kr6kpress_grupo.htm
 
 
 

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, 2019
 
GRUPO TELEVISA, S.A.B.
(Translation of registrant’s name into English)
 
 
Av. Vasco de Quiroga No. 2000, Colonia Santa Fe 01210, Mexico City, Mexico
(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 if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1).)
 
Yes
 
No
  
x
 
 
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7).)
 
 
Yes
 
No
  
x
          
 
 


 

TLEVISA

Consolidated

Ticker:       TLEVISA

Quarter:     4     Year:    2018


Quarterly Financial Information

   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
 
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[105000] Management commentary
 
Management commentary
 
Mexico City, February 21, 2019 — Grupo Televisa, S.A.B. (NYSE:TV; BMV: TLEVISA CPO; “Televisa” or the “Company”), today announced results for full year and fourth quarter 2018. The results have been prepared in accordance with International Financial Reporting Standards (“IFRS”).

The following table sets forth condensed consolidated statements of income for the years ended December 31, 2018 and 2017, in millions of Mexican pesos, as well as the percentage that each line represents of net sales and the percentage change when comparing 2018 with 2017:
 
 
2018
Margin %
2017
Margin %
Change %
Net sales
101,282.3
100.0
93,586.2
100.0
8.2
Net income
7,615.3
7.5
6,026.4
6.4
26.4
Net income attributable to stockholders of the Company
6,009.4
5.9
3,973.4
4.2
51.2
Segment net sales
106,094.4
100.0
96,930.4
100.0
9.5
Operating segment income (1)
40,679.2
38.3
37,492.5
38.7
8.5
 (1) The operating segment income margin is calculated as a percentage of segment net sales.
 
Net sales increased by 8.2% to Ps.101,282.3 million in 2018 compared with Ps.93,586.2 million in 2017. This increase was attributable to the growth in Content and Cable segments revenues. Operating segment income increased by 8.5%, reaching Ps.40,679.2 million with a margin of 38.3%.

Net income attributable to stockholders of the Company amounted to Ps.6,009.4 million in 2018, compared with Ps.3,973.4 million in 2017. The net increase of Ps.2,036.0 million, or 51.2%, mainly reflected (i) a Ps.4,015.9 million favorable change in other income or expense, net; and (ii) a Ps.3,323.0 million increase in income before depreciation and amortization. These favorable variances were partially offset by (i) a Ps.2,687.5 million increase in finance expense, net; (ii) a Ps.1,380.4 million decrease in share of income of associates and joint ventures; (iii) a Ps.1,329.5 million increase in depreciation and amortization; and (iv) a Ps.352.6 million increase in income taxes.
 
 
Disclosure of nature of business
 

Televisa, is a leading media company in the Spanish-speaking world, an important cable operator in Mexico, and an operator of a leading direct-to-home satellite pay television system in Mexico. Televisa distributes the content it produces through several broadcast channels in Mexico and in over 50 countries through 26 pay-tv brands and television networks, cable operators and over the top or “OTT” services. In the United States, Televisa´s audiovisual content is distributed through Univision, the leading media company serving the Hispanic market. Univision broadcasts Televisa’s audiovisual content through multiple platforms in exchange for a royalty payment. In addition, Televisa has equity and Warrants which upon their exercise would represent approximately 36% on a fully-diluted, as-converted basis of the equity capital in UHI, the controlling company of Univision. Televisa’s cable business offers integrated services, including video, high-speed data and voice services to residential and commercial customers as well as managed services to domestic and international carriers through five cable multiple system operators in Mexico. Televisa owns a majority interest in Sky, a leading direct-to-home satellite pay television system in Mexico, operating also in the Dominican Republic and Central America. Televisa also has interests in magazine publishing and distribution, radio production and broadcasting, professional sports and live entertainment, feature-film production and distribution, and gaming. 


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Disclosure of management's objectives and its strategies for meeting those objectives
 
 
We intend to leverage our position as a leading media company in the Spanish-speaking world to continue expanding our business while maintaining profitability and financial discipline. We intend to do so by maintaining our leading position in the Mexican television market, by continuing to produce high quality programming and by improving our sales and marketing efforts while maintaining high operating margins and expanding our cable business.

By leveraging all our business segments and capitalizing on their synergies to extract maximum value from our content and our distribution channels, we also intend to continue expanding our cable business, increasing our international programming sales worldwide and strengthening our position in the growing U.S.-Hispanic market. We also intend to continue developing and expanding Sky, our DTH platform, and our cable businesses. We will continue to strengthen our position and will continue making additional investments, which could be substantial in size, in the DTH and cable industry in accordance with the consolidation of the cable market in Mexico, and we will also continue developing our publishing business and maintain our efforts to become an important player in the gaming industry.

We intend to continue to expand our business by developing new business initiatives and/or through business acquisitions and investments in Mexico, the United States and elsewhere. However, we continue to evaluate our portfolio of assets, in order to determine whether to continue plans to dispose of select non-core operations.

Disclosure of entity's most significant resources, risks and relationships
 
We expect to fund our operating cash needs during 2018, other than cash needs in connection with any potential investments and acquisitions, through a combination of cash from operations and cash on hand. We intend to finance our potential investments or acquisitions in 2018 through available cash from operations, cash on hand and/or borrowings. The amount of borrowings required to fund these cash needs in 2018 will depend upon the timing of such transactions and the timing of cash payments from advertisers under our advertising sales plan.
 
The investing public should consider the risks described as follows, as well as the risks described in “Key Information_Risk Factors” in the Company’s Annual Report 2017, which are not the only risks the Company faces. Risks and uncertainties unknown by the Company, as well as those that the Company currently considers as not relevant, could affect its operations and activities.
 
Risk Factors Related with Political Developments:

•
Imposition of fines by regulators and other authorities could adversely affect our financial condition and results of operations
•
Social Security Law
•
Federal Labor Law
•
Mexican tax laws
•
Elimination of the tax consolidation regime
•
Limitation of the deduction of non-taxable employee benefits
•
Increase to the border Value Added Tax rate
•
Regulations of the General Health Law on advertising
•
Weaknesses in internal controls over financial reporting
•
Changes in U.S. tax law
•
Mexican Securities Market Law
•
Renewal or revocation of our concessions

Risk Factors Related to our Business:

•
Control of a stockholder
•
Measures for the prevention of the taking of control
•
Competition

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•
Seasonal nature of our business
•
Loss of transmission or loss of the use of satellite transponders
•
Incidents affecting our network and information systems or other technologies
•
Results of operations of UHI
•
Uncertainty in global financial markets
•
Renegotiation of Trade Agreements or other changes in foreign policy by the presidential administration in the United States
•
Political events in Mexico

Disclosure of results of operations and prospects
 

The following table presents full year consolidated results ended December 31, 2018 and 2017, for each of our business segments. Full year consolidated results for 2018 and 2017 are presented in millions of Mexican pesos.

 

Net Sales

2018

%

2017

 %

Change %

Subtotal Content

36,490.1

34.4

33,997.2

35.1

7.3

World Cup rights

2,733.6

2.6

n/a

n/a

n/a

Content

39,223.7

37.0

33,997.2

35.1

15.4

Sky

22,002.2

20.7

22,196.6

22.9

(0.9)

Cable

36,233.0

34.2

33,048.3

34.1

9.6

Other Businesses

8,635.5

8.1

7,688.3

7.9

12.3

Segment Net Sales

106,094.4

100.0

96,930.4

100.0

9.5

Intersegment Operations(1)

(4,812.1)

(3,344.2)

(43.9)

Net Sales

101,282.3

93,586.2

8.2

 

Operating Segment Income(2)

2018

Margin  %

2017

Margin %

Change %

Subtotal Content

13,444.6

36.8

12,825.3

37.7

4.8

World Cup rights

1,410.5

51.6

n/a

n/a

n/a

Content

14,855.1

37.9

12,825.3

37.7

15.8

Sky

9,767.3

44.4

10,106.6

45.5

(3.4)

Cable

15,302.5

42.2

14,034.8

42.5

9.0

Other Businesses

754.3

8.7

525.8

6.8

43.5

Operating Segment Income

40,679.2

38.3

37,492.5

38.7

8.5

Corporate Expenses

(2,154.7)

(2.0)

(2,291.0)

(2.4)

5.9

Depreciation and Amortization

(19,834.2)

(19.6)

(18,504.7)

(19.8)

(7.2)

Other Expense, net

1,562.3

1.5

(2,453.6)

(2.6)

n/a

Operating Income

20,252.6

20.0

14,243.2

15.2

42.2

1 For segment reporting purposes, intersegment operations are included in each of the segment operations.

2 Operating segment income is defined as operating income before depreciation and amortization, corporate expenses, and other expense, net.


Content
Fourth quarter sales increased by 0.3% to Ps.10,642.8 million compared with Ps.10,605.8 million in fourth quarter 2017.
 
Full year sales increased by 15.4% to Ps.39,223.7 million compared with Ps.33,997.2 million in 2017.

 

Millions of Mexican pesos

2018

%

2017

%

Change %

Advertising

21,154.9

53.9

20,719.1

61.0

2.1

Network Subscription Revenue

4,814.3

12.3

4,058.1

11.9

18.6

Licensing and Syndication

10,520.9

26.8

9,220.0

27.1

14.1

Subtotal Content

36,490.1

93.0

33,997.2

100.0

7.3

World Cup rights

2,733.6

7.0

n/a

n/a

n/a

Net Sales

39,223.7

100.0

33,997.2

100.0

15.4


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Advertising
 
Advertising fourth quarter revenue decreased by 3.7% to Ps.6,565.1 million compared with Ps.6,820.5 million in fourth quarter 2017. Fourth quarter decrease is explained by a substantial decrease in advertising sold to government entities. Full year advertising revenue increased by 2.1%.
 
We concluded the negotiation of the upfront for a total amount of Ps.16.4 billion, in line with that of the prior year.
 
 
Network Subscription Revenue
 
Fourth-quarter Network Subscription revenue increased by 9.3% to Ps.1,251.6 million compared to Ps.1,145.1 million in fourth-quarter 2017.
 
Full year Network Subscription revenue increased by 18.6%. The full year increase is mainly explained by the new offerings of our networks which now includes additional rights that resulted in higher overall price. This came into effect in the fourth quarter of 2017.
 
Licensing and Syndication
 
Fourth-quarter Licensing and Syndication revenue increased by 7.0% to Ps.2,826.1 million compared to Ps.2,640.2 million in fourth-quarter 2017. Fourth-quarter royalties from Univision reached U.S.$88.0 million compared to U.S.$78.8 million in the fourth-quarter 2017. Royalties in the fourth quarter were negatively affected by a one-time U.S.$65.1 million revenue adjustment in Univision.
 
For the full year 2018 royalties from Univision reached U.S.$383.6 million. The full year increase of 22.2% in royalties is mainly explained by the step up in the royalty rate, partially compensated by lower revenues of Univision, primarily due to the loss of the carriage of Univision networks by Dish.
 
World Cup
This year, Content sales benefited from the sublicensing of certain broadcast and digital rights of the 2018 Soccer World Cup in Mexico and other Latin American markets, by Ps.2,733.6 million.
 
Fourth quarter operating segment income for our Content segment increased by 3.0% to Ps.4,036.7 million compared with Ps.3,919.5 million in fourth quarter 2017; the margin was 37.9%.
 
Full-year operating segment income for our Content segment increased by 15.8% to Ps.14,855.1 million compared with Ps.12,825.3 million in 2017. The margin was 37.9%.


Sky

Fourth quarter sales decreased by 1.9% to Ps.5,461.9 million compared with Ps.5,568.9 million in fourth quarter 2017. During the quarter, Sky lost 198,617 video revenue generating units, or RGUs.

Full year sales decreased by 0.9% to Ps.22,002.2 million compared with Ps.22,196.6 million in 2017. The number of net video RGUs decreased by 365,486 during the year to 7,637,040 as of December 31, 2018. Sky ended the quarter with 159,027 video RGUs in Central America and the Dominican Republic.

The loss of video RGUs is mainly explained by the disconnections of some customers following our transmission of the World Cup in the second and third quarters. On the other hand, during 2018, Sky added 92 thousand broadband RGUs.
 
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The following table sets forth the breakdown of RGUs per service type for Sky as of December 31, 2018 and 2017.

 

RGUs

2018

2017

Video

7,637,040

8,002,526

Broadband

91,841

-

Total RGUs

7,728,881

8,002,526


 

Fourth quarter operating segment income decreased by 4.7% to Ps.2,214.6 million compared with Ps.2,324.1 million in fourth quarter 2017, and the margin was 40.5%. The decrease in margin is explained by the launch of the bundle packages of Blue Telecomm and Sky. 

Full year operating segment income decreased by 3.4% to Ps.9,767.3 million compared with Ps.10,106.6 million in 2017, and the margin was 44.4%.

 

Cable

Fourth quarter sales increased by 10.8% to Ps.9,517.7 million compared with Ps.8,592.9 million in fourth quarter 2017.

Full year sales increased by 9.6% to Ps.36,233.0 million compared with Ps.33,048.3 million in 2017.

Total revenue generating units or RGUs reached 11.8 million including the acquisition of part of the residential fiber-to-the-home business of Axtel. Quarterly organic growth was mainly driven by 229 thousand of voice net additions. Broadband net additions were 81 thousand and video net additions were 6 thousand, for total quarter organic net additions of approximately 316 thousand.

Full year organic net additions were close to 1.2 million RGUs.

The following table sets forth the breakdown of RGUs per service type for our Cable segment as of December 31, 2018 and 2017.

 

RGUs

2018(1)

2017

Video

4,384,247

4,185,150

Broadband

4,479,017

3,797,336

Voice

2,978,508

2,121,952

Total RGUs

11,841,772

10,104,438
(1) It includes 553,226 RGs acquired from Axtel
  


Fourth quarter operating segment income increased by 9.1% to Ps.4,005.7 million compared with Ps.3,671.7 million in fourth quarter 2017, and the margin reached 42.1%.

Full year operating segment income increased by 9.0% to Ps.15,302.5 million compared with Ps.14,034.8 million in 2017. The margin reached 42.2%, in line with 2017.

The following tables set forth the breakdown of revenues and operating segment income, excluding consolidation adjustments, for our MSO and enterprise operations for 2018 and 2017.

 

MSO Operations (1)

Millions of Mexican pesos

2018

2017

Change %

Revenue

32,279.8

29,067.9

11.0

Operating Segment Income

13,962.0

12,578.0

11.0

Margin (%)

43.3%

43.3%

 

 

 

 

Enterprise Operations (1) 

Millions of Mexican pesos

2018

2017

Change %

Revenue

5,341.0

5,218.5

2.3

Operating Segment Income

1,811.9

1,892.6

-4.3

Margin (%)

33.9%

36.3%

 

(1) These results do not include consolidation adjustments of Ps.1,387.8 million in revenues nor Ps.471.4 million in Operating Segment Income for 2018, neither the consolidation adjustments of Ps.1,238.1 million in revenues nor Ps.435.8 million in Operating Segment Income for 2017. Consolidation adjustments are considered in the consolidated results of the Cable segment.

 

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Other  Businesses

Fourth quarter sales increased by 22.7% to Ps.2,598.0 million compared with Ps.2,118.1 million in fourth quarter 2017. The increased is mainly explained by higher revenues in our feature film distribution businesses, gaming and soccer.

Full year sales increased by 12.3% to Ps.8,635.5 million compared with Ps.7,688.3 million in 2017. The increase in revenues was mainly driven by performance in our film distribution, soccer and gaming businesses.

Fourth quarter operating segment income reached Ps.230.6 million compared with Ps.250.4 million in fourth quarter 2017.

Full year operating segment income increased by 43.5% to Ps.754.3 million compared with Ps.525.8 million in 2017, mainly reflecting a decrease in the loss of our publishing business and an increase in operating segment income of our gaming business

Corporate Expense

Corporate expense decreased by Ps.136.3 million, or 5.9%, to Ps.2,154.7 million in 2018, from Ps.2,291.0 million in 2017. The decrease reflected primarily a lower share-based compensation expense.

Share-based compensation expense in 2018 and 2017 amounted to Ps.1,327.5 million and Ps.1,489.9 million, respectively, and was accounted for as corporate expense. Share-based compensation expense is measured at fair value at the time the equity benefits are conditionally sold to officers and employees and is recognized over the vesting period.

Other Income or Expense, Net

Other income or expense, net, changed by Ps.4,015.9 million, to other income, net, of Ps.1,562.3 million in 2018, from other expense, net, of Ps.2,453.6 million in 2017. This favorable change reflected primarily (i) a Ps.3,513.8 million pre-tax gain on disposition of our 19.9% stake in Imagina Media Audiovisual, S.L. (“Imagina”), a Spanish media group, which sale was closed in June 2018 as well as a decrease in non-recurrent severance expense and donations. These favorable variances were partially offset by an impairment adjustment in connection with trademarks in our publishing business.

During fourth quarter 2018, Televisa accounted for other expense, net, of Ps.1,089.0 million, equivalent to a non-recurring increase of Ps.656.5 million from third quarter 2018. Approximately two-thirds of the quarterly increase are non-cash and originated from the impairment of certain trademarks in our publishing business and from the disposition of obsolete infrastructure in our Cable segment, as a result of the ongoing upgrades to our network. The balance of the increase is primarily explained by a one-time payment of certain taxes by Sky in Central America and by certain costs associated to the Axtel acquisition.
 
Finance Expense, Net

The following table sets forth the finance (expense) income, net, stated in millions of Mexican pesos for the years ended December 31, 2018 and 2017.

 
2018
2017
(Increase) decrease
Interest expense
(9,707.3)
(9,245.7)
(461.6)
Interest income
1,567.1
1,481.4
85.7
Foreign exchange gain, net
220.1
768.9
(548.8)
Other finance (expense) income, net
(859.6)
903.2
(1,762.8)
Finance expense, net
(8,779.7)
(6,092.2)
(2,687.5)

Finance expense, net, increased by Ps.2,687.5 million, or 44.1%, to Ps.8,779.7 million in 2018, from Ps.6,092.2 million in 2017.

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This increase reflected:
 
(i)     
an unfavorable change of Ps.1,762.8 million in other finance income or expense, net, resulting primarily from a net loss in fair value of our derivative contracts;
(ii)     
a Ps.548.8 million decrease in foreign exchange gain, net, resulting primarily from a 0.2% appreciation of the Mexican peso against the U.S. dollar in 2018, in comparison with a 4.5% appreciation in 2017, on a higher average net U.S. dollar liability position; and
(iii)     
a Ps.461.6 million increase in interest expense, primarily due to the interest rate applicable to our average Mexican peso debt position, as well as an average annual depreciation of the Mexican peso against the U.S. dollar in connection with our U.S. dollar debt position, which effect was partially offset by a lower average principal amount of debt, finance lease obligations and other notes payable during 2018.

These unfavorable variances were partially offset by a Ps.85.7 million increase in interest income, explained primarily by an increase in applicable interest rates during 2018.

Share of Income of Associates and Joint Ventures, Net

Share of income of associates and joint ventures, net, decreased by Ps.1,380.4 million, or 72.1%, to Ps.532.9 million in 2018, from Ps.1,913.3 million in 2017. This decrease reflected mainly (i) the absence of share of income of Imagina, which investment we sold in June 2018; and (ii) a lower share of income of Univision Holdings, Inc. or UHI, the controlling company of Univision Communications Inc., resulting from both a decrease in UHI’s income before income taxes, and the absence of a non-recurring tax benefit recognized by UHI in 2017.

Income Taxes

Income taxes increased by Ps.352.6 million, or 8.7%, to Ps.4,390.5 million in 2018, compared with Ps.4,037.9 million in 2017. This increase reflected a higher tax base, which was partially offset by a lower taxable inflationary gain resulting from the annual inflationary adjustment applied to the net monetary liability position of the Company and a 4.8% inflation in 2018, compared with a 6.8% inflation in 2017.

Net Income Attributable to Non-controlling Interests

Net income attributable to non-controlling interests decreased by Ps.447.1 million, or 21.8%, to Ps.1,605.9 million in 2018, compared with Ps.2,053.0 million in 2017. This decrease reflected primarily a lower portion of net income attributable to non-controlling interests in our Cable and Sky segments.
 
Financial position, liquidity and capital resources
 
Capital Expenditures

During 2018, we invested approximately U.S.$969.9 million in property, plant and equipment as capital expenditures. These capital expenditures included approximately U.S.$665.5 million for our Cable segment, U.S.$209.6 million for our Sky segment, and U.S.$94.8 million for our Content and Other Businesses segments.

On December 17, 2018, we acquired from Axtel, S.A.B. de C.V. its residential fiber-to-the-home business and related assets in Mexico City, Zapopan, Monterrey, Aguascalientes, San Luis Potosí and Ciudad Juarez. The total cash value of the transaction amounted to Ps.4,713 million.

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Debt, Finance Lease Obligations and Other Notes Payable

The following table sets forth our total debt, finance lease obligations and other notes payable as of December 31, 2018 and 2017. Amounts are stated in millions of Mexican pesos.

 
Dec 31, 2018
Dec 31, 2017
Increase (decrease)
Current portion of long-term debt
988.4
307.0
681.4
       
Long-term debt, net of current portion
120,983.6
121,993.1
(1,009.5)
       
        Total debt 1
121,972.0
122,300.1
(328.1)
       
Current portion of finance lease obligations
651.8
580.9
70.9
       
Long-term finance lease obligations
4,666.1
5,041.9
(375.8)
       
       Total finance lease obligations
5,317.9
5,622.8
(304.9)
       
Current portion of other notes payable
1,288.4
1,178.4
110.0
       
Other notes payable, net of current portion
1,288.4
2,505.6
(1,217.2)
       
       Total other notes payable 2
2,576.8
3,684.0
(1,107.2)

1 As of December 31, 2018 and 2017, total debt is presented net of finance costs in the amount of Ps.1,152.7 million and Ps.1,250.7 million, respectively, and does not include related accrued interest payable in the amount of Ps.1,120.0 million and Ps.1,796.8 million, respectively.
2 Notes payable issued in 2016, in connection with the acquisition of a non-controlling interest in Televisión Internacional, S.A. de C.V., one of our Cable segment subsidiaries.

As of December 31, 2018, our consolidated net debt position (total debt, finance leases and other notes payable, less cash and cash equivalents, temporary investments, and certain non-current investments in financial instruments) was Ps.83,318.5 million. The aggregate amount of non-current investments in financial instruments included in our consolidated net debt position as of December 31, 2018, amounted to Ps.14,448.9 million.

Shares Outstanding

As of December 31, 2018 and 2017, our shares outstanding amounted to 338,329.1 million and 342,337.1 million shares, respectively, and our CPO equivalents outstanding amounted to 2,891.7 million and 2,926.0 million, respectively. Not all of our shares are in the form of CPOs. The number of CPO equivalents is calculated by dividing the number of shares outstanding by 117.

As of December 31, 2018 and 2017, the GDS (Global Depositary Shares) equivalents outstanding amounted to 578.3 million and 585.2 million, respectively. The number of GDS equivalents is calculated by dividing the number of CPO equivalents by five.

Concessions Renewal

Televisa renewed its concession titles for the broadcast television signals known as Las Estrellas, Canal 5, Canal 9, Foro TV and other local television stations, for a term of 20 years after the existing expiration dates. For this renewal, Televisa paid Ps.5,753 million in November 2018.

Restructuring Progress and Conclusions

During the fourth quarter we concluded an extensive review to determine if we should launch a separate public entity for one or more of our core operations – Content, Cable or Sky.  We analyzed the financial, tax, and strategic implications, with a focus on total shareholder value. 
 
As a result of this analysis and with the help of our advisors, we have concluded that, under current circumstances, a partial or complete separation of our core Content, Cable or Sky assets would not create shareholder value and could reduce our competitive position in the longer term. While we will continue to evaluate our competitive position in the industry, and our continued performance and results, we expect to maintain our strategic direction focused on maximizing financial performance in our Content and Sky operations, while searching for growth opportunities by continuing our investment and acquisition strategy in Cable.


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Internal control
 
 
Disclosure of critical performance measures and indicators that management uses to evaluate entity's performance against stated objectives
 
The following amounts are stated in millions of Mexican pesos:

 
2018
Margin %
2017
Margin %
Change %
Net sales
101,282.3
100.0
93,586.2
100.0
8.2
Net income
7,615.3
7.5
6,026.4
6.4
26.4
Net income attributable to stockholders of the
   Company
6,009.4
5.9
3,973.4
4.2
51.2
Segment net sales
106,094.4
100.0
96,930.4
100.0
9.5
Operating segment income (1)
40,679.2
38.3
37,492.5
38.7
8.5
       (1) The operating segment income margin is calculated as a percentage of segment net sales.
 
Net Sales
2018
%
2017
 %
Change %
Subtotal Content
36,490.1
34.4
33,997.2
35.1
7.3
World Cup rights
2,733.6
2.6
n/a
n/a
n/a
Content
39,223.7
37.0
33,997.2
35.1
15.4
Sky
22,002.2
20.7
22,196.6
22.9
(0.9)
Cable
36,233.0
34.2
33,048.3
34.1
9.6
Other Businesses
8,635.5
8.1
7,688.3
7.9
12.3
Segment Net Sales
106,094.4
100.0
96,930.4
100.0
9.5
Intersegment Operations(1)
(4,812.1)
  
(3,344.2)
  
(43.9)
Net Sales
101,282.3
  
93,586.2
  
8.2


Operating Segment Income(2)
2018
Margin  %
2017
Margin %
Change %
Subtotal Content
13,444.6
36.8
12,825.3
37.7
4.8
World Cup rights
1,410.5
51.6
n/a
n/a
n/a
Content
14,855.1
37.9
12,825.3
37.7
15.8
Sky
9,767.3
44.4
10,106.6
45.5
(3.4)
Cable
15,302.5
42.2
14,034.8
42.5
9.0
Other Businesses
754.3
8.7
525.8
6.8
43.5
Operating Segment Income
40,679.2
38.3
37,492.5
38.7
8.5
Corporate Expenses
(2,154.7)
(2.0)
(2,291.0)
(2.4)
5.9
Depreciation and Amortization
(19,834.2)
(19.6)
(18,504.7)
(19.8)
(7.2)
Other Expense, net
1,562.3
1.5
(2,453.6)
(2.6)
n/a
Operating Income
20,252.6
20.0
14,243.2
15.2
42.2
1 For segment reporting purposes, intersegment operations are included in each of the segment operations.
2 Operating segment income is defined as operating income before depreciation and amortization, corporate expenses, and other expense, net.
 

10 of 82
 
Net Sales
4Q 2018
%
4Q 2017
%
Change %
Content
10,642.8
37.7
10,605.8
39.4
0.3
Sky
5,461.9
19.4
5,568.9
20.7
(1.9)
Cable
9,517.7
33.7
8,592.9
32.0
10.8
Other Businesses
2,598.0
9.2
2,118.1
7.9
22.7
Segment Net Sales
28,220.4
100.0
26,885.7
100.0
5.0
Intersegment Operations(1)
(1,485.1)
 
(893.7)
 
(66.2)
Net Sales
26,735.3
 
25,992.0
 
2.9
 
 
Operating Segment Income(2)
4Q 2018
Margin %
4Q 2017
Margin %
Change %
Content
4,036.7
37.9
3,919.5
37.0
3.0
Sky
2,214.6
40.5
2,324.1
41.7
(4.7)
Cable
4,005.7
42.1
3,671.7
42.7
9.1
Other Businesses
230.6
8.9
250.4
11.8
(7.9)
Operating Segment Income
10,487.6
37.2
10,165.7
37.8
3.2
Corporate Expenses
(586.8)
(2.1)
(606.2)
(2.3)
3.2
Depreciation and Amortization
(5,147.5)
(19.3)
(4,773.0)
(18.4)
(7.8)
Other Expense, net
(1,089.0)
(4.1)
(1,156.8)
(4.5)
5.9
Operating Income
3,664.3
13.7
3,629.7
14.0
1.0
1 For segment reporting purposes, intersegment operations are included in each of the segment operations.
2 Operating segment income is defined as operating income before depreciation and amortization, corporate expenses, and other expense, net.
 

Disclaimer
 
This management commentary contains forward-looking statements regarding the Company’s results and prospects. Actual results could differ materially from these statements. The forward-looking statements in these management commentary 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 these management commentary 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.
 
11 of 82
 
[110000] General information about financial statements

 
Ticker:
TLEVISA
   
Period covered by financial statements:
2018-01-01 TO 2018-12-31
   
Date of end of reporting period:
2018-12-31
   
Name of reporting entity or other means of identification:
TLEVISA
   
Description of presentation currency:
MXN
   
Level of rounding used in financial statements:
THOUSANDS OF MEXICAN PESOS
   
Consolidated:
YES
   
Number of quarter:
4
   
Type of issuer:
ICS
   
Explanation of change in name of reporting entity or other means of identification from end of preceding reporting period:
  
   
Description of nature of financial statements:
  
 

Disclosure of general information about financial statements
 
Corporate Information

Grupo Televisa, S.A.B. (the “Company”) is a limited liability public stock corporation (“Sociedad Anónima Bursátil” or “S.A.B.”), incorporated under the laws of Mexico. Pursuant to the terms of the Company’s bylaws (“Estatutos Sociales”), its corporate existence continues through 2106. The shares of the Company are listed and traded in the form of “Certificados de Participación Ordinarios” or “CPOs” on the Mexican Stock Exchange (“Bolsa Mexicana de Valores”) under the ticker symbol TLEVISA CPO, and in the form of Global Depositary Shares or GDSs, on the New York Stock Exchange, or NYSE, under the ticker symbol TV. The Company’s principal executive offices are located at Avenida Vasco de Quiroga 2000, Colonia Santa Fe, 01210 Ciudad de México, México.
 

Basis of Preparation and Accounting Policies

The condensed consolidated financial statements of the Group, as of December 31, 2018 and December 31, 2017, and for the years  ended December 31, 2018 and 2017, are unaudited, and have been prepared in accordance with the guidelines provided by the International Accounting Standard 34, Interim Financial Reporting. In the opinion of management, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included herein.

The unaudited condensed consolidated financial statements should be read in conjunction with the Group’s audited consolidated financial statements and notes thereto for the years ended December 31, 2017, 2016 and 2015, which have been prepared in accordance with International Financial Reporting Standards (“IFRSs”) as issued by the International Accounting Standards Board, and include, among other disclosures, the Group’s most significant accounting policies, which were applied on a consistent basis as of December 31, 2018, except for the guidelines provided by the IFRS 15 and IFRS 9 that became effective beginning on January 1, 2018. The adoption of the improvements and amendments to current IFRSs effective on January 1, 2018 did not have a significant impact in these interim unaudited condensed consolidated financial statements. 
 
12 of 82
 
Follow-up of analysis
 

 
The financial institutions that perform financial analysis on the securities of Grupo Televisa, S.A.B., are as follows:

Institution:

Evercore
HSBC
New Street
Merrill Lynch
Barclays
Goldman Sachs
UBS
JP Morgan
Credit Suisse
Morgan Stanley
Itau Securities
Citi
Bradesco
 
13 of 82
 
[210000] Statement of financial position, current/non-current

 
Concept
Close Current Quarter
2018-12-31
Close Previous Exercise
2017-12-31
Statement of financial position
    
Assets
    
Current assets
    
Cash and cash equivalents
32,068,291,000
38,734,949,000
Trade and other current receivables
28,225,529,000
30,357,412,000
Current tax assets, current
2,188,870,000
3,039,810,000
Other current financial assets
146,671,000
1,586,219,000
Current inventories
1,026,428,000
1,492,947,000
Current biological assets
0
0
Other current non-financial assets
[1] 8,483,237,000
5,890,866,000
Total current assets other than non-current assets or disposal groups classified as held for sale or as held for distribution to owners
72,139,026,000
81,102,203,000
Non-current assets or disposal groups classified as held for sale or as held for distribution to owners
0
0
Total current assets
72,139,026,000
81,102,203,000
Non-current assets
    
Trade and other non-current receivables
0
0
Current tax assets, non-current
0
0
Non-current inventories
0
0
Non-current biological assets
0
0
Other non-current financial assets
50,291,207,000
50,688,185,000
Investments accounted for using equity method
0
0
Investments in subsidiaries, joint ventures and associates
10,546,728,000
14,110,752,000
Property, plant and equipment
87,342,530,000
85,719,810,000
Investment property
0
0
Goodwill
14,113,626,000
14,112,626,000
Intangible assets other than goodwill
28,949,890,000
21,773,808,000
Deferred tax assets
22,154,099,000
21,355,044,000
Other non-current non-financial assets
[2] 12,305,341,000
8,357,673,000
Total non-current assets
225,703,421,000
216,117,898,000
Total assets
297,842,447,000
297,220,101,000
Equity and liabilities
    
Liabilities
    
Current liabilities
    
Trade and other current payables
41,699,815,000
44,353,813,000
Current tax liabilities, current
3,054,790,000
2,524,349,000
Other current financial liabilities
4,196,701,000
3,863,189,000
Other current non-financial liabilities
0
0
Current provisions
    
Current provisions for employee benefits
0
0
Other current provisions
1,642,000
23,466,000
Total current provisions
1,642,000
23,466,000
Total current liabilities other than liabilities included in disposal groups classified as held for sale
48,952,948,000
50,764,817,000
Liabilities included in disposal groups classified as held for sale
0
0
Total current liabilities
48,952,948,000
50,764,817,000
Non-current liabilities
    
Trade and other non-current payables
4,621,644,000
2,719,236,000
Current tax liabilities, non-current
3,141,394,000
4,730,620,000
Other non-current financial liabilities
126,938,164,000
129,540,643,000
Other non-current non-financial liabilities
0
0


14 of 82

Concept
Close Current Quarter
2018-12-31
Close Previous Exercise
2017-12-31
Non-current provisions
    
Non-current provisions for employee benefits
962,497,000
716,095,000
Other non-current provisions
54,238,000
54,263,000
Total non-current provisions
1,016,735,000
770,358,000
Deferred tax liabilities
8,390,522,000
9,037,513,000
Total non-current liabilities
144,108,459,000
146,798,370,000
Total liabilities
193,061,407,000
197,563,187,000
Equity
    
Issued capital
4,907,765,000
4,978,126,000
Share premium
15,889,819,000
15,889,819,000
Treasury shares
14,219,060,000
14,788,984,000
Retained earnings
78,981,525,000
74,432,547,000
Other reserves
4,150,664,000
5,150,256,000
Total equity attributable to owners of parent
89,710,713,000
85,661,764,000
Non-controlling interests
15,070,327,000
13,995,150,000
Total equity
104,781,040,000
99,656,914,000
Total equity and liabilities
297,842,447,000
297,220,101,000


15 of 82

 
[310000] Statement of comprehensive income, profit or loss, by function of expense
 

Concept
Accumulated Current Year
2018-01-01 - 2018-12-31
Accumulated Previous Year
2017-01-01 - 2017-12-31
Quarter Current Year
2018-10-01 - 2018-12-31
Quarter Previous Year
2017-10-01 - 2017-12-31
Profit or loss
        
Profit (loss)
        
Revenue
101,282,333,000
93,586,237,000
26,735,251,000
25,992,016,000
Cost of sales
57,839,268,000
52,983,380,000
15,490,406,000
14,915,052,000
Gross profit
43,443,065,000
40,602,857,000
11,244,845,000
11,076,964,000
Distribution costs
11,023,466,000
10,446,596,000
2,986,057,000
2,876,444,000
Administrative expenses
13,729,325,000
13,459,487,000
3,505,486,000
3,414,076,000
Other income
1,562,284,000
0
0
0
Other expense
0
2,453,572,000
1,089,090,000
1,156,722,000
Profit (loss) from operating activities
20,252,558,000
14,243,202,000
3,664,212,000
3,629,722,000
Finance income
1,787,249,000
3,153,540,000
658,840,000
1,403,446,000
Finance costs
10,566,966,000
9,245,671,000
2,973,325,000
3,650,329,000
Share of profit (loss) of associates and joint ventures accounted for using equity method
532,933,000
1,913,273,000
(377,960,000)
892,566,000
Profit (loss) before tax
12,005,774,000
10,064,344,000
971,767,000
2,275,405,000
Tax income (expense)
4,390,504,000
4,037,931,000
591,802,000
1,365,329,000
Profit (loss) from continuing operations
7,615,270,000
6,026,413,000
379,965,000
910,076,000
Profit (loss) from discontinued operations
0
0
0
0
Profit (loss)
7,615,270,000
6,026,413,000
379,965,000
910,076,000
Profit (loss), attributable to
        
Profit (loss), attributable to owners of parent
6,009,414,000
3,973,387,000
56,473,000
343,336,000
Profit (loss), attributable to non-controlling interests
1,605,856,000
2,053,026,000
323,492,000
566,740,000
Earnings per share
        
Basic earnings per share
        
Basic earnings (loss) per share from continuing operations
2.07
1.36
0.02
0.12
Basic earnings (loss) per share from discontinued operations
0
0
0
0
Total basic earnings (loss) per share
[3] 2.07
1.36
0.02
0.12
Diluted earnings per share
        
Diluted earnings (loss) per share from continuing operations
1.96
1.29
0.02
0.11
Diluted earnings (loss) per share from discontinued operations
0
0
0
0
Total diluted earnings (loss) per share
[4] 1.96
1.29
0.02
0.11

16 of 82

 
[410000] Statement of comprehensive income, OCI components presented net of tax
 

Concept
Accumulated Current Year
2018-01-01 - 2018-12-31
Accumulated Previous Year
2017-01-01 - 2017-12-31
Quarter Current Year
2018-10-01 - 2018-12-31
Quarter Previous Year
2017-10-01 - 2017-12-31
Statement of comprehensive income
        
Profit (loss)
7,615,270,000
6,026,413,000
379,965,000
910,076,000
Other comprehensive income
        
Components of other comprehensive income that will not be reclassified to profit or loss, net of tax
        
Other comprehensive income, net of tax, gains (losses) from investments in equity instruments
0
0
0
0
Other comprehensive income, net of tax, gains (losses) on revaluation
0
0
0
0
Other comprehensive income, net of tax, gains (losses) on remeasurements of defined benefit plans
133,537,000
(283,106,000)
133,537,000
(283,106,000)
Other comprehensive income, net of tax, change in fair value of financial liability attributable to change in credit risk of liability
0
0
0
0
Other comprehensive income, net of tax, gains (losses) on hedging instruments that hedge investments in equity instruments
0
0
0
0
Share of other comprehensive income of associates and joint ventures accounted for using equity method that will not be reclassified to profit or loss, net of tax
0
0
0
0
Total other comprehensive income that will not be reclassified to profit or loss, net of tax
133,537,000
(283,106,000)
133,537,000
(283,106,000)
Components of other comprehensive income that will be reclassified to profit or loss, net of tax
        
Exchange differences on translation
        
Gains (losses) on exchange differences on translation, net of tax
(859,619,000)
256,057,000
275,422,000
793,686,000
Reclassification adjustments on exchange differences on translation, net of tax
0
0
0
0
Other comprehensive income, net of tax, exchange differences on translation
(859,619,000)
256,057,000
275,422,000
793,686,000
Available-for-sale financial assets
        
Gains (losses) on remeasuring available-for-sale financial assets, net of tax
(369,661,000)
1,060,868,000
(946,534,000)
(367,240,000)
Reclassification adjustments on available-for-sale financial assets, net of tax
0
0
0
0
Other comprehensive income, net of tax, available-for-sale financial assets
(369,661,000)
1,060,868,000
(946,534,000)
(367,240,000)
Cash flow hedges
        
Gains (losses) on cash flow hedges, net of tax
122,173,000
162,231,000
337,563,000
615,891,000
Reclassification adjustments on cash flow hedges, net of tax
0
0
0
0
Amounts removed from equity and included in carrying amount of non-financial asset (liability) whose acquisition or incurrence was hedged highly probable forecast transaction, net of tax
0
0
0
0
Other comprehensive income, net of tax, cash flow hedges
122,173,000
162,231,000
337,563,000
615,891,000
Hedges of net investment in foreign operations
        
Gains (losses) on hedges of net investments in foreign operations, net of tax
0
0
0
0
Reclassification adjustments on hedges of net investments in foreign operations, net of tax
0
0
0
0
Other comprehensive income, net of tax, hedges of net investments in foreign operations
0
0
0
0


17 of 82


Concept
Accumulated Current Year
2018-01-01 - 2018-12-31
Accumulated Previous Year
2017-01-01 - 2017-12-31
Quarter Current Year
2018-10-01 - 2018-12-31
Quarter Previous Year
2017-10-01 - 2017-12-31
Change in value of time value of options
       
Gains (losses) on change in value of time value of options, net of tax
 0
 0
 0
 0
Reclassification adjustments on change in value of time value of options, net of tax
 0
 0
 0
 0
Other comprehensive income, net of tax, change in value of time value of options
 0
 0
 0
 0
Change in value of forward elements of forward contracts
        
Gains (losses) on change in value of forward elements of forward contracts, net of tax
0
0
0
0
Reclassification adjustments on change in value of forward elements of forward contracts, net of tax
0
0
0
0
Other comprehensive income, net of tax, change in value of forward elements of forward contracts
0
0
0
0
Change in value of foreign currency basis spreads
        
Gains (losses) on change in value of foreign currency basis spreads, net of tax
0
0
0
0
Reclassification adjustments on change in value of foreign currency basis spreads, net of tax
0
0
0
0
Other comprehensive income, net of tax, change in value of foreign currency basis spreads
0
0
0
0
Share of other comprehensive income of associates and joint ventures accounted for using equity method that will be reclassified to profit or loss, net of tax
(47,313,000)
(60,340,000)
(111,381,000)
(61,772,000)
Total other comprehensive income that will be reclassified to profit or loss, net of tax
(1,154,420,000)
1,418,816,000
(444,930,000)
980,565,000
Total other comprehensive income
(1,020,883,000)
1,135,710,000
(311,393,000)
697,459,000
Total comprehensive income
6,594,387,000
7,162,123,000
68,572,000
1,607,535,000
Comprehensive income attributable to
        
Comprehensive income, attributable to owners of parent
5,009,822,000
5,161,859,000
(277,561,000)
984,253,000
Comprehensive income, attributable to non-controlling interests
1,584,565,000
2,000,264,000
346,133,000
623,282,000


18 of 82
 
[520000] Statement of cash flows, indirect method
 

Concept
Accumulated Current Year
2018-01-01 - 2018-12-31
Accumulated Previous Year
2017-01-01 - 2017-12-31
Statement of cash flows
    
Cash flows from (used in) operating activities
    
Profit (loss)
7,615,270,000
6,026,413,000
Adjustments to reconcile profit (loss)
    
Discontinued operations
0
0
Adjustments for income tax expense
4,390,504,000
4,037,931,000
Adjustments for finance costs
0
0
Adjustments for depreciation and amortisation expense
19,834,202,000
18,504,765,000
Adjustments for impairment loss (reversal of impairment loss) recognised in profit or loss
135,750,000
89,597,000
Adjustments for provisions
1,891,979,000
1,713,053,000
Adjustments for unrealised foreign exchange losses (gains)
(318,087,000)
(2,396,317,000)
Adjustments for share-based payments
1,327,549,000
1,489,884,000
Adjustments for fair value losses (gains)
859,642,000
(903,204,000)
Adjustments for undistributed profits of associates
0
0
Adjustments for losses (gains) on disposal of non-current assets
912,317,000
947,699,000
Participation in associates and joint ventures
(532,933,000)
(1,913,273,000)
Adjustments for decrease (increase) in inventories
(2,523,789,000)
839,128,000
Adjustments for decrease (increase) in trade accounts receivable
3,065,139,000
(1,064,810,000)
Adjustments for decrease (increase) in other operating receivables
(1,703,088,000)
183,136,000
Adjustments for increase (decrease) in trade accounts payable
2,087,404,000
(2,696,279,000)
Adjustments for increase (decrease) in other operating payables
(3,083,160,000)
(3,596,835,000)
Other adjustments for non-cash items
0
0
Other adjustments for which cash effects are investing or financing cash flow
(3,553,463,000)
295,194,000
Straight-line rent adjustment
0
0
Amortization of lease fees
0
0
Setting property values
0
0
Other adjustments to reconcile profit (loss)
444,679,000
816,196,000
Total adjustments to reconcile profit (loss)
23,234,645,000
16,345,865,000
Net cash flows from (used in) operations
30,849,915,000
22,372,278,000
Dividends paid
0
0
Dividends received
0
0
Interest paid
(9,707,324,000)
(9,245,671,000)
Interest received
(120,134,000)
(98,218,000)
Income taxes refund (paid)
6,722,770,000
6,419,995,000
Other inflows (outflows) of cash
0
0
Net cash flows from (used in) operating activities
33,714,335,000
25,099,736,000
Cash flows from (used in) investing activities
    
Cash flows from losing control of subsidiaries or other businesses
0
(14,383,000)
Cash flows used in obtaining control of subsidiaries or other businesses
5,465,711,000
0
Other cash receipts from sales of equity or debt instruments of other entities
6,256,874,000
26,000
Other cash payments to acquire equity or debt instruments of other entities
0
0
Other cash receipts from sales of interests in joint ventures
95,161,000
0
Other cash payments to acquire interests in joint ventures
0
191,096,000
Proceeds from sales of property, plant and equipment
1,024,702,000
911,471,000
Purchase of property, plant and equipment
18,499,662,000
16,759,566,000
Proceeds from sales of intangible assets
0
0
Purchase of intangible assets
7,774,281,000
1,777,590,000
Proceeds from sales of other long-term assets
0
0
Purchase of other long-term assets
0
0


19 of 82

Concept
Accumulated Current Year
2018-01-01 - 2018-12-31
Accumulated Previous Year
2017-01-01 - 2017-12-31
Proceeds from government grants
0
0
Cash advances and loans made to other parties
0
0
Cash receipts from repayment of advances and loans made to other parties
0
0
Cash payments for future contracts, forward contracts, option contracts and swap contracts
0
0
Cash receipts from future contracts, forward contracts, option contracts and swap contracts
0
0
Dividends received
0
136,000,000
Interest paid
0
0
Interest received
0
0
Income taxes refund (paid)
0
0
Other inflows (outflows) of cash
464,843,000
364,053,000
Net cash flows from (used in) investing activities
(23,898,074,000)
(17,331,085,000)
Cash flows from (used in) financing activities
    
Proceeds from changes in ownership interests in subsidiaries that do not result in loss of control
0
0
Payments from changes in ownership interests in subsidiaries that do not result in loss of control
1,238,276,000
1,292,438,000
Proceeds from issuing shares
0
0
Proceeds from issuing other equity instruments
0
0
Payments to acquire or redeem entity's shares
2,641,180,000
2,883,808,000
Payments of other equity instruments
0
0
Proceeds from borrowings
0
10,449,958,000
Repayments of borrowings
307,489,000
11,252,655,000
Payments of finance lease liabilities
540,448,000
569,711,000
Proceeds from government grants
0
0
Dividends paid
1,068,868,000
1,084,192,000
Interest paid
10,129,304,000
8,860,881,000
Income taxes refund (paid)
0
0
Other inflows (outflows) of cash
(579,349,000)
(975,611,000)
Net cash flows from (used in) financing activities
(16,504,914,000)
(16,469,338,000)
Net increase (decrease) in cash and cash equivalents before effect of exchange rate changes
(6,688,653,000)
(8,700,687,000)
Effect of exchange rate changes on cash and cash equivalents
    
Effect of exchange rate changes on cash and cash equivalents
21,995,000
(110,447,000)
Net increase (decrease) in cash and cash equivalents
(6,666,658,000)
(8,811,134,000)
Cash and cash equivalents at beginning of period
38,734,949,000
47,546,083,000
Cash and cash equivalents at end of period
32,068,291,000
38,734,949,00


20 of 82

 
[610000] Statement of changes in equity - Accumulated Current
 

 
Components of equity
Sheet 1 of 3
Issued capital
 
Share premium
 
Treasury shares
 
Retained earnings
 
Revaluation surplus
 
Reserve of exchange differences on translation
 
Reserve of cash flow hedges
 
Reserve of gains and losses on hedging instruments that hedge investments in equity instruments
 
Reserve of change in value of time value of options
 
Statement of changes in equity
                  
Equity at beginning of period
4,978,126,000
15,889,819,000
14,788,984,000
74,432,547,000
0
2,298,822,000
561,412,000
0
0
Changes in equity
                  
Comprehensive income
                  
Profit (loss)
0
0
0
6,009,414,000
0
0
0
0
0
Other comprehensive income
0
0
0
0
0
(837,327,000)
122,173,000
0
0
Total comprehensive income
0
0
0
6,009,414,000
0
(837,327,000)
122,173,000
0
0
Issue of equity
0
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
1,068,868,000
0
0
0
0
0
Increase through other contributions by owners, equity
0
0
0
0
0
0
0
0
0
Decrease through other distributions to owners, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through other changes, equity
0
0
0
1,480,774,000
0
0
0
0
0
Increase (decrease) through treasury share transactions, equity
(70,361,000)
0
(2,764,562,000)
(2,694,201,000)
0
0
0
0
0
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity
0
0
0
(37,598,000)
0
0
0
0
0
Increase (decrease) through share-based payment transactions, equity
0
0
2,194,638,000
859,457,000
0
0
0
0
0
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of time value of options and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of forward elements of forward contracts and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of foreign currency basis spreads and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Total increase (decrease) in equity
(70,361,000)
0
(569,924,000)
4,548,978,000
0
(837,327,000)
122,173,000
0
0
Equity at end of period
4,907,765,000
15,889,819,000
14,219,060,000
78,981,525,000
0
1,461,495,000
683,585,000
0
0

21 of 82
 

 
Components of equity
Sheet 2 of 3
Reserve of change in value of forward elements of forward contracts
 
Reserve of change in value of foreign currency basis spreads
 
Reserve of gains and losses on remeasuring available-for-sale financial assets
 
Reserve of share-based payments
 
Reserve of remeasurements of defined benefit plans
 
Amount recognised in other comprehensive income and accumulated in equity relating to non-current assets or disposal groups held for sale
 
Reserve of gains and losses from investments in equity instruments
 
Reserve of change in fair value of financial liability attributable to change in credit risk of liability
 
Reserve for catastrophe
 
Statement of changes in equity
                  
Equity at beginning of period
0
0
2,747,704,000
0
(665,739,000)
0
0
0
0
Changes in equity
                  
Comprehensive income
                  
Profit (loss)
0
0
0
0
0
0
0
0
0
Other comprehensive income
0
0
(369,661,000)
0
132,536,000
0
0
0
0
Total comprehensive income
0
0
(369,661,000)
0
132,536,000
0
0
0
0
Issue of equity
0
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
0
0
0
0
0
0
Increase through other contributions by owners, equity
0
0
0
0
0
0
0
0
0
Decrease through other distributions to owners, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through other changes, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through treasury share transactions, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through share-based payment transactions, equity
0
0
0
0
0
0
0
0
0
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of time value of options and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of forward elements of forward contracts and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of foreign currency basis spreads and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Total increase (decrease) in equity
0
0
(369,661,000)
0
132,536,000
0
0
0
0
Equity at end of period
0
0
2,378,043,000
0
(533,203,000)
0
0
0
0

22 of 82
 

 
Components of equity
Sheet 3 of 3
Reserve for equalisation
 
Reserve of discretionary participation features
 
Other comprehensive income
 
Other reserves
 
Equity attributable to owners of parent
 
Non-controlling interests
 
Equity
Statement of changes in equity
              
Equity at beginning of period
0
0
208,057,000
5,150,256,000
85,661,764,000
13,995,150,000
99,656,914,000
Changes in equity
              
Comprehensive income
              
Profit (loss)
0
0
0
0
6,009,414,000
1,605,856,000
7,615,270,000
Other comprehensive income
0
0
(47,313,000)
(999,592,000)
(999,592,000)
(21,291,000)
(1,020,883,000)
Total comprehensive income
0
0
(47,313,000)
(999,592,000)
5,009,822,000
1,584,565,000
6,594,387,000
Issue of equity
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
0
1,068,868,000
1,276,562,000
2,345,430,000
Increase through other contributions by owners, equity
0
0
0
0
0
0
0
Decrease through other distributions to owners, equity
0
0
0
0
0
0
0
Increase (decrease) through other changes, equity
0
0
0
0
1,480,774,000
783,832,000
2,264,606,000
Increase (decrease) through treasury share transactions, equity
0
0
0
0
0
0
0
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity
0
0
0
0
(37,598,000)
(16,658,000)
(54,256,000)
Increase (decrease) through share-based payment transactions, equity
0
0
0
0
(1,335,181,000)
0
(1,335,181,000)
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
Amount removed from reserve of change in value of time value of options and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
Amount removed from reserve of change in value of forward elements of forward contracts and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
Amount removed from reserve of change in value of foreign currency basis spreads and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
Total increase (decrease) in equity
0
0
(47,313,000)
(999,592,000)
4,048,949,000
1,075,177,000
5,124,126,000
Equity at end of period
0
0
160,744,000
4,150,664,000
89,710,713,000
15,070,327,000
104,781,040,000

23 of 82

 
[610000] Statement of changes in equity - Accumulated Previous
 

 
Components of equity
Sheet 1 of 3
Issued capital
 
Share premium
 
Treasury shares
 
Retained earnings
 
Revaluation surplus
 
Reserve of exchange differences on translation
 
Reserve of cash flow hedges
 
Reserve of gains and losses on hedging instruments that hedge investments in equity instruments
 
Reserve of change in value of time value of options
 
Statement of changes in equity
                  
Equity at beginning of period
4,978,126,000
15,889,819,000
11,433,482,000
70,395,669,000
0
1,989,164,000
399,181,000
0
0
Changes in equity
                  
Comprehensive income
                  
Profit (loss)
0
0
0
3,973,387,000
0
0
0
0
0
Other comprehensive income
0
0
0
0
0
309,658,000
162,231,000
0
0
Total comprehensive income
0
0
0
3,973,387,000
0
309,658,000
162,231,000
0
0
Issue of equity
0
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
1,084,192,000
0
0
0
0
0
Increase through other contributions by owners, equity
0
0
0
0
0
0
0
0
0
Decrease through other distributions to owners, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through other changes, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through treasury share transactions, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through share-based payment transactions, equity
0
0
3,355,502,000
1,147,683,000
0
0
0
0
0
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of time value of options and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of forward elements of forward contracts and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of foreign currency basis spreads and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Total increase (decrease) in equity
0
0
3,355,502,000
4,036,878,000
0
309,658,000
162,231,000
0
0
Equity at end of period
4,978,126,000
15,889,819,000
14,788,984,000
74,432,547,000
0
2,298,822,000
561,412,000
0
0

24 of 82
 

 
Components of equity
Sheet 2 of 3
Reserve of change in value of forward elements of forward contracts
 
Reserve of change in value of foreign currency basis spreads
 
Reserve of gains and losses on remeasuring available-for-sale financial assets
 
Reserve of share-based payments
 
Reserve of remeasurements of defined benefit plans
 
Amount recognised in other comprehensive income and accumulated in equity relating to non-current assets or disposal groups held for sale
 
Reserve of gains and losses from investments in equity instruments
 
Reserve of change in fair value of financial liability attributable to change in credit risk of liability
 
Reserve for catastrophe
 
Statement of changes in equity
                  
Equity at beginning of period
0
0
1,686,836,000
0
(381,794,000)
0
0
0
0
Changes in equity
                  
Comprehensive income
                  
Profit (loss)
0
0
0
0
0
0
0
0
0
Other comprehensive income
0
0
1,060,868,000
0
(283,945,000)
0
0
0
0
Total comprehensive income
0
0
1,060,868,000
0
(283,945,000)
0
0
0
0
Issue of equity
0
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
0
0
0
0
0
0
Increase through other contributions by owners, equity
0
0
0
0
0
0
0
0
0
Decrease through other distributions to owners, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through other changes, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through treasury share transactions, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through share-based payment transactions, equity
0
0
0
0
0
0
0
0
0
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0