2,197,681) (2,986,569) ACCUMULATED OTHER COMPREHENSIVE LOSS -- (4,424,715) -- (3,715,195) NET INCOME FOR THE YEAR -- 6,125,542 4,316,743 4,460,607 SHARES REPURCHASED (6,493,138) (7,045,146) (5,834,065) (6,504,449) -------------- -------------- TOTAL MAJORITY STOCKHOLDERS' EQUITY Ps. 28,998,709 Ps. 28,648,550 ============== ==============
IN APRIL, 2004, THE COMPANY'S STOCKHOLDERS APPROVED A DIVIDEND PAYMENT IN THE AMOUNT OF PS.4,114,065 (PS.3,850,000 NOMINAL), WHICH WAS PAID IN CASH ON MAY 21 2004, AS FOLLOWS: A DIVIDEND OF PS.1.21982800845 PER CPO, AND A DIVIDEND OF PS.0.40660933615 PER FORMER SERIES "A" SHARE (NOT IN THE FORM OF A CPO AND BEFORE THE RECAPITALIZATION). IN APRIL, 2004, THE COMPANY'S STOCKHOLDERS APROVED A RESTRUCTURING OF THE COMPANY'S CAPITAL STOCK ("THE RECAPITALIZATION"), WHICH COMPRISED THE FOLLOWING: (I) A 25-FOR-ONE STOCK SPLIT, WHICH BECAME EFFECTIVE ON JULY 26, 2004 (ALL THE COMPANY'S SHARE DATA IN THESE FINANCIAL STATEMENTS ARE PRESENTED ON POST-SPLIT BASIS); (II) THE CREATION OF THE SERIES "B" SHARES; (III) A 14-FOR-25 STOCK DIVIDEND IN THE AMOUNT OF PS.968,262 (NOMINAL OF PS.906,114 ); AND (IV) AN INCREASE IN THE NUMBER OF SHARES REPRESENTED BY EACH OUSTANDING CPO. THE RECAPITALIZATION INCREASED THE NUMBER OF THE COMPANY'S SHARES BY A FACTOR OF 39 ON A PRE-SPLIT BASIS BUT DID NOT AFFECT THE COMPANY'S TOTAL EQUITY OR DILUTE THE EQUITY INTEREST OF ANY SHAREHOLDER. IN CONNECTION WITH THE COMPANY'S RECAPITALIZATION IN JULY 2004, THE COMPANY ISSUED 312,880,056 ADDITIONAL CPOS BY COMBINING 7,822,001,400 SERIES "A" SHARES, 6,883,361,232 SERIES "B" SHARES, 10,950,801,960 SERIES "D" SHARES AND 10,950,801,960 SERIES "L" SHARES, NOT IN THE FORM OF CPOS, WHICH WERE OWNED BY CERTAIN SHAREHOLDERS. ADDITIONALY, IN OCTOBER, 2004, THE COMPANY ISSUED 79,956,795 ADDITIONAL CPOS BY COMBINING 1,998,919,875 SERIES "A" SHARES, 1,759,049,490 SERIES "B" SHARES, 2,798,487,825 SERIES "D" SHARES, AND 2,798,487,825 SERIES "L" SHARES, NOT IN THE FORM OF CPOS, WHICH WERE ACQUIRED BY A COMPANY'S TRUST (EQUIVALENT TO 76,510,876 CPOS) AND A COMPANY'S SUBSIDIARY (EQUIVALENT TO 3,445,919 CPOS). IN APRIL, 2005, THE COMPANY ISSUED 4,285 ADDITIONAL CPOS BY COMBINING 107,125 SERIES "A" SHARES, 94,270 SERIES "B" SHARES, 149,975 SERIES "D" SHARES AND 149,975 SERIES "L" SHARES, NOT IN THE FORM OF CPOS, WHICH WERE ACQUIRED BY A TRUST FOR A GROUP'S PENSION PLAN. IN APRIL 2005, THE COMPANY'S STOCKHOLDERS APPROVED A DIVIDEND PAYMENT IN THE AMOUNT OF PS.1.35 PER CPO, EQUIVALENT TO PS.4,305,789 (PS.4,214,750 NOMINAL), WHICH WAS PAID IN CASH ON MAY 31, 2005. AS OF DECEMBER 31, 2005, THE NUMBER OF SHARES AND CPOS ISSUED, REPURCHASED AND OUTSTANDING IS PRESENTED AS FOLLOWS: SHARES ISSUED REPURCHASED OUTSTANDING - ---------------------- ------------------ ---------------- ----------------- SERIES "A" 124,736,244,175 10,490,391,260 114,245,852,915 SERIES "B" 60,269,682,796 6,299,092,783 53,970,590,013 SERIES "D" 92,133,721,715 6,271,477,644 85,862,244,071 SERIES "L" 92,133,721,715 6,271,477,644 85,862,244,071 ------------------ ---------------- ----------------- 369,273,370,401 29,332,439,331 339,940,931,070 ================== ================ ================= THE COMPANY'S SHARES REPURCHASED, AS WELL AS THEIR NET COST, AS OF DECEMBER 31, 2005, ARE PRESENTED AS A CHARGE TO STOCKHOLDERS' EQUITY, AS FOLLOWS:
A, B, D, AND L SHARES ------------------------------------------------------- IN THE FORM NOT IN THE OF CPOS FORM OF CPOS TOTAL NET COST ------------------------------------------------------------------------- REPURCHASE PROGRAM (1) 5,458,096,800 - 5,458,096,800 PS. (1,463,076) OWNED BY A COMPANY'S SUBSIDIARY (2) (3) 6,554,784,366 537,563,559 7,092,347,925 (1,506,352) ACQUIRED BY A COMPANY'S TRUST (4) 8,951,772,492 7,830,222,114 16,781,994,606 (3,988,479) ADVANCE FOR ACQUISITION OF SHARES (2) (87,239) ========================================================================= 20,964,653,658 8,367,785,673 29,332,439,331 PS. (7,045,146) ========================================================================= (1) IN THE YEAR ENDED DECEMBER 31, 2005, THE COMPANY REPURCHASED 3,645,462,600 SHARES IN THE FORM OF 31,157,800 CPOS , IN THE AMOUNT OF PS. 1,065,165 (PS. 1,043,647 NOMINAL). (2) IN CONNECTION WITH THE STOCK REPURCHASE PLAN. (3) IN MARCH 2005 THE GROUP RELEASED 2,036,135,556 SHARES, IN THE FORM OF 17,402,868 CPOS, IN THE AMOUNT OF APPROXIMATELY PS.167,894, IN CONNECTION WITH THE COMPANY'S STOCK PURCHASE PLAN. ALSO, IN JULY 2005 THE GROUP RELEASED 1,114,850,763 SHARES, IN THE FORM OF 9,528,639 CPOS, IN THE AMOUNT OF APPROXIMATELY PS.144,985, IN CONNECTION WITH SUCH PLAN. (4) IN CONNECTION WITH THE LONG-TERM RETENTION PLAN.
EFFECTIVE DECEMBER 31, 2005, THE GROUP ADOPTED IFRS2, "SHARE-BASED PAYMENT", AND RECOGNIZED A CUMULATIVE LOSS OF ACCOUNTING CHANGE AS OF THAT DATE IN THE AMOUNT OF PS.323,534 AS AN ACCRUAL IN STOCKHOLDERS' EQUITY FOR BENEFITS GRANTED TO EXECUTIVES AND EMPLOYEES UNDER THE TERMS OF THE GROUP'S STOCK PURCHASE PLAN AND LONG-TERM RETENTION PLAN (SEE NOTES 1 AND 11). 6. REPURCHASE OF SHARES: AS OF DECEMBER 31, 2005, THE COMPANY MAINTAINS A RESERVE FOR REPURCHASE OF SHARES, WHICH WAS APPROVED BY THE SHAREHOLDERS OF THE COMPANY IN PRIOR YEARS BY APPROPRIATING FROM ACCUMULATED EARNINGS THE AMOUNT OF PS.7,191,798. THIS RESERVE WAS USED IN 1999, 2000 AND 2003, IN THE AMOUNT OF PS.295,702, PS.661,011 AND PS.490,502, RESPECTIVELY, IN CONNECTION WITH THE REPURCHASE OF SHARES IN THOSE YEARS. IN ACCORDANCE WITH THE MEXICAN SECURITIES LAW, ANY AMOUNT OF SHARES REPURCHASED AND HELD BY THE COMPANY SHOULD BE RECOGNIZED AS A CHARGE TO STOCKHOLDERS' EQUITY, AND ANY CANCELLATION OF SHARES REPURCHASED SHOULD BE RECOGNIZED AS A REDUCTION OF THE COMPANY'S CAPITAL STOCK ISSUED FOR AN AMOUNT PROPORTIONATE TO THE SHARES CANCELLED. 7. INTEGRAL COST OF FINANCING: INTEGRAL COST OF FINANCING FOR THE YEARS ENDED DECEMBER 31, CONSISTED OF: 2005 2004 -------------- -------------- INTEREST EXPENSE (1) Ps. 2,134,499 Ps. 2,165,217 INTEREST INCOME (932,124) (678,391) FOREIGN EXCHANGE LOSS, NET (2) 727,547 95,179 GAIN FROM MONETARY POSITION, NET (3) (147,892) (15,318) -------------- -------------- Ps. 1,782,030 Ps. 1,566,687 ============== ============== (1) INCLUDES RESTATEMENT OF UDIS OF PS.31,775 AND PS.177,845 NET IN 2005 AND 2004, RESPECTIVELY. (2) NET OF THE LOSS OF PS.416,856 IN 2005 AND THE GAIN OF PS.44,064 IN 2004 RESULTING FROM THE FOREIGN EXCHANGE RESULT ATTRIBUTABLE TO CERTAIN LONG-TERM DEBT SECURITIES WHICH ARE HEDGED BY THE GROUP'S NET INVESTMENT IN UNIVISION. (3) THE GAIN OR LOSS FROM MONETARY POSITION REPRESENTS THE EFFECTS OF INFLATION, AS MEASURED BY THE NCPI IN THE CASE OF MEXICAN COMPANIES, OR THE GENERAL INFLATION INDEX OF EACH COUNTRY IN THE CASE OF FOREIGN SUBSIDIARIES, ON THE MONETARY ASSETS AND LIABILITIES AT THE BEGINNING OF EACH MONTH. INCLUDES MONETARY LOSS IN 2005 AND 2004 OF PS.124,082 AND PS.187,800, RESPECTIVELY, ARISING FROM TEMPORARY DIFFERENCES OF NON-MONETARY ITEMS IN CALCULATING DEFERRED INCOME TAX. 8. DEFERRED TAXES: THE DEFERRED INCOME TAX LIABILITY AS OF DECEMBER 31 WAS DERIVED FROM: 2005 2004 -------------- -------------- ASSETS: ACCRUED LIABILITIES Ps. 862,583 Ps. 589,083 GOODWILL 801,307 881,452 TAX LOSS CARRYFORWARDS 872,606 1,029,604 ALLOWANCE FOR DOUBTFUL ACCOUNTS 437,728 428,037 CUSTOMER ADVANCES 1,335,453 1,555,156 -------------- -------------- 4,309,677 4,483,332 -------------- -------------- LIABILITIES: INVENTORIES (222,087) (756,675) PROPERTY, PLANT AND EQUIPMENT - NET (1,091,691) (1,280,202) OTHER ITEMS (1,416,287) (1,298,242) INNOVA (795,808) (1,620,793) -------------- -------------- (3,525,873) (4,955,912) -------------- -------------- DEFERRED INCOME TAX OF MEXICAN COMPANIES 783,804 (472,580) DEFERRED TAX OF FOREIGN SUBSIDIARIES (337,196) (311,586) ASSETS TAX 1,089,203 1,292,295 VALUATION ALLOWANCE (2,008,039) (2,297,632) RECOVERABLE INCOME TAX FROM REPURCHASE OF SHARES 131,035 221,488 -------------- -------------- DEFERRED INCOME TAX LIABILITY (341,193) (1,568,015) EFFECT ON CHANGE OF INCOME TAX RATES 17,953 189,534 -------------- -------------- DEFERRED TAX LIABILITY OF CONTINUING OPERATIONS Ps. (323,240) Ps. (1,378,481) ============== ============== 9. EXTRAORDINARY ITEMS: NO EXTRAORDINARY ITEMS, AS DEFINED BY MEXICAN GAAP BULLETIN A-7 "COMPARABILITY", WERE RECOGNIZED IN INCOME FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004. 10. DISCONTINUED OPERATIONS: NO DISCONTINUED OPERATIONS, AS DEFINED BY MEXICAN GAAP BULLETIN C-15 "IMPAIRMENT IN THE VALUE OF LONG-LIVED ASSETS AND THEIR DISPOSAL," WERE RECOGNIZED IN INCOME FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004. 11. CUMULATIVE EFFECT OF ACCOUNTING CHANGES: EFFECTIVE DECEMBER 31, 2005, IN CONNECTION WITH THE ADOPTION OF THE GUIDELINES OF IFRS 2, "SHARE-BASED PAYMENT", THE GROUP RECOGNIZED IN ITS CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2005, A CUMULATIVE LOSS EFFECT OF ACCOUNTING CHANGE IN THE NET AMOUNT OF PS.323,534 (SEE NOTES 1 AND 5). EFFECTIVE JANUARY 1, 2005, IN CONNECTION WITH THE ADOPTION OF CERTAIN PROVISIONS OF REVISED BULLETIN D-3 (SEE NOTE 1), THE GROUP RECOGNIZED IN ITS CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2005, A CUMULATIVE LOSS EFFECT OF ACCOUNTING CHANGE IN THE AMOUNT OF PS.182,546, NET OF A RELATED INCOME TAX BENEFIT OF PS.78,234. BEGINNING APRIL 1, 2004, THE GROUP ADOPTED THE GUIDELINES OF FIN 46, "CONSOLIDATION OF VARIABLE INTEREST ENTITIES", AND BEGAN TO INCLUDE IN ITS CONSOLIDATED FINANCIAL STATEMENTS THE ASSETS, LIABILITIES AND RESULTS OF OPERATIONS OF SKY MEXICO. AS A RESULT OF THIS ACCOUNTING CHANGE, THE GROUP RECOGNIZED AT APRIL 1, 2004, A CONSOLIDATED CUMULATIVE LOSS EFFECT OF PS.1,055,636, NET OF INCOME TAX IN THE AMOUNT OF PS.319,394, IN ITS CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2004, IN CONNECTION WITH INNOVA'S ACCUMULATED LOSSES NOT RECOGNIZED BY THE GROUP IN PREVIOUS YEARS AND THE FIRST QUARTER OF 2004. 12. QUARTERLY NET RESULTS (HISTORICAL AND RESTATED): THE QUARTERLY NET RESULTS FOR THE FOUR QUARTERS ENDED DECEMBER 31, 2005, ARE AS FOLLOWS:
HISTORICAL NET RESULT (1) RESTATED NET RESULT ------------------------------- INDEX AT END --------------------------------- QUARTER ACCUMULATED QUARTER OF PERIOD ACCUMULATED QUARTER - ------------ -------------- -------------- ------------- --------------- -------------- 1/05 Ps. 594,052 Ps. 594,052 113.438 Ps. 609,045 Ps. 609,045 2/05 1,871,159 1,277,060 113.447 1,918,232 1,309,187 3/05 3,552,138 1,663,877 114.484 3,608,514 1,690,284 4/05 6,125,542 2,517,026 116.301 6,125,542 2,517,026
(1) AS REPORTED IN EACH QUARTER. 13. INFORMATION BY SEGMENTS: INFORMATION BY SEGMENTS FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004, WERE AS FOLLOWS:
INTERSEGMENT CONSOLIDATED OPERATING INCOME TOTAL REVENUES REVENUES REVENUES (LOSS) ---------------- ---------------- ------------------ ---------------- 2005: TELEVISION BROADCASTING Ps. 18,570,795 Ps. 548,423 Ps. 18,022,372 Ps. 7,834,869 PAY TELEVISION NETWORKS 1,111,176 293,042 818, 134 492,160 PROGRAMMING EXPORTS 1,875,916 - 1,875,916 664,162 PUBLISHING 2,505,499 38,571 2,466,928 453,998 PUBLISHING DISTRIBUTION 402,193 10,223 391,970 (15,159) SKY MEXICO 5,986,527 31,945 5,954,582 1,571,787 CABLE TELEVISION 1,405,145 2,884 1,402,261 175,566 RADIO 344,733 51,245 293,488 32,759 OTHER BUSINESSES 1,324,209 68,819 1,255,390 (224,884) ELIMINATIONS AND CORPORATE EXPENSES (1,045,152) (1,045,152) - (182,471) ---------------- ---------------- ----------------- ----------------- CONSOLIDATED TOTAL Ps. 32,481,041 Ps. - Ps. 32,481,041 Ps. 10,802,787 =============== =============== ================= ================= 2004: TELEVISION BROADCASTING Ps. 17,671,898 Ps. 423,566 Ps. 17,248,332 Ps. 6,945,075 PAY TELEVISION NETWORKS 827,472 115,878 711,594 286,999 PROGRAMMING EXPORTS 1,981,205 - 1,981,205 748,676 PUBLISHING 2,163,131 5,145 2,157,986 414,599 PUBLISHING DISTRIBUTION 1,626,435 8,392 1,618,043 (49,952) SKY MEXICO (1) 3,758,154 44,427 3,713,727 797,408 CABLE TELEVISION 1,165,514 3,641 1,161,873 76,791 RADIO 305,623 50,998 254,625 13,271 OTHER BUSINESSES 1,547,428 103,604 1,443,824 (228,651) ELIMINATIONS AND CORPORATE EXPENSES (755,651) (755,651) - (161,173) ---------------- ---------------- ----------------- ----------------- CONSOLIDATED TOTAL Ps. 30,291,209 Ps. - Ps. 30,291,209 Ps. 8,843,043 =============== =============== ================= ================= (1) BEGINNING APRIL 1, 2004, THE GROUP CONSOLIDATES THE FINANCIAL STATEMENTS OF SKY MEXICO.
14. PREPAYMENT OF LONG-TERM DEBT: DURING 2005, THE GROUP PREPAID CERTAIN LONG-TERM NOTES PAYABLE IN THE AGGREGATE PRINCIPAL AMOUNT OF APPROXIMATELY U.S.$5.4 MILLION, WHICH ORIGINALLY MATURED BETWEEN 2007 AND 2009. IN MAY 2005, THE GROUP PREPAID ALL OF THE OUTSTANDING AMOUNTS OF A PS.80.0 MILLION LONG-TERM LOAN, WHICH ORIGINALLY MATURED IN 2006. IN JULY 2005, INNOVA ENTERED INTO A PS.1,012,000 LONG-TERM LOAN WITH THE COMPANY, WITH A FIXED INTEREST RATE OF 10.55% PER ANNUM PAYABLE ON A MONTHLY BASIS AND MATURITIES IN 2010 AND 2011. THE PROCEEDS OF THIS INTERCOMPANY LOAN WERE USED BY INNOVA TO PREPAY ALL OF THE OUTSTANDING AMOUNTS UNDER A SIMILAR CREDIT AGREEMENT WITH A MEXICAN BANK. 15. DISPOSAL OF INTEREST IN DTH TECHCO PARTNERS: IN OCTOBER 2005, IN A SERIES OF RELATED TRANSACTIONS, THE GROUP DISPOSED ITS 30% INTEREST IN DTH TECHCO PARTNERS ("TECHCO"), AND WAS RELEASED OF ANY OBLIGATION IN CONNECTION WITH A GUARANTEE GRANTED BY THE GROUP IN RESPECT OF CERTAIN TECHCO'S INDEBTEDNESS. AS A RESULT OF THIS DISPOSAL, THE GROUP RECOGNIZED A PRETAX LOSS OF APPROXIMATELY PS.160,141 AS OTHER EXPENSE, WHICH PRIMARILY CONSISTED OF THE AGGREGATE AMOUNT OF THE CARRYING VALUE OF THE GROUP'S NET INVESTMENT IN TECHCO, WHICH INCLUDED ALL OF THE OUTSTANDING AMOUNTS RECEIVABLE IN CONNECTION WITH LONG-TERM LOANS MADE BY THE GROUP TO TECHCO. 16. INVESTMENTS IN ASSOCIATES: IN THE FOURTH QUARTER OF 2005, THE GROUP MADE INITIAL CAPITAL CONTRIBUTIONS FOR AN AGGREGATE AMOUNT OF U.S.$25.0 MILLION REPRESENTING A 25% INTEREST IN CONCESIONARIA VUELA COMPANIA DE AVIACION, S.A. DE C.V. ("VOLARIS"), A NEW LOW-COST CARRIER AIRLINE WITH A CONCESSION TO OPERATE IN MEXICO. VOLARIS EXPECTS TO START OPERATIONS IN MARCH 2006. IN THE FOURTH QUARTER OF 2005, THE GROUP ACQUIRED A 40% INTEREST OF THE OUTSTANDING CAPITAL STOCK OF GESTORA DE INVERSIONES AUDIOVISUALES LA SEXTA, S.A.U. ("LA SEXTA") FOR AN AGGREGATE AMOUNT OF APPROXIMATELY 1.2 MILLION EUROS (PS.15,321). LA SEXTA IS A SPANISH COMPANY TO WHICH THE GOVERNMENT OF SPAIN GRANTED A CONCESSION FOR A FREE-TO AIR TELEVISION CHANNEL. LA SEXTA IS EXPECTED TO START OPERATIONS IN THE SECOND QUARTER OF 2006. 17. SKY MEXICO'S SUBSEQUENT EVENT: IN FEBRUARY 2006, SKY MEXICO AND ITS PARTNERS COMPLETED CERTAIN TRANSACTIONS IN CONNECTION WITH A SERIES OF AGREEMENTS ENTERED INTO BY THE GROUP, THE DIRECTV GROUP, INC. ("DIRECTV") AND NEWS CORP. IN OCTOBER 2004, BY WHICH AFFILIATES OF DIRECTV ACQUIRED THE DIRECT AND INDIRECT EQUITY INTERESTS IN SKY MEXICO, FORMERLY HELD BY NEWS CORP. AND LIBERTY MEDIA. ACCORDINGLY, THE GROUP AND DIRECTV CURRENTLY OWN 52.7% AND 47.3%, RESPECTIVELY, OF THE EQUITY OF SKY MEXICO. IN ADDITION, THE GROUP HAS THE RIGHT TO ACQUIRE TWO-THIRDS OF THE EQUITY INTEREST THAT DIRECTV ACQUIRED FROM LIBERTY MEDIA. IF THE GROUP ELECTS TO ACQUIRE THIS INTEREST, THEN THE GROUP AND DIRECTV WOULD OWN 58.7% AND 43.3%, RESPECTIVELY, OF SKY MEXICO'S EQUITY. - - - - - - - - - ANALYSIS OF INVESTMENTS IN SHARES ANNEX 3 CONSOLIDATED FINAL PRINTING
TOTAL AMOUNT % (THOUSANDS OF MEXICAN PESOS) NUMBER OWNERSHIP ---------------------------- COMPANY NAME (1) MAIN ACTIVITIES OF SHARES (2) ACQUISITION BOOK COST VALUE (3) - --------------------------------------------------------------------------------------------------------------------------------- SUBSIDIARIES 1 CORPORATIVO VASCO DE QUIROGA, PROMOTION AND 12,511,529 100.00 2,151,619 1,411,660 S.A. DE C.V. DEVELOPMENT OF COMPANIES 2 CVQ ESPECTACULOS, S.A. DE C.V. PROMOTION AND 13,400,500 100.00 1,641,707 802,187 DEVELOPMENT OF COMPANIES 3 DTH EUROPA, S.A. PROMOTION AND 1,080,182 90.25 780,220 135,412 DEVELOPMENT OF COMPANIES 4 EDITORA FACTUM, S.A. DE C.V. PROMOTION AND 666,569,438 100.00 1,863,734 2,230,509 DEVELOPMENT OF COMPANIES 5 EDITORIAL TELEVISA, S.A. DE C.V. PROMOTION AND 1,037,498 100.00 1,037,498 1,693,201 DEVELOPMENT OF COMPANIES 6 FACTUM MAS, S.A. DE C.V. PROMOTION AND 5,482,020,219 100.00 4,796,047 (1,576,740) DEVELOPMENT OF COMPANIES 7 GRUPO DISTRIBUIDORAS INTERMEX, DISTRIBUTION OF BOOKS 242,378,445 100.00 242,378 407,062 S.A. DE C.V. AND MAGAZINES 8 CAMPUS AMERICA, S.A. DE C.V. PROMOTION AND 418,881,301 100.00 3,784,024 10,541,390 DEVELOPMENT OF COMPANIES 9 PROMO-INDUSTRIAS PROMOTION AND 1,185,147 100.00 67,064 216,815 METROPOLITANAS, S.A. DE C.V. DEVELOPMENT OF COMPANIES 10 SISTEMA RADIOPOLIS, S.A. DE C.V. COMMERCIALIZATION OF 76,070,313 50.00 76,070 241,571 RADIO PROGRAMMING 11 TELEPARABOLAS, S.L. MAINTENANCE OF 1,500 100.00 750 3,806 PARABOLIC DISHES 12 TELESISTEMA MEXICANO, S.A. DE C.V. COMMERCIALIZATION OF 149,442,880 100.00 10,773,295 25,744,317 TELEVISION 13 TELEVISA ARGENTINA, S.A. COMMERCIAL OPERATION 1,425,000 100.00 115,371 33,757 OF TELEVISION 14 TELEVISA JUEGOS, S.A. DE C.V. PROMOTION AND 65,249 100.00 65,249 77,689 DEVELOPMENT OF COMPANIES 15 TELEVISION INDEPENDIENTE DE PROMOTION AND 32,989,789 100.00 2,864,972 5,229,068 MEXICO, S.A. DE C.V. DEVELOPMENT OF COMPANIES 16 CAPITALIZED INTEGRAL COST OF 1 234,145 FINANCING, 1994 17 CAPITALIZED INTEGRAL COST OF 1 422,106 FINANCING, 1995 18 CAPITALIZED INTEGRAL COST OF 1 29,245 FINANCING, 1996 19 CAPITALIZED INTEGRAL COST OF 1 24,058 FINANCING, 1998 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT IN SUBSIDIARIES 30,259,998 47,901,258 - --------------------------------------------------------------------------------------------------------------------------------- ASSOCIATES 1 ARGOS COMUNICACION, S.A. DE C.V. OPERATION AND/OR 33,000,000 15.30 137,000 32,612 BROADCASTING OF T.V. 2 DIBUJOS ANIMADOS MEXICANOS PRODUCTION OF 1,735,560 49.00 4,384 752 DIAMEX, S.A. DE C.V. ANIMATED CARTOONS 3 EDITORIAL CLIO, LIBROS Y VIDEOS, PUBLISHING AND PRINTING 3,227,550 30.00 32,270 16,110 S.A. DE C.V. OF BOOKS AND MAGAZINES. 4 ENDEMOL MEXICO, S.A. DE C.V. COMMERCIALIZATION OF 24,500 49.00 25 13,034 TELEVISION PROGRAMMING 5 EN VIVO ESPECTACULOS, S. DE R.L. LIVE ENTERTAINMENT IN 2 99.49 4,898 1,211 DE C.V. MEXICO 6 MAS FONDOS, S.A. DE C.V. MUTUAL FUND DISTRIBUTION 99,758 46.55 99,758 9,798 COMPANY 7 METROS CUBICOS, S.A. DE C.V. PORTAL INTERNET 2,089,343 18.65 43,031 4,032 8 OCESA ENTRETENIMIENTO, S.A. DE LIVE ENTERTAINMENT IN 14,100,000 40.00 1,095,581 466,379 C.V. MEXICO 9 TELEVISORA DEL YAQUI, S.A. DE C.V. OPERATION AND/OR 4,124,986 15.00 412 6,806 BROADCASTING OF T.V. 10 UNIVISION COMMUNICATIONS, INC. BROADCASTING OF T.V. 30,187,534 9.86 5,602,976 5,698,989 SPANISH PROGRAMS 11 CONTROLADORA VUELA COMPANIA DE AVIACION, S.A. De C.V. CARRIER AIRLINE 15 25.00 270,824 243,560 12 GESTORA DE INVERSIONES COMMERCIALIZATION OF 240,405 40.00 15,321 15,321 AUDIOVISUALES, S.A.U. TELEVISION PROGRAMMING 13 PUBLICIDAD VIRTUAL LATINOAMERICANA, TV ADVERTISING 1 100.00 20,985 (1,105) LTDA SERVICES 14 TELEVISA EMI MUSIC, S.A DE C.V. MUSIC RECORDING 25 50.00 25 (1,035) - --------------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT IN ASSOCIATES 7,327,490 6,506,464 - --------------------------------------------------------------------------------------------------------------------------------- OTHER PERMANENT INVESTMENTS 1,065,580 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL 37,587,488 55,473,302 - ---------------------------------------------------------------------------------------------------------------------------------
ANNEX 5 CREDIT BREAK DOWN (Thousands of Mexican Pesos) CONSOLIDATED FINAL PRINTING
Denominated In Pesos ---------------------------- Credit Type / Institution Amortization Interest Until 1 More Than Date Rate Year 1 Year - -------------------------------------------------------------------------------------------------------- BANKS - -------------------------------------------------------------------------------------------------------- OTHER FINANCIAL ENTITIES BANAMEX, S.A. 4/23/2012 10.35 2,000,000 BANAMEX, S.A. 5/21/2009 9.70 1,162,460 BANAMEX, S.A. 5/1/2008 8.93 240,000 480,000 BANK OF AMERICA 3/31/2010 5.64 SUNTRUST BANK MIAMI, NATIONAL 4/1/2008 4.50 LEASING DE COLOMBIA 6/28/2009 13.37 CORPORACION FINANCIERA DE ARRENDAMIENTO 7/31/2006 17.11 446 BANCO DE BILBAO VIZCAYA, S.A. 1/30/2006 5.86 LEASING DE OCCIDENTE 4/29/2007 17.62 SANTANDER CENTRAL HISPANO LEASING, S.A. 1/24/2006 14.74 - -------------------------------------------------------------------------------------------------------- TOTAL BANKS 240,446 3,642,460 - -------------------------------------------------------------------------------------------------------- STOCK EXCHANGE PRIVATE PLACEMENTS - -------------------------------------------------------------------------------------------------------- UNSECURED DEBT - -------------------------------------------------------------------------------------------------------- HOLDERS 5/13/2006 12.49 HOLDERS 9/13/2011 8.41 HOLDERS 3/11/2032 8.94 HOLDERS 3/18/2025 6.97 HOLDERS 9/19/2013 9.86 UDI-DENOMINATED NOTES 4/13/2007 8.15 941,071 - -------------------------------------------------------------------------------------------------------- TOTAL STOCK EXCHANGE - 941,071 - -------------------------------------------------------------------------------------------------------- SUPPLIERS - -------------------------------------------------------------------------------------------------------- VARIOUS 12/30/2006 1,414,639 - -------------------------------------------------------------------------------------------------------- TOTAL SUPPLIERS 1,414,639 - -------------------------------------------------------------------------------------------------------- OTHER CURRENT LIABILITIES AND OTHER CREDITS - -------------------------------------------------------------------------------------------------------- VARIOUS 9/7/2015 1,965,849 123,767 - -------------------------------------------------------------------------------------------------------- TOTAL OTHER CURRENT LIABILITIES AND OTHER CREDITS 1,965,849 123,767 - -------------------------------------------------------------------------------------------------------- TOTAL 3,620,934 4,707,298 - --------------------------------------------------------------------------------------------------------
Amortization of Credits in Foreign Currency With National Entities (Thousands of $) ----------------------------------------------------------------------------------- Time Interval ----------------------------------------------------------------------------------- Credit Type / Institution Current Until 1 Until 2 Until 3 Until 4 Until 5 Year Year Year Year Year Year - -------------------------------------------------------------------------------------------------------------------------------- BANKS - -------------------------------------------------------------------------------------------------------------------------------- OTHER FINANCIAL ENTITIES BANAMEX, S.A. BANAMEX, S.A. BANAMEX, S.A. BANK OF AMERICA SUNTRUST BANK MIAMI, NATIONAL LEASING DE COLOMBIA CORPORACION FINANCIERA DE ARRENDAMIENTO BANCO DE BILBAO VIZCAYA, S.A. LEASING DE OCCIDENTE SANTANDER CENTRAL HISPANO LEASING, S.A. - -------------------------------------------------------------------------------------------------------------------------------- TOTAL BANKS - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- STOCK EXCHANGE PRIVATE PLACEMENTS UNSECURED DEBT HOLDERS HOLDERS HOLDERS HOLDERS HOLDERS UDI-DENOMINATED NOTES - -------------------------------------------------------------------------------------------------------------------------------- TOTAL STOCK EXCHANGE - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- SUPPLIERS - -------------------------------------------------------------------------------------------------------------------------------- VARIOUS 1,120,626 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL SUPPLIERS - 1,120,626 - -------------------------------------------------------------------------------------------------------------------------------- OTHER CURRENT LIABILITIES AND OTHER CREDITS - -------------------------------------------------------------------------------------------------------------------------------- VARIOUS 0 318,330 201,313 0 0 0 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL OTHER CURRENT LIABILITIES AND OTHER CREDITS - 318,330 201,313 - - - - -------------------------------------------------------------------------------------------------------------------------------- TOTAL - 1,438,956 201,313 - - - - --------------------------------------------------------------------------------------------------------------------------------
Amortization of Credits in Foreign Currency With Foreign Entities (Thousands of $) ----------------------------------------------------------------------------------- Time Interval ----------------------------------------------------------------------------------- Credit Type / Institution Current Until 1 Until 2 Until 3 Until 4 Until 5 Year Year Year Year Year Year - -------------------------------------------------------------------------------------------------------------------------------- BANKS - -------------------------------------------------------------------------------------------------------------------------------- OTHER FINANCIAL ENTITIES BANAMEX, S.A. BANAMEX, S.A. BANAMEX, S.A. BANK OF AMERICA 532 532 532 532 26,824 SUNTRUST BANK MIAMI, NATIONAL 4,251 4,251 4,250 LEASING DE COLOMBIA 360 47 53 178 CORPORACION FINANCIERA DE ARRENDAMIENTO BANCO DE BILBAO VIZCAYA, S.A. 359 LEASING DE OCCIDENTE 183 123 SANTANDER CENTRAL HISPANO LEASING, S.A. 5 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL BANKS - 5,690 4,953 4,835 710 26,824 - -------------------------------------------------------------------------------------------------------------------------------- STOCK EXCHANGE PRIVATE PLACEMENTS UNSECURED DEBT HOLDERS 56,777 HOLDERS 37,544 764,587 HOLDERS 3,187,950 HOLDERS 6,375,900 UDI DENOMINATED-NOTES 3,187,950 HOLDERS - -------------------------------------------------------------------------------------------------------------------------------- TOTAL STOCK EXCHANGE - 94,321 - - - 13,516,387 - -------------------------------------------------------------------------------------------------------------------------------- SUPPLIERS - -------------------------------------------------------------------------------------------------------------------------------- VARIOUS 419,458 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL SUPPLIERS - 419,458 - - - - - -------------------------------------------------------------------------------------------------------------------------------- OTHER CURRENT LIABILITIES AND OTHER CREDITS - -------------------------------------------------------------------------------------------------------------------------------- VARIOUS 0 162,868 221,066 95,051 106,577 900,533 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL OTHER CURRENT LIABILITIES AND OTHER CREDITS - 162,868 221,066 95,051 106,577 900,533 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL - 682,337 226,019 99,886 107,287 14,443,744 - --------------------------------------------------------------------------------------------------------------------------------
NOTES THE EXCHANGE RATES FOR THE CREDITS DENOMINATED IN FOREIGN CURRENCY WERE AS FOLLOWS: $ 10.6265 PESOS PER U.S. DOLLAR 0.0046 PESOS PER COLOMBIAN PESO 12.5864 PESOS PER EURO MONETARY FOREIGN CURRENCY POSITION (Thousands of Mexican Pesos) ANNEX 6 CONSOLIDATED FINAL PRINTING
DOLLARS (1) OTHER CURRENCIES (1) ------------------------------- ------------------------------ TOTAL TRADE BALANCE THOUSANDS THOUSANDS THOUSANDS THOUSANDS THOUSANDS OF DOLLARS OF PESOS OF DOLLARS OF PESOS OF PESOS -------------- -------------- -------------- ------------- ----------------- TOTAL ASSETS 650,314 6,910,562 47,423 503,940 7,414,502 LIABILITIES POSITION 1,589,903 16,895,104 33,317 354,043 17,249,147 SHORT-TERM LIABILITIES POSITION 171,366 1,821,021 32,925 349,877 2,170,898 LONG-TERM LIABILITIES POSITION 1,418,537 15,074,083 392 4,166 15,078,249 - ------------------------------------------------------------------------------------------------------------------------------ NET BALANCE (939,589) (9,984,542) 14,106 149,897 (9,834,645) - ------------------------------------------------------------------------------------------------------------------------------ NOTES (1) THE EXCHANGE RATES USED FOR TRANSLATION WERE AS FOLLOWS : $ 10.6265 PESOS PER U.S. DOLLAR 12.5864 PESOS PER EURO 3.5047 PESOS PER ARGENTINEAN PESO 0.0207 PESOS PER CHILEAN PESO 0.0046 PESOS PER COLOMBIAN PESO 3.0972 PESOS PER PERUVIAN NUEVO SOL 18.4500 PESOS PER POUNDS STERLING 10.6265 PESOS PER ECUADORIAN SUCRE 10.6265 PESOS PER PANAMANIAN BALBOA 0.0049 PESOS PER VENEZUELAN BOLIVAR THIS INFORMATION IS REPRESENTED ON A CONSOLIDATED BASIS AND INCLUDES, ACCORDINGLY, INFORMATION OF FOREIGN SUBSIDIARIES.
RESULT FROM MONETARY POSITION (1) (Thousands of Mexican Pesos) ANNEX 7 CONSOLIDATED FINAL PRINTING
(ASSET) LIABILITY MONTHLY MONTH MONETARY MONETARY MONETARY MONTHLY PROFIT ASSETS LIABILITIES POSITION INFLATION AND (LOSS) - ---------------------------- ---------- ----------- ---------------- --------- ---------- JANUARY 29,889,494 36,654,700 6,765,206 0.00 237 FEBRUARY 24,582,860 29,649,166 5,066,306 0.00 16,876 MARCH 23,783,753 28,449,192 4,665,439 0.00 21,027 APRIL 21,760,070 27,249,798 5,489,728 0.00 19,549 MAY 21,223,758 31,408,680 10,184,921 0.00 (25,585) JUNE 19,749,708 30,545,054 10,795,346 0.00 (10,353) JULY 18,255,578 29,832,858 11,577,280 0.00 45,302 AUGUST 16,658,758 28,896,515 12,237,757 0.00 14,612 SEPTEMBER 13,306,353 26,219,364 12,913,011 0.00 51,742 OCTOBER 12,566,792 25,957,258 13,390,466 0.00 32,860 NOVEMBER 12,424,433 25,636,243 13,211,810 0.00 95,085 DECEMBER 13,126,849 25,787,114 12,660,265 0.00 7,776 RESTATEMENT: - 3,681 CAPITALIZATION: - - FOREIGN CORP.: - (1,812) OTHER - (123,105) - ------------------------------------------------------------------------------------------------------------------------ TOTAL 147,892 - ------------------------------------------------------------------------------------------------------------------------
NOTES THE AMOUNT REFLECTED IN "OTHER" INCLUDES PS. 124,082, FROM MONE- TARY POSITION DERIVED FROM DEFERRED TAXES, WHICH WAS CLASSIFIED IN THE DEFERRED INCOME TAX PROVISION IN ACCORDANCE WITH THE GUIDELINES PROVIDED BY BULLETIN D-4 FOR DEFERRED TAXES. MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA QUARTER: 4 YEAR: 2005 GRUPO TELEVISA, S.A. CONVENANTS ON BONDS AND MEDIUM TERM NOTES LISTED IN STOCK MARKET ANNEX 8 CONSOLIDATED FINAL PRINTING FINANCIAL RESTRICTIONS BASED IN ISSUED DEBT AND/OR TITLE THE AGREEMENTS OF THE U.S.$300 MILLION (OF WHICH APPROXIMATELY U.S.$75.5 MILLION ARE OUTSTANDING AS OF DECEMBER 31, 2005), U.S.$600 MILLION AND U.S.$300 MILLION SENIOR NOTES ISSUED BY GRUPO TELEVISA, S.A. WITH MATURITY IN 2011, 2025 AND 2032, RESPECTIVELY, CONTAIN CERTAIN COVENANTS THAT LIMIT THE ABILITY OF THE COMPANY AND ITS SUBSIDIARIES ENGAGED IN TELEVISION OPERATIONS TO INCUR OR ASSUME LIENS, PERFORM SALE AND LEASEBACK TRANSACTIONS, AND CONSUMMATE CERTAIN MERGERS, CONSOLIDATIONS OR SIMILAR TRANSACTIONS. THE AGREEMENT OF THE U.S.$300 MILLION SENIOR NOTES ISSUED BY INNOVA, S. DE R.L. DE C.V. ("INNOVA") WITH MATURITY IN 2013, CONTAINS CERTAIN COVENANTS THAT LIMIT THE ABILITY OF INNOVA AND ITS RESTRICTED SUBSIDIARIES WITH RESPECT TO INDEBTEDNESS, LIENS, SALES AND LEASEBACKS, RESTRICTED PAYMENTS, ASSET SALES, AND CERTAIN MERGERS, CONSOLIDATIONS AND SIMILAR TRANSACTIONS. ACTUAL SITUATION OF FINANCIAL RESTRICTIONS AT DECEMBER 31, 2005, THE GROUP WAS IN COMPLIANCE WITH THE FINANCIAL RESTRICTIONS OF THE CONTRACTS RELATED TO THE LONG-TERM SENIOR NOTES DESCRIBED ABOVE. ----------------------------------------- C.P. JORGE LUTTEROTH ECHEGOYEN CONTROLLER, VICE-PRESIDENT MEXICO, D.F. FEBRUARY 23, 2006 PLANTS, COMMERCE CENTERS OR DISTRIBUTION CENTERS ANNEX 9 CONSOLIDATED FINAL PRINTING
PLANT OR CENTER ECONOMIC ACTIVITY PLANT UTILIZATION CAPACITY (1) (%) - -------------------------------- ----------------------------------------- --------------- ------------- TELEVISION: 0 0 CORPORATIVO SANTA FE HEADQUARTERS. 0 0 TELEVISA SAN ANGEL PRODUCTION AND BROADCASTING PROGRAMMING. 0 0 TELEVISA CHAPULTEPEC PRODUCTION AND BROADCASTING PROGRAMMING. 0 0 REAL ESTATE LAND AND UNOCCUPIED, BUILDING, 0 0 PARKING LOTS, ADMINISTRATIVE 0 0 OFFICES, RADIO ANTENNAS, 0 0 TELEVISION STATIONS FACILITIES. 0 0 TRANSMISSION STATIONS BROADCASTER STATIONS. 0 0 PUBLISHING: 0 0 EDITORIALS ADMINISTRATION, SALES, PRODUCTION, 0 0 STORAGE AND DISTRIBUTION OF 0 0 MAGAZINES AND NEWSPAPERS. 0 0 RADIO: 0 0 SISTEMA RADIOPOLIS, S.A. DE C.V. BROADCASTER STATIONS. 0 0 CABLE TELEVISION: 0 0 CABLEVISION, S.A. DE C.V. CABLE TELEVISION, SIGNAL CONDUCTION 0 0 AND TRANSMISSION EQUIPMENT. 0 0 OTHER BUSINESSES: 0 0 IMPULSORA DEL DEPORTIVO - SOCCER, SOCCER TEAMS, TRAINING 0 0 NECAXA, S.A. DE C.V. AND CLUB FACILITIES, ADMINISTRATIVE OFFICES AND 0 0 DE FUTBOL AMERICA, S.A. DE C.V. THE AZTECA STADIUM. 0 0
MAIN RAW MATERIALS ANNEX 10 CONSOLIDATED FINAL PRINTING
- ------------------------------------------------------------------------------------------------------------------------------------ MAIN MAIN DOM. COST DOMESTIC SUPPLIERS FOREIGN SUPPLIERS SUBST. PRODUCTION (%) - ------------------------------------------------------------------------------------------------------------------------------------ PROGRAMS AND FILMS ANIME CREATIVE CORPORATION 0.84 AMERICA FILMS, S.A. DE C.V. 0.02 CIMA FILMS, S.A. DE C.V. 0.04 CINEMAS LUMIERE, S.A. DE C.V. 0.04 CINEMATOGRAFICA CALDERON, S.A. 0.69 CINEMATOGRAFICA FILMEX, S.A. 0.04 CINEMATOGRAFICA JALISCO, S.A. 0.06 CINEMATOGRAFICA RODRIGUEZ, S.A. 0.30 CHURUBUSCO, S.A. DE C.V. 0.10 DIANA INTERNACIO- NAL FILMS, S.A. 0.09 DIRSOL, S.A. 0.06 DISTRIBUIDORA RO- MARI, S.A. DE C.V. 1.89 GRUPO GALINDO, S.A. DE C.V. 0.07 GUSSI, S.A. DE C.V. 2.95 HITS MOVIE VIDEO, S.A. DE C.V. 0.03 INSTITUTO MEXICA- NO DE CINE, S.A. 0.08 MICH AND RO- ENTERTAINMENT, S.A. DE C.V. 0.15 NUVISION, S.A. 0.78 OLALLO RUBIO GRANADO 0.04 ORO FILMS, S.A. DE C.V. 0.13 PANAMA INTER- NATIONAL FILMS 0.02 PELICULAS CLA- SICAS, S.A. 0.02 PELICULAS NACIO- NALES, S.A. 0.02 PELICULAS RODRI- GUEZ, S.A. 0.57 PELICULAS Y VI- DEOS INTERNACIO NALES, S.A. 0.08 PRODUCCIONES AGUILA, S.A. 0.19 PRODUCCIONES GAER, S.A. 0.02 PRODUCCIONES GALUBI, S.A. 0.05 PRODUCCIONES GONZALO ELVIRA 0.03 PRODUCCIONES MATOUK, S.A. 0.37 PRODUCCIONES POTOSI, S.A. 0.03 PRODUCCIONES TOBARI, S.A. 0.03 PROMOCIMEX, S.A. DE C.V. 0.03 QUALITY FILMS, S.A. DE C.V. 0.07 ROBERTO GINART AVALOS 0.03 SECINE, S.A. DE C.V. 0.09 SHOW CINEMA, S.A. DE C.V. 0.07 VIDEO PRODUCCIO- NES TIJUANA, S.A. 0.02 VIDEOVISA , S.A. DE C.V. 0.02 OTHER 0.50 PROGRAMS AND FILMS 4KIDS ENTERTAIN- MENT NO 0.05 ALFRED HABER DISTRIBUTION, INC. NO 0.32 ALLIANCE ATLAN- TIS INTERNATIONAL NO 1.61 AMERICA PRO- DUCCIONES, S.A. NO 2.16 BAYWOOD USA,LLC. NO 0.10 BBC WORDLWIDE AMERICA, INC. NO 0.11 BELLEVILLE INVESTMENT, LTD. NO 0.02 BETAFILM GMBH & CO. NO 0.73 BEVERLY HILLS ENTERTAINMENT NO 0.06 BREAKTHROUGH ENTERTAINMENT NO 0.06 BUENAVISTA INTERNATIONAL, INC. NO 0.25 CANAL + DISTRIBU- TION NO 0.06 CARSEY WERNER DISTRIBUTION, INC. NO 0.18 CBS BROADCAST INTERNATIONAL NO 1.15 CCC OF AMERICA, INC. NO 0.05 CINAR FILMS, INC. NO 0.07 CONSTELLATION PICTURES, INC. NO 2.37 CPT HOLDINGS, INC. NO 2.07 CROMOSOMA, S.A. NO 0.18 CROWN MEDIA DISTRIBUTION NO 0.34 DIC ENTERTAIN- MENT, CORP. NO 0.08 DORLING KINDER- SLEY VISION NO 0.09 DREAMWORKS NO 2.76 ENTERTAINMENT RIGHTS DIST NO 0.24 FIREWORKS INTER- NATIONAL NO 0.62 FREMANTLE MEDIA LIMITED NO 0.11 HASBRO INTERNA- TIONAL,INC. NO 0.22 HEARTS ENTER- TAINMENT, INC. NO 0.58 HIGHPOINT PRO- DUCTIONS, INC. NO 0.24 INDEPENDENT INTERNATIONAL T.V. INC. NO 3.37 KUSHNER-LOCKE INTERNATIONAL NO 0.21 LUCAS FILM, LTD. NO 1.59 LE MONDE ENTERTAINMENT, INC. NO 0.19 MENDELSON PAWS PRODUC- TIONS, INC. NO 0.12 MGM/UA TELECOM- MUNICATIONS, INC. NO 3.50 MORGAN CREEK INTERNATIONAL NO 0.58 MOVIEMEX INTER- NATIONAL, INC. NO 0.06 MTV NETWORKS A DIVISION OF VIACOM INT. NO 1.15 MULTIFILMS, B.V. NO 1.10 MYRIAM BALLES- TEROS PRODUC- TIONS, INC. NO 0.07 NELVANA DKC, INC. NO 0.08 NELVANA INTER- NATIONAL NO 0.33 NEW LATIN IMAGE CORPO- RATION, INC. NO 0.09 NU IMAGE INCORPORATED NO 0.21 PALOMA PRO- DUCTIONS, LLC. NO 3.84 PARAMOUNT PICTURES, CORP. NO 3.99 PEAKVIEWING TRANSATLANTIC NO 0.05 RAINBOW, S.R.L. NO 0.09 SALSA DISTRIBUTION NO 0.12 SALSA ENTER- TAINMENT, INC. NO 1.01 SESAME WORKSHOP NO 0.24 SHOGAKUKAN PRODUCTIONS, INC. NO 0.06 SONY CORPORA- TION OF AMERICA NO 11.07 SOUTHERN STAR, INC. NO 0.10 STUDIO CANAL IMAGE NO 0.41 TELESCREEN DISTRIBUTION, INC. NO 0.07 TELEVIX ENTER- TAINMENT, S.A. NO 0.09 TEPUY USA COR- PORATION NO 0.56 TF1 INTERNA- TIONAL, INC. NO 0.11 TOEI ANIMATION CO., LTD NO 0.61 TOKYO BROAD- CASTING SYSTEM NO 0.10 TOP ENTERTAIN- MENT PRODUC- TIONS, INC. NO 0.07 TV LOONLAND AG NO 0.05 TWENTIETH CEN- TURY FOX, INC. NO 7.36 UNIVERSAL STUDIOS INTER- NATIONAL, B.V. NO 8.38 VENEVISION IN- TERNACIONAL, INC. NO 0.13 VENTURA FILM DISTRIBUTORS BV NO 0.41 VIACON LATINO AMERICANA, INC. NO 0.05 WARNER BROS. INTERNATIONAL TELEVISION NO 18.74 WELLSPRING MEDIA, INC. NO 0.07 WHILAND COMPANY NO 0.49 ZACH MOTION PICTURES, INC. NO 0.10 METRO GOLDWYN MAYER INTERNATI- ONAL NO 0.80 OTHER NO 0.64 COAXIAL CABLE RG MAYA 60 NACIONAL DE CONDUCTORES, S.A. DE C.V. 4.02 IDENTIFICATION PLAQUE RIVANDI, S.A. DE C.V. 0.01 CABLEMODEMS MOTOROLA, INC. NO 4.02 HILTI BOLT HILTI MEXICANA, S.A. DE C.V. NO 0.02 SWITCH CABLE NETWORK MEXICO NO 0.02 TWO OUTLET DEVICE TVC CORPORATION YES 0.02 AC 200 DECODER MOTOROLA, INC. NO 74.38 COUCHE PAPER PAPELERA MOHGA- BBA, S.A. 0.39 SUMINISTROS Y SERVICIOS BROM 0.64 MAG PAPER 0.11 PRODUCTORA COMERCIALIZA- DORA Y EDITORA 0.14 OFFSET MULTICO- LOR, S.A. 1.84 PROCESOS INDUS- TRIALES DE PAPEL 0.45 IMPRESOS MOINO, 0.10 BULKLEY DUNTON 1.68 KIMBERLY CLARK 0.08 PAPEL, S.A. 0.06 COUCHE PAPER STORAM ENSON YES 8.12 BULKLEY DUNTON YES 16.58 M REAL YES 1.25 MYLLLIKOSKI PAPEL YES 4.34 TEMBEC, INC. YES 0.01 FINNIPAP YES 8.09 WEB SOURCE YES 0.01 BOWATER, INC. YES 1.72 NORKE CANADA YES 0.13 UPM YES 0.11 PAPER AND IMPRESSION PRODUCTORA CO- MERCIALIZADORA Y EDITORES DE LI- BROS , S.A. DE C.V. 7.80 OFFSET MULTICOLOR 13.37 IMPRESOS MOINO 1.74 PROCESOS IND DE PAPEL, S.A. 2.75 BARNICES PARA EDICIONES DE LIBROS, S.A. 0.66 SERVICIOS PRO- FESIONALES DE IMPRESION, S.A. DE C.V. 1.41 IMPRESOS EN OFFSET Y SERI- GRAFIA, S.A. 0.11 LORI DER, S.A. DE C.V. 0.04 LITOGRAFIA MAGNO GRAFT, S.A. 0.45 LOVA IMPRE- SORES, S.A. 0.02 GRAFICA LA PRENSA, S.A. 0.19 QUEBECOR WORDL MEXICO 0.66 REPRODUCCIO- NES FOTOME- CANICAS 0.63 PAPER AND IMPRESSION QUEBECOR CHILE, S.A. YES 3.04 QUEBECOR WORLD, INC. YES 0.71 GRUPO OP GRA- FICAS, S.A. YES 0.53 PRINTER COLOM- BINA, S.A. YES 0.02 ST. IVES, INC. YES 7.74 BEST LITHO YES 0.25 EDITORES, S.A. YES 0.14 RR DONELLY YES 2.25 QUAD GRAPHICS YES 3.21 PRO-OFFSET EDI- TORIAL, LTDA. YES 0.18
SALES DISTRIBUTION BY PRODUCT ANNEX 11 DOMESTIC SALES CONSOLIDATED FINAL PRINTING
- ------------------------------------------------------------------------------------------------------------ TOTAL PRODUCTION NET SALES MARKET ------------------------------------------------- MAIN PRODUCTS VOLUME AMOUNT VOLUME AMOUNT SHARE (%) - ------------------------------------------------------------------------------------------------------------ INTERSEGMENT ELIMINATIONS (1,035,555) TELEVISION: - ---------- PROGRAMMING HALF HOURS PRODUCED (DOMESTIC) 115.000 ADVERTISED TIME SOLD (HALF HOURS) 7 17,947,239 OTHER INCOME 122,234 PROGRAMMING FOR PAY TELEVISION: - ------------------------------ SALE OF SIGNALS 711,578 ADVERTISED TIME SOLD 118,151 PUBLISHING: - ---------- MAGAZINE CIRCULATION 157,883 1,409,055 63,044 790,746 PUBLISHING 795,779 OTHER INCOME 21,912 PUBLISHING DISTRIBUTION: 14,411 193,223 - ------------------------ SKY MEXICO - ---------- DTH BROADCAST SATELLITE 5,637,811 PAY PER VIEW 307,571 CHANNEL COMMERCIALIZATION 41,145 CABLE TELEVISION: - ---------------- ANALOGIC AND DIGITAL SERVICE 1,309,370 SERVICE INSTALLATION 34,587 PAY PER VIEW 2,486 CHANNEL COMMERCIALIZATION 29,100 OTHER 29,602 RADIO: - ----- ADVERTISED TIME SOLD 344,733 OTHER BUSINESSES: - ---------------- DISTRIBUTION, RENTALS, AND SALE OF MOVIE RIGHTS 540,271 SPECIAL EVENTS AND SHOW PROMOTION 496,931 INTERNET SERVICES 278,700 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL 1,409,055 28,717,614 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ MAIN -------------------------------------------------------------------------------------------- MAIN PRODUCTS TRADEMARKS CUSTOMERS - ------------------------------------------------------------------------------------------------------------------------------------ INTERSEGMENT ELIMINATIONS TELEVISION: - ---------- PROGRAMMING HALF HOURS PRODUCED (DOMESTIC) ADVERTISED TIME SOLD (HALF HOURS) TELEFONOS DE MEXICO, S.A. DE C.V. COMPANIA PROCTER & GAMBLE DE MEXICO, S. DE R. L. DE C.V. SABRITAS, S DE R.L. DE C.V. THE COCA-COLA EXPORT CORPORATION SUCURSAL EN MEXICO BIMBO, S.A. DE C.V. NESTLE MEXICO, S.A. DE C.V. PEPSI COLA MEXICANA, S. DE R.L. DE C.V. KIMBERLY CLARK DE MEXICO, S.A. DE C.V. DANONE DE MEXICO, S.A. DE C.V. PRODUCCIONES INFOVISION, S.A. DE C.V. KELLOGG COMPANY MEXICO, S. DE R.L. DE C.V. COMPANIA CERVECERA DE ZACATECAS, S.A. DE C.V. MATTEL DE MEXICO, S.A. DE C.V. FRABEL, S.A. DE C.V. OTHER INCOME VARIOUS PROGRAMMING FOR PAY TELEVISION: - ------------------------------ SALE OF SIGNALS OPERADORA MEGACABLE, S.A. DE C.V. T.V. CABLE, S.A. DE C.V. TELECABLE CENTRO OCCIDENTE, S.A. DE C.V. TELEVISION INTERNACIONAL, S.A. DE C.V. SERVICIOS DE COMUNICACION POR CABLE, S.A. DE C.V. TELEVICABLE DEL CENTRO, S.A. DE C.V. T.V. CABLE DE PROVINCIA, S.A. DE C.V. CABLE OPERADORA DE LA COMARCA, S.A. DE C.V. CABLENET INTERNATIONAL, S.A. DE C.V. T.V. POR CABLE DEL NORTE DE SONORA, S.A. DE C.V. ADVERTISED TIME SOLD BANCO MERCANTIL DEL NORTE, S.A. COMPANIA CERVECERA DE ZACATECAS, S.A. DE C.V. VPN DE MEXICO, S.A. DE C.V. PROCTER & GAMBLE MEXICO, S. DE R.L. DE C.V. CONTROL MEDIA, S.A. DE C.V. COMBE DE MEXICO, S. DE R.L. DE C.V. MARCAS NESTLE, S.A. DE C.V. CADBURY ADAMS DE MEXICO, S. DE R.L. DE C.V. LINEAS AEREAS ZACATECAS, S.A. DE C.V. LANETRO MOBILE MEXICO, S.A. DE C.V. PUBLISHING: - ---------- MAGAZINE CIRCULATION TV Y NOVELAS MAGAZINE, GENERAL PUBLIC (AUDIENCE) TELEGUIA MAGAZINE, DEALERS VANIDADES MAGAZINE COMMERCIAL CENTERS (MALLS) COSMOPOLITAN MAGAZINE NATIONAL GEOGRAPHIC MAGAZINE SOCCERMANIA MAGAZINE TU MAGAZINE MEN'S HEALTH MAGAZINE CARAS MAGAZINE MUY INTERESANTE MAGAZINE BIG BANG MAGAZINE PUBLISHING FRABEL, S.A. DE C.V. KIMBERLY CLARK DE MEXICO, S.A. DE C.V. COMPANIA PROCTER & GAMBLE DE MEXICO, S. DE R.L DE C.V. UNILEVER DE MEXICO, S. DE R.L. DE C.V. TELEFONOS DE MEXICO, S.A. DE C.V. FABRICAS DE CALZADO ANDREA, S.A. DE C.V. ENFASYS DIGITAL, S.A. DE C.V. OTHER INCOME VARIOUS PUBLISHING DISTRIBUTION: MAGAZINE: GENERAL PUBLIC (AUDIENCE) - ------------------------ "MAESTRA PREESCOLAR" DEALERS "SEVENTEEN EN ESPANOL" COMMERCIAL CENTERS (MALLS) "CAR AND DRIVER" "REVISTA DEL CONSUMIDOR" "ENTREPRENEUR" SKY MEXICO - ---------- DTH BROADCAST SATELLITE SKY SUBSCRIBERS PAY PER VIEW CHANNEL COMMERCIALIZATION BANCO MERCANTIL DEL NORTE, S.A. TELEFONOS DE MEXICO, S.A. DE C.V. COMPANIA CERVECERA DE ZACATECAS, S.A. DE C.V. DAIMLERCHRYSLER DE MEXICO, S.A. DE C.V. VPN DE MEXICO, S.A. DE C.V. CABLE TELEVISION: - ---------------- ANALOGIC AND DIGITAL SERVICE CABLEVISION SUBSCRIBERS SERVICE INSTALLATION VPN DE MEXICO, S.A. DE C.V. PAY PER VIEW BANCO MERCANTIL DEL NORTE, S.A. CHANNEL COMMERCIALIZATION SERCOMGLOB COMUNICACIONES, S.A. DE C.V. OTHER CONTROL MEDIA, S.A. DE C.V. COMPANIA CERVECERA DE ZACATECAS, S.A. DE C.V. MUEBLERIA FREY, S.A. DE C.V. RADIO: - ----- ADVERTISED TIME SOLD INSTITUTO MEXICANO DEL SEGURO SOCIAL PARTIDO REVOLUCIONARIO INSTITUCIONAL DEL ESTADO DE MEXICO ORGANIZACION RADIOFONICA DE BAJA CALIFORNIA, S.A. DE C.V. PROPIMEX, S.A. DE C.V. ARENA COMUNICATIONS, S.A. DE C.V. UNILEVER DE MEXICO, S. DE R.L. DE C.V. PEGASO PCS, S.A. DE C.V. COOPERATIVA LA CRUZ AZUL, S.C.L. BBVA BANCOMER, S.A. MARCAS NESTLE, S.A. DE C.V. OTHER BUSINESSES: - ---------------- DISTRIBUTION, RENTALS, AND SALE OF MOVIE RIGHTS CINEPOLIS DEL PAIS, S.A. DE C.V. CINEMAS DE LA REPUBLICA, S.A. DE C.V. OPERADORA DE CINEMAS, S.A. DE C.V. MULTIMEDIOS CINEMAS, S.A. DE C.V. CINEMARK DE MEXICO, S.A. DE C.V. COYOACAN FILMS, S.A. DE C.V. GENERAL PUBLIC (AUDIENCE) SPECIAL EVENTS AND SHOW PROMOTION AMERICA GENERAL PUBLIC (AUDIENCE) REAL SAN LUIS FEDERACION MEXICANA DE FUTBOL, A.C. INTERNET SERVICES ESMAS.COM RADIOMOVIL DIPSA, S.A. DE C.V. PEGASO PCS, S.A. DE C.V. IUSACELL, S.A. DE C.V. OPERADORA UNEFON, S.A. DE C.V.
SALES DISTRIBUTION BY PRODUCT ANNEX 11A FOREIGN SALES CONSOLIDATED FINAL PRINTING
- ------------------------------------------------------------------------------------------------------------------------- TOTAL PRODUCTION NET SALES MAIN PRODUCTS VOLUME AMOUNT VOLUME AMOUNT DESTINATION - ------------------------------------------------------------------------------------------------------------------------- INTERSEGMENT ELIMINATIONS (9,597) TELEVISION BROADCASTING: - ----------------------- ADVERTISING TIME SOLD 435,850 UNITED STATES OF AMERICA OTHER INCOME 65,472 UNITED STATES OF AMERICA PROGRAMMING FOR PAY TELEVISION: - ------------------------------ SALES OF SIGNALS 281,447 SPAIN ARGENTINA CHILE GUATEMALA COLOMBIA UNITED STATES OF AMERICA PROGRAMMING EXPORT: - ------------------ PROGRAMMING AND ROYALTIES 1,875,916 UNITED STATES OF AMERICA CENTRAL AMERICA CARIBBEAN EUROPE SOUTH AMERICA AFRICA ASIA PUBLISHING: - ---------- MAGAZINE CIRCULATION 31,442 448,819 GUATEMALA AND COSTA RICA UNITED STATES OF AMERICA PANAMA SOUTH AMERICA CENTRAL AMERICA PUBLISHING 448,243 PUBLISHING DISTRIBUTION: 17,223 208,970 PANAMA - ------------------------ SOUTH AMERICA OTHER BUSINESSES: DISTRIBUTION OF FILM MOVIES 8,307 - ----------------------------------------------------------------------------------------------------------------------- TOTAL 3,763,427 - ----------------------------------------------------------------------------------------------------------------------- NOTES - ----------------------------------------------------------------------------------------------------------------------- MAIN ----------------------------------------------------------------------------- MAIN PRODUCTS TRADEMARKS CUSTOMERS - ----------------------------------------------------------------------------------------------------------------------- INTERSEGMENT ELIMINATIONS TELEVISION BROADCASTING: - ----------------------- ADVERTISING TIME SOLD MCCANN ERICKSON, INC. BBD&O SAATCHI & SAATCHI OMD GSD&M ADVERTISING MINDSHARE OTHER INCOME VARIOUS PROGRAMMING FOR PAY TELEVISION: - ------------------------------ SALES OF SIGNALS TELEVISORA DE COSTARICA GALAXY ENTERTAINMENT ARGENTINA, S.A. SKY CHILE CPA SUPER CABLE, AKL. TCN DOMINICANA, S.A. ECHOSTAR COX PROGRAMMING EXPORT: - ------------------ PROGRAMMING AND ROYALTIES TELEVISA KYOTO BROADCASTING SYSTEM, CO. LTD. TELEVISA TV. SBT CANAL 4 DE SAO PAULO, S.A. TELEVISA CORPORACION VENEZOLANA DE TELEVISION TELEVISA COMPANIA PERUANA DE RADIODIFUSION, S.A. TELEVISA TV. FUTBOL, INC. TELEVISA CORPORACION MEDCOM PANAMA, S.A. TELEVISA PUBLISHING: - ---------- MAGAZINE CIRCULATION T.V. Y NOVELAS MAGAZINE GENERAL PUBLIC (AUDIENCE) NATIONAL GEOGRAPHIC MAGAZINE DEALERS HISPANIC MAGAZINE COMMERCIAL CENTERS (MALLS) VANIDADES MAGAZINE COSMOPOLITAN MAGAZINE TU MAGAZINE PUBLISHING PROCTER & GAMBLE P & G PRESTIGE DIRBEL, S.A. ESTEE LAUDER JOHNSON & JOHNSON WRIGLEY'S PUBLISHING DISTRIBUTION: SELECCIONES MAGAZINE GENERAL PUBLIC (AUDIENCE) - ------------------------ HOLA MAGAZINE DEALERS VEA MAGAZINE COMMERCIAL CENTERS (MALLS) SOHO MAGAZINE CROMOS MAGAZINE CAMBIO MAGAZINE SEMANA MAGAZINE OTHER BUSINESSES: DISTRIBUTION OF FILM MOVIES NEW LINE INTERNATIONAL RELEASING, INC. METRO GOLDWIN MAYER STUDIOS, INC. - ----------------------------------------------------------------------------------------------------------------------- TOTAL - ----------------------------------------------------------------------------------------------------------------------- NOTES
PROJECT, AMOUNT EXERCISED AND PROGRESS PERCENTAGE ANNEX 13 CONSOLIDATED FINAL PRINTING
- ----------------------------------------------------------------------------------------------------------------------------- MAJOR INVESTMENT PROJECTS OF GRUPO TELEVISA, S.A. AND ITS SUBSIDIARIES AT DECEMBER 31, 2005 INCLUDE THE FOLLOWING (MILLIONS OF U.S. DOLLARS AND MEXICAN PESOS): DESCRIPTION AUTHORIZED AMOUNT EXERCISED AMOUNT PROGRESS % - ------------------------------------------------- ----------------- ---------------- ---------- U.S. DOLLAR DENOMINATED PROJECTS: - --------------------------------- DIGITALIZATION OF THE CABLE TELEVISION NETWORK U.S.$ 124.8 U.S.$ 97.4 78% INFORMATION TECHNOLOGY PROJECTS OF CABLE TELEVISION 17.8 16.0 90% TECHNICAL EQUIPMENT FOR T.V. STATIONS 13.3 10.8 81% SKY MEXICO PROJECTS 61.7 48.1 78% MEXICAN PESOS DENOMINATED PROJECTS: - ----------------------------------- INFORMATION TECHNOLOGY PROJECTS PS. 38.3 PS. 3.2 8%
INFORMATION RELATED TO BULLETIN B-15 (FOREIGN CURRENCY TRANSLATION) ANNEX 14 CONSOLIDATED FINAL PRINTING - -------------------------------------------------------------------------------- MONETARY ASSETS AND LIABILITIES OF MEXICAN COMPANIES DENOMINATED IN FOREIGN CURRENCIES ARE TRANSLATED AT THE PREVAILING EXCHANGE RATE AT THE BALANCE SHEET DATE. RESULTING EXCHANGE RATE DIFFERENCES ARE RECOGNIZED IN INCOME FOR THE YEAR, WITHIN INTEGRAL COST OF FINANCING. ASSETS, LIABILITIES AND RESULTS OF OPERATIONS OF NON-MEXICAN SUBSIDIARIES ARE FIRST CONVERTED TO MEXICAN GAAP, INCLUDING RESTATING TO RECOGNIZE THE EFFECTS OF INFLATION BASED ON THE INFLATION OF EACH FOREIGN COUNTRY, AND THEN TRANSLATED TO MEXICAN PESOS UTILIZING THE EXCHANGE RATE AS OF THE BALANCE SHEET DATE AT YEAR-END. RESULTING TRANSLATION DIFFERENCES ARE RECOGNIZED IN EQUITY AS PART OF THE OTHER COMPREHENSIVE INCOME OR LOSS. FINANCIAL STATEMENTS OF NON-MEXICAN OPERATIONS THAT ARE INTEGRAL TO MEXICAN OPERATIONS ARE CONVERTED TO MEXICAN GAAP AND TRANSLATED TO MEXICAN PESOS BY UTILIZING THE EXCHANGE RATE OF THE BALANCE SHEET DATE AT YEAR-END FOR MONETARY ASSETS AND LIABILITIES, WITH THE RELATED ADJUSTMENT INCLUDED IN NET INCOME, AND HISTORICAL EXCHANGE RATES FOR NON-MONETARY ITEMS. EFFECTIVE MARCH, 2002, THE COMPANY DESIGNATED ITS NET INVESTMENT IN UNIVISION AS AN EFFECTIVE HEDGE OF ITS OUTSTANDING SENIOR NOTES DUE 2011 AND 2032. EFFECTIVE MARCH 2005, THE COMPANY DESIGNATED ITS NET INVESTMENT IN UNIVISION AS AN EFFECTIVE HEDGE OF ITS OUTSTANDING SENIOR NOTES DUE 2025 IN THE AGGREGATE AMOUNT OF U.S.$400 MILLION. AS OF DECEMBER 31, 2005, THE AGGREGATE AMOUNT OF OUTSTANDING LONG-TERM DEBT BEING HEDGED BY THE NET INVESTMENT IN UNIVISION WAS OF APPROXIMATELY U.S.$775.5 MILLION. CONSEQUENTLY, ANY FOREIGN EXCHANGE GAIN OR LOSS ATTRIBUTABLE TO THIS U.S. DOLLAR LONG-TERM DEBT, BEING HEDGED BY THE COMPANY'S NET INVESTMENT IN SHARES OF UNIVISION, IS CREDITED OR CHARGED DIRECTLY TO EQUITY (OTHER COMPREHENSIVE INCOME OR LOSS). THE GROUP'S FINANCIAL STATEMENTS FOR DECEMBER 31, 2004, HAVE BEEN RESTATED TO MEXICAN PESOS IN PURCHASING POWER AS OF DECEMBER 31, 2005, BY USING A RESTATEMENT FACTOR DERIVED FROM THE CHANGE IN THE NCPI, WHICH FOR 2005 WAS 1.0333. HAD THE ALTERNATIVE WEIGHTED AVERAGE FACTOR ALLOWED UNDER MEXICAN GAAP BEEN APPLIED TO RESTATE THE GROUP'S FINANCIAL STATEMENTS FOR DECEMBER 31, 2004, WHICH INCLUDED THE RESULTS OF MEXICAN AND NON-MEXICAN SUBSIDIARIES, THE RESTATEMENT FACTOR FOR DECEMBER 2004 WOULD HAVE BEEN 1.0332. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. GRUPO TELEVISA, S.A. -------------------------------- (Registrant) Dated: February 27, 2006 By /s/ Jorge Lutteroth Echegoyen ------------------------------ Name: Jorge Lutteroth Echegoyen Title: Controller, Vice-President -----END PRIVACY-ENHANCED MESSAGE-----