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 July, 2004 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: TLEVISA QUARTER: 2 YEAR: 2004 GRUPO TELEVISA, S.A. CONSOLIDATED FINANCIAL STATEMENT AT JUNE 30 OF 2004 AND 2003 (Thousands of Pesos) FINAL PRINTING ---------------------------------------------------------------------------------------------------------------------------------- REF QUARTER OF PRESENT QUARTER OF PREVIOUS CONCEPTS FINANCIAL YEAR FINANCIAL YEAR ------------------------------------------------------------- S Amount % Amount % ---------------------------------------------------------------------------------------------------------------------------------- 1 TOTAL ASSETS 61,376,162 100 55,181,033 100 2 CURRENT ASSETS 21,294,031 35 20,429,176 37 3 ACCOUNTS AND DOCUMENTS RECEIVABLE (NET) 11,764,519 19 10,471,695 19 4 OTHER ACCOUNTS AND DOCUMENTS RECEIVABLE 4,114,329 7 4,643,770 8 5 OTHER ACCOUNTS AND NOTES RECEIVABLE (NET) 969,949 2 685,368 1 6 INVENTORIES 3,714,792 6 4,192,531 8 7 OTHER CURRENT ASSETS 730,442 1 435,812 1 8 LONG-TERM 6,878,447 11 3,436,423 6 9 ACCOUNTS AND DOCUMENTS RECEIVABLE (NET) 0 0 0 0 10 INVESTMENT IN SHARES OF SUBSIDIARIES AND NON-CONSOLIDATED 6,553,634 11 3,278,410 6 11 OTHER INVESTMENTS 324,813 1 158,013 0 12 PROPERTY, PLANT AND EQUIPMENT 18,512,632 30 15,998,454 29 13 PROPERTY 12,493,278 20 12,155,572 22 14 MACHINERY AND INDUSTRIAL 14,531,815 24 10,433,826 19 15 OTHER EQUIPMENT 2,878,685 5 2,417,581 4 16 ACCUMULATED DEPRECIATION 12,134,438 20 10,318,362 19 17 CONSTRUCTION IN PROGRESS 743,292 1 1,309,837 2 18 DEFERRED ASSETS (NET) 9,495,306 15 9,458,693 17 19 OTHER ASSETS 5,195,746 8 5,858,287 11 20 TOTAL LIABILITIES 37,112,600 100 31,928,619 100 21 CURRENT LIABILITIES 5,157,149 14 4,594,032 14 22 SUPPLIERS 2,184,194 6 1,974,116 6 23 BANK LOANS 162,965 0 294,723 1 24 STOCK MARKET LOANS 0 0 0 0 25 TAXES TO BE PAID 735,055 2 455,651 1 26 OTHER CURRENT LIABILITIES 2,074,935 6 1,869,542 6 27 LONG-TERM LIABILITIES 21,579,641 58 15,857,602 50 28 BANK LOANS 2,026,823 5 2,142,711 7 29 STOCK MARKET LOANS 17,472,654 47 12,481,529 39 30 OTHER LOANS 2,080,164 6 1,233,362 4 31 DEFERRED LOANS 9,995,377 27 9,685,060 30 32 OTHER LIABILITIES 380,433 1 1,791,925 6 33 CONSOLIDATED STOCK HOLDERS' EQUITY 24,263,562 100 23,252,414 100 34 MINORITY INTEREST (239,481) (1) 1,216,776 5 35 MAJORITY INTEREST 24,503,043 101 22,035,638 95 36 CONTRIBUTED CAPITAL 13,184,715 54 8,244,913 35 37 PAID-IN CAPITAL STOCK (NOMINAL) 2,524,174 10 1,555,065 7 38 RESTATEMENT OF PAID-IN CAPITAL STOCK 6,722,068 28 6,461,151 28 39 PREMIUM ON SALES OF SHARES 3,938,473 16 228,697 1 40 CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES 0 0 0 0 41 CAPITAL INCREASE (DECREASE) 11,318,328 47 13,790,725 59 42 RETAINED EARNINGS AND CAPITAL RESERVE 6,647,738 27 11,911,905 51 43 REPURCHASE FUNDS OF SHARES 5,370,967 22 5,573,984 24 44 EXCESS (SHORTFALL) IN RESTATEMENT OF STOCK- HOLDERS' EQUITY (1,634,260) (7) (5,276,509) (23) 45 NET INCOME FOR THE YEAR 933,883 4 1,581,345 7 ------------------------------------------------------------------------------------------------------------------------------- MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004 GRUPO TELEVISA, S.A. CONSOLIDATED FINANCIAL STATEMENT BREAKDOWN OF MAIN CONCEPTS (Thousands of Pesos) FINAL PRINTING --------------------------------------------------------------------------------------------------------------------------------- REF QUARTER OF PRESENT QUARTER OF PREVIOUS CONCEPTS FINANCIAL YEAR FINANCIAL YEAR ------------------------------------------------------------ S Amount % Amount % --------------------------------------------------------------------------------------------------------------------------------- 3 CASH AND SHORT-TERM INVESTMENTS 11,764,519 100 10,471,695 100 46 CASH 567,365 5 295,909 3 47 SHORT-TERM INVESTMENTS 11,197,154 95 10,175,786 97 18 DEFERRED ASSETS (NET) 9,495,306 100 9,458,693 100 48 AMORTIZED OR REDEEMED EXPENSES 1,685,221 18 1,689,475 18 49 GOODWILL 7,810,085 82 7,769,218 82 50 DEFERRED TAXES 0 0 0 0 51 OTHERS 0 0 0 0 21 CURRENT LIABILITIES 5,157,149 100 4,594,032 100 52 FOREIGN CURRENCY LIABILITIES 2,421,477 47 2,037,215 44 53 MEXICAN PESOS LIABILITIES 2,735,672 53 2,556,817 56 24 STOCK MARKET LOANS 0 100 0 100 54 COMMERCIAL PAPER 0 0 0 0 55 CURRENT MATURITIES OF MEDIUM TERM NOTES 0 0 0 0 56 CURRENT MATURITIES OF BONDS 0 0 0 0 26 OTHER CURRENT LIABILITIES 2,074,935 100 1,869,542 100 57 OTHER CURRENT LIABILITIES WITH COST 69,134 3 0 0 58 OTHER CURRENT LIABILITIES WITHOUT COST 2,005,801 97 1,869,542 100 27 LONG-TERM LIABILITIES 21,579,641 100 15,857,602 100 59 FOREIGN CURRENCY LIABILITIES 15,869,743 74 11,054,417 70 60 MEXICAN PESOS LIABILITIES 5,709,898 26 4,803,185 30 29 STOCK MARKET LOANS 17,472,654 100 12,481,529 100 61 BONDS 17,472,654 100 12,481,529 100 62 MEDIUM TERM NOTES 0 0 0 0 30 OTHER LOANS 2,080,164 100 1,233,362 100 63 OTHER LOANS WITH COST 1,408,363 68 0 0 64 OTHER LOANS WITHOUT COST 671,801 32 1,233,362 100 31 DEFERRED LOANS 9,995,377 100 9,685,060 100 65 NEGATIVE GOODWILL 0 0 0 0 66 DEFERRED TAXES 780,837 8 1,078,858 11 67 OTHERS 9,214,540 92 8,606,202 89 32 OTHER LIABILITIES 380,433 100 1,791,925 100 68 RESERVES 0 0 115,007 6 69 OTHERS LIABILITIES 380,433 100 1,676,918 94 44 EXCESS (SHORTFALL) IN RESTATEMENT OF STOCK- (1,634,260) 100 (5,276,509) 100 HOLDERS' EQUITY 70 ACCUMULATED INCOME DUE TO MONETARY POSITION (30,471) (2) (30,471) (1) 71 INCOME FROM NON-MONETARY POSITION ASSETS (1,603,789) (98) (5,246,038) (99) --------------------------------------------------------------------------------------------------------------------------------- MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004 GRUPO TELEVISA, S.A. CONSOLIDATED FINANCIAL STATEMENT OTHER CONCEPTS (Thousands of Pesos) FINAL PRINTING -------------------------------------------------------------------------------------------------------------------------------- REF QUARTER OF PRESENT QUARTER OF PREVIOUS CONCEPTS FINANCIAL YEAR FINANCIAL YEAR ------------------------------------------------------------ S Amount Amount -------------------------------------------------------------------------------------------------------------------------------- 72 WORKING CAPITAL 16,136,882 15,835,144 73 PENSIONS FUND AND SENIORITY PREMIUMS 984,816 835,347 74 EXECUTIVES (*) 35 36 75 EMPLOYEES (*) 14,070 12,350 76 WORKERS (*) 0 0 77 CIRCULATION SHARES (*) 8,789,447,309 8,783,804,425 78 REPURCHASED SHARES (*) 679,100,650 316,106,980 -------------------------------------------------------------------------------------------------------------------------------- (*) THESE CONCEPTS SHOULD BE EXPRESSED IN UNITS. MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004 GRUPO TELEVISA, S.A. CONSOLIDATED STATEMENTS OF INCOME FROM JANUARY 1 TO JUNE 30, 2004 AND 2003 (Thousands of Pesos) FINAL PRINTING ----------------------------------------------------------------------------------------------------------------------------------- REF QUARTER OF PRESENT QUARTER OF PREVIOUS CONCEPTS FINANCIAL YEAR FINANCIAL YEAR ------------------------------------------------------------ R Amount % Amount % ----------------------------------------------------------------------------------------------------------------------------------- 1 NET SALES 12,690,477 100 10,996,281 100 2 COST OF SALES 7,363,352 58 6,574,059 60 3 GROSS INCOME 5,327,125 42 4,422,222 40 4 OPERATING 1,944,836 15 1,760,005 16 5 OPERATING INCOME 3,382,289 27 2,662,217 24 6 TOTAL FINANCING COST 518,150 4 368,988 3 7 INCOME AFTER FINANCING COST 2,864,139 23 2,293,229 21 8 OTHER FINANCIAL OPERATIONS 472,059 4 112,835 1 9 INCOME BEFORE TAXES AND WORKERS' PROFIT SHARING 2,392,080 19 2,180,394 20 10 RESERVE FOR TAXES AND WORKERS' PROFIT SHARING 622,540 5 613,726 6 11 NET INCOME AFTER TAXES AND WORKERS' PROFIT SHARING 1,769,540 14 1,566,668 14 12 SHARE IN NET INCOME OF SUBSIDIARIES AND NON-CONSOLIDATED ASSOCIATES 148,030 1 6,824 0 13 CONSOLIDATED NET INCOME OF CONTINUOUS OPERATIONS 1,917,570 15 1,573,492 14 14 INCOME OF DISCONTINUOUS OPERATIONS 0 0 0 0 15 CONSOLIDATED NET INCOME BEFORE EXTRAORDINARY ITEMS 1,917,570 15 1,573,492 14 16 EXTRAORDINARY ITEMS NET EXPENSES (INCOME) 0 0 0 0 17 NET EFFECT AT THE BEGINNING OF THE YEAR OF CHANGES IN ACCOUNTING PRINCIPLES 991,953 8 0 0 18 NET CONSOLIDATED INCOME 925,617 7 1,573,492 14 19 NET INCOME OF MINORITY INTEREST (8,266) 0 (7,853) 0 20 NET INCOME OF MAJORITY INTEREST 933,883 7 1,581,345 14 ----------------------------------------------------------------------------------------------------------------------------------- MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004 GRUPO TELEVISA, S.A. CONSOLIDATED STATEMENTS OF INCOME BREAKDOWN OF MAIN CONCEPTS (Thousands of Pesos) FINAL PRINTING ----------------------------------------------------------------------------------------------------------------------------------- REF QUARTER OF PRESENT QUARTER OF PREVIOUS CONCEPTS FINANCIAL YEAR FINANCIAL YEAR ------------------------------------------------------------ R Amount % Amount % ----------------------------------------------------------------------------------------------------------------------------------- 1 NET SALES 12,690,477 100 10,996,281 100 21 DOMESTIC 10,384,360 82 9,095,737 83 22 FOREIGN 2,306,117 18 1,900,544 17 23 TRANSLATED INTO DOLLARS (***) 199,889 2 174,462 2 6 TOTAL FINANCING COST 518,150 100 368,988 100 24 INTEREST PAID 734,467 142 627,039 170 25 EXCHANGE LOSSES 0 0 7,973 2 26 INTEREST EARNED 320,107 62 370,358 100 27 EXCHANGE PROFITS 64,167 12 0 28 GAIN DUE TO MONETARY POSITION 133,721 26 52,073 14 42 LOSS ON RESTATEMENT OF UDI'S 34,236 7 52,261 14 43 GAIN ON RESTATEMENT OF UDI'S 0 0 0 0 8 OTHER FINANCIAL OPERATIONS 472,059 100 112,835 100 29 OTHER NET EXPENSES (INCOME) NET 472,059 100 112,835 100 30 (PROFIT) LOSS ON SALE OF OWN SHARES 0 0 0 0 31 (PROFIT) LOSS ON SALE OF SHORT-TERM INVESTMENTS 0 0 0 0 10 RESERVE FOR TAXES AND WORKERS' PROFIT SHARING 622,540 100 613,726 100 32 INCOME TAX 608,313 98 845,174 138 33 DEFERRED INCOME TAX 11,462 2 (234,664) (38) 34 WORKERS' PROFIT SHARING 2,765 0 3,216 1 35 DEFERRED WORKERS' PROFIT SHARING 0 0 0 0 ----------------------------------------------------------------------------------------------------------------------------------- (***) THOUSANDS OF DOLLARS MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004 GRUPO TELEVISA, S.A. CONSOLIDATED STATEMENTS OF INCOME OTHER CONCEPTS (Thousands of Pesos) FINAL PRINTING ------------------------------------------------------------------------------------------------------------------------ REF QUARTER OF PRESENT QUARTER OF PREVIOUS CONCEPTS FINANCIAL YEAR FINANCIAL YEAR ------------------------------------------------- R Amount Amount ------------------------------------------------------------------------------------------------------------------------ 36 TOTAL SALES 13,637,824 11,949,718 37 NET INCOME OF THE YEAR 0 1,123,496 38 NET SALES (**) 25,640,806 23,342,992 39 OPERATION INCOME (**) 6,864,382 5,582,184 40 NET INCOME OF MAJORITY INTEREST (**) 3,007,661 996,821 41 NET CONSOLIDATED INCOME (**) 2,884,228 902,872 ------------------------------------------------------------------------------------------------------------------------ (**) THE RESTATED INFORMATION FOR THE LAST TWELVE MONTHS SHOULD BE USED MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004 GRUPO TELEVISA, S.A. QUARTERLY CONSOLIDATED STATEMENTS OF INCOME FROM APRIL 1 TO JUNE 30, 2004 AND 2003 (Thousands of Pesos) FINAL PRINTING ----------------------------------------------------------------------------------------------------------------------------------- REF QUARTER OF PRESENT QUARTER OF PREVIOUS CONCEPTS FINANCIAL YEAR FINANCIAL YEAR ------------------------------------------------------------ R Amount % Amount % ----------------------------------------------------------------------------------------------------------------------------------- 1 NET SALES 7,456,564 100 5,977,904 100 2 COST OF SALES 4,135,219 55 3,376,143 56 3 GROSS INCOME 3,321,345 45 2,601,761 44 4 OPERATING 1,100,060 15 906,263 15 5 OPERATING INCOME 2,221,285 30 1,695,498 28 6 TOTAL FINANCING COST 148,637 2 179,914 3 7 INCOME AFTER FINANCING COST 2,072,648 28 1,515,584 25 8 OTHER FINANCIAL OPERATIONS 248,981 3 (102,832) (2) 9 INCOME BEFORE TAXES AND WORKERS' PROFIT SHARING 1,823,667 24 1,618,416 27 10 RESERVE FOR TAXES AND WORKERS' PROFIT SHARING 462,683 6 420,911 7 11 NET INCOME AFTER TAXES AND WORKERS' PROFIT SHARING 1,360,984 18 1,197,505 20 12 SHARE IN NET INCOME OF SUBSIDIARIES AND NON-CONSOLIDATED ASSOCIATES 103,522 1 135,227 2 13 CONSOLIDATED NET INCOME OF CONTINUOUS OPERATIONS 1,464,506 20 1,332,732 22 14 INCOME OF DISCONTINUOUS OPERATIONS 0 0 0 0 15 CONSOLIDATED NET INCOME BEFORE EXTRAORDINARY ITEMS 1,464,506 20 1,332,732 22 16 EXTRAORDINARY ITEMS NET EXPENSES (INCOME) 0 0 0 0 17 NET EFFECT AT THE BEGINNING OF THE YEAR BY CHANGES IN ACCOUNTING PRINCIPLES 991,953 13 0 0 18 NET CONSOLIDATED INCOME 472,553 6 1,332,732 22 19 NET INCOME OF MINORITY INTEREST 10,993 0 12,202 0 20 NET INCOME OF MAJORITY INTEREST 461,560 6 1,320,530 22 ----------------------------------------------------------------------------------------------------------------------------------- MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004 GRUPO TELEVISA, S.A. QUARTERLY CONSOLIDATED STATEMENTS OF INCOME BREAKDOWN OF MAIN CONCEPTS (Thousands of Pesos) FINAL PRINTING ----------------------------------------------------------------------------------------------------------------------------------- REF QUARTER OF PRESENT QUARTER OF PREVIOUS CONCEPTS FINANCIAL YEAR FINANCIAL YEAR --------------------------------------------------------- R Amount % Amount % ----------------------------------------------------------------------------------------------------------------------------------- 1 NET SALES 7,456,564 100 5,977,904 100 21 DOMESTIC 6,214,776 83 5,001,375 84 22 FOREIGN 1,241,788 17 976,529 16 23 TRANSLATED INTO DOLLARS (***) 104,695 1 99,983 2 6 TOTAL FINANCING COST 148,637 100 179,914 100 24 INTEREST PAID 439,658 296 306,044 170 25 EXCHANGE LOSSES 0 0 103,228 57 26 INTEREST EARNED 168,425 113 196,930 109 27 EXCHANGE PROFITS 71,531 48 0 0 28 GAIN DUE TO MONETARY POSITION (25,108) (17) (42,454) (24) 42 LOSS ON RESTATEMENT OF UDI'S 0 10,026 6 43 GAIN ON RESTATEMENT OF UDI'S 25,957 17 0 0 8 OTHER FINANCIAL OPERATIONS 248,991 100 (102,832) 100 29 OTHER NET EXPENSES (INCOME) NET 248,991 100 (102,832) 100 30 (PROFIT) LOSS ON SALE OF OWN SHARES 0 0 0 0 31 (PROFIT) LOSS ON SALE OF SHORT-TERM INVESTMENTS 0 0 0 0 10 RESERVE FOR TAXES AND WORKERS' PROFIT SHARING 462,683 100 420,911 100 32 INCOME TAX 413,110 89 381,587 91 33 DEFERRED INCOME TAX 47,509 10 37,850 9 34 WORKERS' PROFIT SHARING 2,064 0 1,474 0 35 DEFERRED WORKERS' PROFIT SHARING 0 0 0 0 ----------------------------------------------------------------------------------------------------------------------------------- (***) THOUSANDS OF DOLLARS MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004 GRUPO TELEVISA, S.A. CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION FROM JANUARY 1 TO JUNE 30, 2004 AND 2003 (Thousands of Pesos) FINAL PRINTING ----------------------------------------------------------------------------------------------------------------------------------- REF QUARTER OF PRESENT QUARTER OF PREVIOUS CONCEPTS FINANCIAL YEAR FINANCIAL YEAR ------------------------------------------------------------ C Amount Amount ----------------------------------------------------------------------------------------------------------------------------------- 1 CONSOLIDATED NET INCOME 925,617 1,573,492 2 + (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE USING CASH (1,601,854) 444,996 3 CASH FLOW FROM NET INCOME OF THE YEAR (676,237) 2,018,488 4 CASH FLOW FROM CHANGE IN WORKING CAPITAL 1,509,158 407,253 5 CASH GENERATED (USED) IN OPERATING ACTIVITIES 832,921 2,425,741 6 CASH FLOW FROM EXTERNAL FINANCING 6,220,261 (475,046) 7 CASH FLOW FROM INTERNAL FINANCING (3,954,614) (919,630) 8 CASH FLOW GENERATED (USED) BY FINANCING 2,265,647 (1,394,676) 9 CASH FLOW GENERATED (USED) IN INVESTMENT ACTIVITIES (3,797,117) 155,760 10 NET INCREASE (DECREASE) IN CASH AND SHORT-TERM INVESTMENTS (698,549) 1,186,825 11 CASH AND SHORT-TERM INVESTMENTS AT THE BEGINNING OF PERIOD 12,463,068 9,284,870 12 CASH AND SHORT-TERM INVESTMENTS AT THE END OF PERIOD 11,764,519 10,471,695 ----------------------------------------------------------------------------------------------------------------------------------- MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004 GRUPO TELEVISA, S.A. CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION BREAKDOWN OF MAIN CONCEPTS (Thousands of Pesos) FINAL PRINTING ----------------------------------------------------------------------------------------------------------------------------------- REF QUARTER OF PRESENT QUARTER OF PREVIOUS CONCEPTS FINANCIAL YEAR FINANCIAL YEAR ------------------------------------------------------------ C Amount Amount ----------------------------------------------------------------------------------------------------------------------------------- 2 + (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE USING CASH (1,601,854) 444,996 13 DEPRECIATION AND AMORTIZATION FOR THE YEAR 877,838 781,727 14 + (-) NET INCREASE (DECREASE) IN PENSIONS FUND AND SENIORITY PREMIUMS 0 0 15 + (-) NET LOSS (PROFIT) IN MONEY EXCHANGE 0 0 16 + (-) NET LOSS (PROFIT) IN ASSETS AND LIABILITIES ACTUALIZATION 0 0 17 + (-) OTHER ITEMS 0 0 40 + (-) OTHER NON-EBITDA ITEMS (2,479,692) (336,731) 4 CASH FLOW FROM CHANGE IN WORKING CAPITAL 1,509,158 407,253 18 + (-) DECREASE (INCREASE) IN ACCOUNTS RECEIVABLE 6,802,153 5,396,884 19 + (-) DECREASE (INCREASE) IN INVENTORIES 398,769 (397,488) 20 + (-) DECREASE (INCREASE) IN OTHER ACCOUNT RECEIVABLE (276,154) 250,416 21 + (-) INCREASE (DECREASE) IN SUPPLIER ACCOUNTS (397,303) (381,559) 22 + (-) INCREASE (DECREASE) IN OTHER LIABILITIES (5,018,307) (4,461,000) 6 CASH FLOW FROM EXTERNAL FINANCING 6,220,261 (475,046) 23 + SHORT-TERM BANK AND STOCK MARKET FINANCING 0 0 24 + LONG-TERM BANK AND STOCK MARKET FINANCING 457,593 696,360 25 + DIVIDEND RECEIVED 0 0 26 + OTHER FINANCING 5,884,896 0 27 (-) BANK FINANCING AMORTIZATION (122,228) (240,057) 28 (-) STOCK MARKET AMORTIZATION 0 (751,869) 29 (-) OTHER FINANCING AMORTIZATION 0 (179,480) 7 CASH FLOW FROM INTERNAL FINANCING (3,954,614) (919,630) 30 + (-) INCREASE (DECREASE) IN CAPITAL STOCKS 797,173 (338,455) 31 (-) DIVIDENDS PAID (4,751,787) (581,175) 32 + PREMIUM ON SALE OF SHARES 0 0 33 + CONTRIBUTION FOR FUTURE CAPITAL INCREASES 0 0 9 CASH FLOW GENERATED (UTILIZED) IN INVESTMENT ACTIVITIES (3,797,117) 155,760 34 + (-) DECREASE (INCREASE) IN STOCK INVESTMENTS OF A PERMANENT NATURE (375,246) 52,948 35 (-) ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT (691,256) (466,835) 36 (-) INCREASE IN CONSTRUCTIONS IN PROGRESS 0 0 37 + SALE OF OTHER PERMANENT INVESTMENTS 0 0 38 + SALE OF TANGIBLE FIXED ASSETS 68,818 105,742 39 + (-) OTHER ITEMS (2,799,433) 463,905 ----------------------------------------------------------------------------------------------------------------------------------- MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004 GRUPO TELEVISA, S.A. RATIOS CONSOLIDATED FINAL PRINTING ----------------------------------------------------------------------------------------------------------------------------------- REF QUARTER OF PRESENT QUARTER OF PREVIOUS CONCEPTS FINANCIAL YEAR FINANCIAL YEAR P ----------------------------------------------------------------------------------------------------------------------------------- YIELD 1 NET INCOME TO NET SALES 7.29 % 14.31 % 2 NET INCOME TO STOCKHOLDERS' EQUITY (**) 12.27 % 4.52 % 3 NET INCOME TO TOTAL ASSETS (**) 4.70 % 1.64 % 4 CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME 0.00 % 0.00 % 5 INCOME DUE TO MONETARY POSITION TO NET INCOME (14.45) % (3.31) % ACTIVITY 6 NET SALES TO NET ASSETS (**) 0.42 times 0.42 times 7 NET SALES TO FIXED ASSETS (**) 1.39 times 1.46 times 8 INVENTORIES ROTATION (**) 4.06 times 3.36 times 9 ACCOUNTS RECEIVABLE IN DAYS OF SALES 51 days 66 days 10 PAID INTEREST TO TOTAL LIABILITIES WITH COST (**) 6.94 % 8.55 % LEVERAGE 11 TOTAL LIABILITIES TO TOTAL ASSETS 60.47 % 57.86 % 12 TOTAL LIABILITIES TO STOCKHOLDERS' EQUITY 1.53 times 1.37 times 13 FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES 49.29 % 41.00 % 14 LONG-TERM LIABILITIES TO FIXED ASSETS 116.57 % 99.12 % 15 OPERATING INCOME TO INTEREST PAID 4.61 times 4.25 times 16 NET SALES TO TOTAL LIABILITIES (**) 0.69 times 0.73 times LIQUIDITY 17 CURRENT ASSETS TO CURRENT LIABILITIES 4.13 times 4.45 times 18 CURRENT ASSETS LESS INVENTORY TO CURRENT LIABILITIES 3.41 times 3.53 times 19 CURRENT ASSETS TO TOTAL LIABILITIES 0.57 times 0.64 times 20 AVAILABLE ASSETS TO CURRENT LIABILITIES 228.12 % 227.94 % CASH FLOW 21 CASH FLOW FROM NET INCOME TO NET SALES (5.33) % 18.36 % 22 CASH FLOW FROM CHANGES IN WORKING CAPITAL TO NET SALES 11.89 % 3.70 % 23 CASH GENERATED (USED) IN OPERATING TO INTEREST PAID 1.13 times 3.87 times 24 EXTERNAL FINANCING TO CASH GENERATED (USED) IN FINANCING 274.55 % 34.06 % 25 INTERNAL FINANCING TO CASH GENERATED (USED) IN FINANCING (174.55) % 65.94 % 26 ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT TO CASH GENERATED (USED) IN INVESTMENT ACTIVITIES 18.20 % (299.71) % ----------------------------------------------------------------------------------------------------------------------------------- (**) THESE RATIOS TAKE INTO CONSIDERATION THE LAST TWELVE MONTHS. MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004 GRUPO TELEVISA, S.A. DATA PER SHARE CONSOLIDATED FINANCIAL STATEMENT FINAL PRINTING ------------------------------------------------------------------------------------------------------------------------------------ REF QUARTER OF PRESENT QUARTER OF PREVIOUS CONCEPTS FINANCIAL YEAR FINANCIAL YEAR ------------------------------------------------------------- D AMOUNT AMOUNT ------------------------------------------------------------------------------------------------------------------------------------ 1 BASIC PROFIT PER ORDINARY SHARE (**) $ .34 $ .11 2 BASIC PROFIT PER PREFERRED SHARE (**) $ .34 $ .11 3 DILUTED PROFIT PER ORDINARY SHARE (**) $ .00 $ .00 4 CONTINUOUS OPERATING PROFIT PER COMMON SHARE (**) $ .45 $ .11 5 EFFECT OF DISCONTINUOUS OPERATING ON CONTINUOUS OPERATING PROFIT PER SHARE (**) $ (.01) $ .00 6 EFFECT OF EXTRAORDINARY PROFIT AND LOSS ON CONTINUOUS OPERATING PROFIT PER SHARE (**) $ .00 $ .00 7 EFFECT OF CHANGES IN ACCOUNTING POLICIES ON CONTINUOUS OPERATING PROFIT PER SHARE (**) $ (.15) $ .00 8 CARRYING VALUE PER SHARE $ 2.79 $ 2.51 9 CASH DIVIDEND ACUMULATED PER SHARE $ .41 $ .00 10 DIVIDEND IN SHARES PER SHARE .10 shares .00 shares 11 MARKET PRICE TO CARRYING VALUE 3.09 times 2.40 times 12 MARKET PRICE TO BASIC PROFIT PER ORDINARY SHARE (**) 25.39 times 53.03 times 13 MARKET PRICE TO BASIC PROFIT PER PREFERRED SHARE (**) 25.18 times 52.53 times ------------------------------------------------------------------------------------------------------------------------------------ (**) TO CALCULATE THE DATA PER SHARE USE THE NET INCOME FOR THE LAST TWELVE MONTHS. MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004 GRUPO TELEVISA, S.A. FINANCIAL STATEMENT NOTES (1) CONSOLIDATED FINAL PRINTING ---------------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED FINANCIAL STATEMENTS - BREAKDOWN OF MAIN CONCEPTS - S 53 MEXICAN PESOS LIABILITIES. THIS CAPTION INCLUDES, IN THE SECOND QUARTER OF 2004, LIABILITIES IN FOREIGN CURRENCY (TAXES PAYABLE) FOR AN AMOUNT OF PS.55,332, WHICH CANNOT BE PRESENTED IN S 52 (FOREIGN CURRENCY LIABILITIES) SINCE THE SYSTEM DOES NOT ALLOW A RELATED VALIDATION WITH ANNEX 5 (ANALYSIS OF CREDITS). (1) THE REPORT CONTAINS THE NOTES CORRESPONDING TO THE FINANCIAL STATEMENT AMOUNTS, INCLUDING THEIR BREAKDOWN OF MAIN CONCEPTS AND OTHER CONCEPTS. MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004 GRUPO TELEVISA, S.A. CONSOLIDATED FINAL PRINTING INTEGRATION OF THE PAID SOCIAL CAPITAL STOCK CHARACTERISTICS OF THE SHARES --------------------------------------------------------------------------------------------------------------------------------- CAPITAL STOCK NUMBER OF SHARES (Thousands of Pesos) ------------------------------------------------------------------------------------------ NOMINAL VALID FIXED VARIABLE SERIES VALUE COUPON PORTION PORTION MEXICAN SUBSCRIPTION FIXED VARIABLE -------------------------------------------------------------------------------------------------------------------------------- A - 4,460,133,689 4,460,133,689 1,330,114 --------------------------------------------------------------------------------------------------------------------------------- D - 2,164,656,810 2,164,656,810 597,030 --------------------------------------------------------------------------------------------------------------------------------- L - 2,164,656,810 2,164,656,810 597,030 --------------------------------------------------------------------------------------------------------------------------------- TOTAL - 8,789,447,309 - 6,624,790,499 2,164,656,810 2,524,174 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL NUMBER OF SHARES REPRESENTING THE PAID-IN CAPITAL STOCK ON THE DATE THE INFORMATION WAS SENT 8,789,447,309 SHARES PROPORTION BY : CPO'S : THREE SHARES (ONE SERIES A, ONE SERIES D AND ONE SERIES L) UNITS : ADRS'S : GDRS'S : ADS'S : GDS'S : TWENTY CPO's SHARE REPURCHASE NUMBER OF MARKET VALUE OF THE SHARE SERIES SHARES AT REPURCHASE AT QUARTER ------------------------------------------------------------------------------------------- A 529,316,078 6.56930 8.70466 D 74,892,286 6.56930 8.70466 L 74,892,286 6.56930 8.70466 COMMENT: 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 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., JULY 26, 2004 MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004 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., JULY 26 2004 - GRUPO TELEVISA, S.A. (NYSE:TV; BMV: TLEVISA CPO) TODAY ANNOUNCED RESULTS FOR THE SECOND QUARTER 2004. THE RESULTS, HAVE BEEN PREPARED IN ACCORDANCE WITH MEXICAN GAAP, AND ADJUSTED IN MILLIONS OF MEXICAN PESOS IN PURCHASING POWER AS OF JUNE 30, 2004. AS DESCRIBED BELOW, EFFECTIVE APRIL 1, 2004, WE ADOPTED THE GUIDELINES OF THE FINANCIAL ACCOUNTING STANDARDS BOARD INTERPRETATION NO. 46, IN ACCORDANCE WITH MEXICAN GAAP BULLETIN A-8. AS A RESULT, DURING THE SECOND QUARTER, WE BEGAN CONSOLIDATING SKY MEXICO INTO OUR FINANCIAL STATEMENTS. SECOND QUARTER 2004 RESULTS INCLUDE SKY MEXICO. EFFECTIVE APRIL 1, 2004, WE ADOPTED THE GUIDELINES OF THE FINANCIAL ACCOUNTING STANDARDS BOARD INTERPRETATION NO. 46 "CONSOLIDATION OF VARIABLE INTEREST ENTITIES" (FIN 46), IN ACCORDANCE WITH MEXICAN GAAP BULLETIN A-8 "SUPPLEMENTARY APPLICATION OF INTERNATIONAL ACCOUNTING STANDARDS." FIN 46, WHICH BECAME EFFECTIVE IN 2004, ADDRESSES CONSOLIDATION BY BUSINESS ENTERPRISES OF VARIABLE INTEREST ENTITIES, OR VIES. UNDER PREVIOUS GUIDANCE, A COMPANY GENERALLY INCLUDED ANOTHER ENTITY IN ITS CONSOLIDATED FINANCIAL STATEMENTS ONLY IF IT CONTROLLED THE ENTITY THROUGH VOTING INTERESTS. FIN 46 REQUIRES A VARIABLE INTEREST ENTITY TO BE CONSOLIDATED BY A COMPANY IF THAT COMPANY IS THE "PRIMARY BENEFICIARY" OF THE ENTITY. THE PRIMARY BENEFICIARY IS SUBJECT TO A MAJORITY OF THE RISK OF LOSS FROM THE VIES ACTIVITIES, OR IS ENTITLED TO RECEIVE A MAJORITY OF THE VIES RESIDUAL RETURNS, OR BOTH. WE IDENTIFIED SKY MEXICO AS A VARIABLE INTEREST ENTITY AND US AS THE PRIMARY BENEFICIARY OF THE INVESTMENT IN SKY MEXICO, UNDER THE SCOPE OF FIN 46, AND THEREFORE, BEGINNING APRIL 1, 2004, WE BEGAN TO INCLUDE IN OUR CONSOLIDATED FINANCIAL STATEMENTS THE ASSETS, LIABILITIES AND RESULTS FROM OPERATIONS OF SKY MEXICO. BEFORE ADOPTING FIN 46, WE ACCOUNTED FOR OUR INVESTMENT IN SKY MEXICO BY APPLYING THE EQUITY METHOD, AND RECOGNIZED EQUITY IN LOSSES IN EXCESS OF OUR INVESTMENT UP TO THE AMOUNT OF THE GUARANTEES MADE BY US IN CONNECTION WITH CERTAIN CAPITAL LEASE OBLIGATIONS OF SKY MEXICO. SECOND QUARTER 2003 RESULTS DO NOT INCLUDE SKY MEXICO. FOR FURTHER INFORMATION, SEE "PRO FORMA RESULTS BY BUSINESS SEGMENTS." SECOND QUARTER 2004 NET INCOME REFLECTS A NON-CASH, ONE-TIME PS.992.0 MILLION CHARGE, RELATED TO THE CONSOLIDATION OF SKY MEXICO. FOR FURTHER INFORMATION, SEE "CUMULATIVE LOSS EFFECT OF ACCOUNTING CHANGE." NET SALES CONSOLIDATED NET SALES INCREASED 24.7% TO PS.7,456.5 MILLION IN THE SECOND QUARTER OF 2004 FROM PS.5,977.9 MILLION IN THE SECOND QUARTER OF 2003. THIS INCREASE REFLECTS: I) THE CONSOLIDATION OF THE NET SALES FROM SKY MEXICO; AND II) REVENUE GROWTH IN ALL OF OUR BUSINESS SEGMENTS, INCLUDING SIX OUT OF NINE SEGMENTS PRESENTING DOUBLE-DIGIT REVENUE GROWTH. ON A PRO FORMA BASIS, INCLUDING THE CONSOLIDATION OF SKY MEXICO, NET SALES INCREASED 9.4%. OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION SECOND QUARTER 2004 CONSOLIDATED OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION INCREASED 32.4% TO PS.2,758.3 MILLION COMPARED WITH PS.2,083.2 MILLION REPORTED IN THE LAST YEAR'S SECOND QUARTER. ON A PRO FORMA BASIS, INCLUDING THE CONSOLIDATION OF SKY MEXICO, OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION GREW 15.2%. CONSOLIDATED OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION MARGIN INCREASED TO 37.0% FROM 34.8% IN THE SAME PERIOD OF 2003, THE HIGHEST MARGIN LEVEL EVER REPORTED IN ANY SECOND QUARTER IN THE COMPANY'S HISTORY. ADDITIONALLY, OPERATING INCOME INCREASED 31.0% TO PS.2,221.2 MILLION IN THE SECOND QUARTER 2004 FROM PS.1,695.5 MILLION REPORTED IN THE SAME PERIOD OF 2003. THESE INCREASES PRIMARILY RESULTED IN REVENUE GROWTH WHICH WAS PARTIALLY OFFSET BY HIGHER COST OF SALES, OPERATING EXPENSES AND DEPRECIATION AND AMORTIZATION COSTS. THE CHARGE FOR OPERATING DEPRECIATION AND AMORTIZATION WAS OF PS.537.1 MILLION AND PS.387.7 MILLION IN THE SECOND QUARTER OF 2004 AND 2003, RESPECTIVELY. NET INCOME THE COMPANY GENERATED NET INCOME OF PS.461.6 MILLION IN THE SECOND QUARTER OF 2004 COMPARED TO NET INCOME OF PS.1,320.5 MILLION IN LAST YEAR'S SECOND QUARTER. THE NET DECREASE OF PS.858.9 MILLION REFLECTED PRIMARILY: I) A PS.992.0 MILLION CUMULATIVE LOSS EFFECT OF ACCOUNTING CHANGE, NET OF RELATED MINORITY INTEREST, IN CONNECTION WITH SKY MEXICO'S ACCUMULATED LOSSES NOT RECOGNIZED IN THE YEARS 2001, 2002, 2003 AND THE FIRST QUARTER OF 2004; II) A PS.382.5 MILLION INCREASE IN OTHER EXPENSE-NET; III) A PS.31.6 MILLION DECREASE IN EQUITY IN INCOME OF AFFILIATES; AND IV) A PS.41.8 MILLION INCREASE IN INCOME TAXES. THESE UNFAVORABLE CHANGES WERE PARTIALLY OFFSET BY: I) A PS.675.1 MILLION INCREASE IN OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION; II) A PS.31.3 MILLION DECREASE IN INTEGRAL COST OF FINANCING; AND III) A PS.30.7 MILLION DECREASE IN RESTRUCTURING AND NON-RECURRING CHARGES. PRO FORMA RESULTS BY BUSINESS SEGMENTS TELEVISION BROADCASTING THE 2.6% INCREASE IN SALES TO RECORD SECOND QUARTER RESULTS OF PS.3,990.6 MILLION AND PS.3,889.1 MILLION FOR THE SECOND QUARTER OF 2004 AND 2003, RESPECTIVELY, WAS MAINLY ATTRIBUTABLE TO: I) AN INCREASE OF ADVERTISING REVENUES, DRIVEN MAINLY BY AN OVERALL PICK-UP IN THE MEXICAN ECONOMY, COMBINED WITH THE BROADCAST OF CERTAIN SPORTING EVENTS THROUGHOUT THE QUARTER, INCLUDING THE EURO CUP AND THE MEXICAN SOCCER PREMIER LEAGUE FINAL; AND II) OUR CONTINUING SUCCESS ON REALITY SHOWS. EXCLUDING THE POLITICAL ADVERTISING RECEIVED DURING THE SECOND QUARTER OF LAST YEAR, TELEVISION BROADCASTING SALES INCREASED 18.5%. OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION INCREASED 5.6% TO A RECORD SECOND QUARTER OF PS.1,852.8 MILLION IN THE SECOND QUARTER OF 2004 FROM PS.1,754.5 MILLION REPORTED IN THE SAME PERIOD OF 2003. THIS INCREASE REFLECTS HIGHER SALES, A 2.1% REDUCTION IN OPERATING EXPENSES, WHICH WAS PARTIALLY OFFSET BY A MARGINAL 0.6% INCREASE IN COST OF SALES. AS A RESULT, OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION MARGIN INCREASED TO A HISTORIC RECORD OF 46.4% COMPARED WITH 45.1% IN THE SECOND QUARTER OF LAST YEAR. PROGRAMMING FOR PAY TELEVISION THE 10.4% INCREASE IN SALES (PS.193.6 MILLION AND PS.175.3 MILLION FOR THE SECOND QUARTER OF 2004 AND 2003, RESPECTIVELY), RESULTED FROM HIGHER REVENUES FROM SIGNALS SOLD TO PAY TELEVISION SYSTEMS IN MEXICO AND LATIN AMERICA, AS WELL AS HIGHER ADVERTISING SALES IN MEXICO. OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION INCREASED 120.9% (PS.76.0 MILLION AND PS.34.4 MILLION FOR THE SECOND QUARTER OF 2004 AND 2003, RESPECTIVELY), DUE TO INCREASED SALES COUPLED WITH A LOWER COST OF SALES AND OPERATING EXPENSES THAT INCLUDED A LOWER PROVISION FOR DOUBTFUL TRADE ACCOUNTS AND A REDUCTION OF SALES COMMISSIONS. PROGRAMMING LICENSING THE 18.1% INCREASE IN SALES (PS.523.1 MILLION AND PS.443.0 MILLION FOR THE SECOND QUARTER OF 2004 AND 2003, RESPECTIVELY), IS ATTRIBUTABLE TO A 19.2% INCREASE IN ROYALTIES PAID TO THE COMPANY BY UNIVISION UNDER THE UNIVISION PROGRAM LICENSE AGREEMENT, WHICH AMOUNTED TO U.S.$29.7 MILLION, AS WELL AS BY A POSITIVE TRANSLATION EFFECT OF FOREIGN-CURRENCY DENOMINATED SALES, WHICH AMOUNTED TO PS.25.6 MILLION. OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION INCREASED 37.2% (PS.239.9 MILLION AND PS.174.9 MILLION FOR THE SECOND QUARTER OF 2004 AND 2003, RESPECTIVELY), REFLECTING HIGHER SALES THAT WERE PARTIALLY OFFSET BY HIGHER COST OF SALES AND OPERATING EXPENSES. PUBLISHING THE 16.6% INCREASE IN SALES (PS.530.7 MILLION AND PS.455.3 MILLION FOR THE SECOND QUARTER OF 2004 AND 2003, RESPECTIVELY), WAS RELATED TO HIGHER MAGAZINE CIRCULATION AND ADVERTISING PAGES SOLD BOTH IN MEXICO AND ABROAD, AS WELL AS BY A POSITIVE TRANSLATION EFFECT OF FOREIGN-CURRENCY DENOMINATED SALES, WHICH AMOUNTED TO PS.17.2 MILLION. PUBLISHING OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION INCREASED 11.9% (PS.128.4 MILLION AND PS.114.7 MILLION FOR THE SECOND QUARTER OF 2004 AND 2003, RESPECTIVELY), REFLECTING HIGHER SALES, PARTIALLY OFFSET BY HIGHER COST OF SALES AND OPERATING EXPENSES. PUBLISHING DISTRIBUTION THE 22.4% INCREASE IN SALES (PS.472.4 MILLION AND PS.385.8 MILLION FOR THE SECOND QUARTER OF 2004 AND 2003, RESPECTIVELY), WAS RELATED TO HIGHER DISTRIBUTION SALES ABROAD AND HIGHER CIRCULATION OF MAGAZINES PUBLISHED BY THE COMPANY IN MEXICO, AS WELL AS BY A POSITIVE TRANSLATION EFFECT OF FOREIGN-CURRENCY DENOMINATED SALES, WHICH AMOUNTED TO 34.2 MILLION, BUT WAS PARTIALLY OFFSET BY LOWER CIRCULATION OF MAGAZINES PUBLISHED BY THIRD PARTIES IN MEXICO. OPERATING RESULT BEFORE DEPRECIATION AND AMORTIZATION DECREASED TO A LOSS OF PS.2.1 MILLION IN THE SECOND QUARTER OF 2004 COMPARED WITH AN INCOME OF PS.5.0 MILLION IN LAST YEAR'S SECOND QUARTER. THIS DECREASE REFLECTS HIGHER COST OF SALES AND OPERATING EXPENSES, PARTIALLY OFFSET BY HIGHER SALES. SKY MEXICO THE 19.2% INCREASE IN SALES (PS.1,174.2 MILLION AND PS.985.3 MILLION FOR THE SECOND QUARTER OF 2004 AND 2003, RESPECTIVELY), WAS ATTRIBUTABLE TO THREE FACTORS: I) AN INCREASE OF 16.0% IN OUR SUBSCRIBER BASE; II) THE ELIMINATION OF THE 10% EXCISE TAX ON TELECOMMUNICATIONS SERVICES; AND III) ADDITIONAL REVENUES FROM PAY-PER-VIEW. SKY MEXICO ADDED 52,500 SUBSCRIBERS DURING THE SECOND QUARTER REACHING 938,600 GROSS ACTIVE SUBSCRIBERS THAT INCLUDE 52,000 COMMERCIAL SUBSCRIBERS. COMPARED TO LAST YEAR'S SECOND QUARTER, GROSS ACTIVE SUBSCRIBERS INCREASED 16% FROM 809,000 INCLUDING 46,000 COMMERCIAL SUBSCRIBERS. OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION INCREASED 37.0% TO PS.425.1 MILLION IN THE SECOND QUARTER OF 2004 COMPARED WITH PS.310.3 MILLION IN LAST YEAR'S SECOND QUARTER, REFLECTING HIGHER SALES, WHICH WERE PARTIALLY OFFSET BY HIGHER COST OF SERVICES AND SALES, AND OPERATING EXPENSES. AS A RESULT, OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION MARGIN INCREASED TO 36.2% FROM 31.5%. CABLE TELEVISION THE 9.9% INCREASE IN SALES TO PS.274.5 MILLION AND PS.249.8 MILLION FOR THE SECOND QUARTER OF 2004 AND 2003, RESPECTIVELY, WAS PRIMARILY ATTRIBUTABLE TO THE ELIMINATION OF THE 10% EXCISE TAX ON TELECOMMUNICATIONS SERVICES. OUR CABLE TELEVISION SEGMENT ADDED 6,800 GROSS ACTIVE SUBSCRIBERS DURING THE SECOND QUARTER, REACHING 372,700 GROSS ACTIVE SUBSCRIBERS, OF WHICH OVER 73,800 ARE DIGITAL SUBSCRIBERS. OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION INCREASED 45.0% TO PS.104.8 MILLION AND PS.72.3 MILLION FOR THE SECOND QUARTER OF 2004 AND 2003, RESPECTIVELY, DUE TO HIGHER SALES AND LOWER COST OF SALES THAT WERE PARTIALLY OFFSET BY HIGHER OPERATING EXPENSES. AS A RESULT, OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION MARGIN INCREASED TO 38.2% FROM 28.9%. RADIO RADIO SALES INCREASED 4.2% TO PS.67.7 MILLION AND PS.65.0 MILLION FOR THE SECOND QUARTER OF 2004 AND 2003, RESPECTIVELY, DUE TO HIGHER ADVERTISING TIME SOLD, WHICH WAS MAINLY DRIVEN BY OUR NEWSCASTS AND SPORTING PROGRAMS. OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION INCREASED 15.8% TO PS.8.8 MILLION COMPARED WITH PS.7.6 MILLION REPORTED IN THE SAME PERIOD A YEAR AGO. THIS INCREASE WAS ATTRIBUTABLE TO HIGHER SALES AND WAS PARTIALLY OFFSET BY HIGHER COST OF SALES AND OPERATING EXPENSES. IN JUNE 2004, OUR RADIO SEGMENT AFFILIATED 41 NEW RADIO STATIONS (22 AM AND 19 FM), EXPANDING ITS NETWORK TO 71 STATIONS, REACHING 33 CITIES IN MEXICO. OTHER BUSINESSES THE 27.7% INCREASE IN SALES (PS.377.3 MILLION AND PS.295.5 MILLION FOR THE SECOND QUARTER OF 2004 AND 2003, RESPECTIVELY), WAS RELATED TO HIGHER SALES IN THE DISTRIBUTION OF FEATURE FILMS, INTERNET AND SPORT BUSINESSES. OPERATING LOSS BEFORE DEPRECIATION AND AMORTIZATION DECREASED TO PS.37.5 MILLION FROM PS.53.1 MILLION IN LAST YEAR'S COMPARABLE PERIOD. THIS FAVORABLE VARIANCE WAS LED BY HIGHER SALES AND LOWER OPERATING EXPENSES AND WAS PARTIALLY OFFSET BY HIGHER COST OF SALES, RELATED TO OUR DISTRIBUTION OF FEATURE FILMS AND SPORT BUSINESSES. INTERSEGMENT SALES INTERSEGMENT SALES FOR THE SECOND QUARTER OF 2004 AND 2003, AMOUNTED TO PS.190.5 MILLION AND PS.202.3 MILLION, RESPECTIVELY. CORPORATE EXPENSES CORPORATE EXPENSES FOR THE SECOND QUARTER OF 2004 AND 2003, AMOUNTED TO PS.44.3 MILLION AND PS.47.4 MILLION, RESPECTIVELY. EFFECTIVE APRIL 1, 2004, WE BEGAN CONSOLIDATING SKY MEXICO INTO OUR CONSOLIDATED FINANCIAL STATEMENTS. THEREFORE, SECOND QUARTER 2003 RESULTS DO NOT INCLUDE SKY MEXICO. INTEGRAL COST OF FINANCING INTEGRAL COST OF FINANCING DECREASED BY PS.31.3 MILLION, OR 17.4%, TO PS.148.6 MILLION IN THE SECOND QUARTER OF 2004 FROM PS.179.9 MILLION IN THE SECOND QUARTER OF 2003. THIS DECREASE REFLECTS PRIMARILY A FAVORABLE PS.438.1 MILLION CHANGE RESULTING FROM A POSITIVE HEDGE EFFECT ON OUR U.S.$600 MILLION LONG-TERM DEBT HEDGED BY OUR NET INVESTMENT IN UNIVISION IN THE SECOND QUARTER OF 2004 COMPARED TO A NEGATIVE HEDGE EFFECT IN THE SECOND QUARTER OF 2003. THE HEDGE EFFECT WAS POSITIVELY AFFECTED BY A 3.25% DEPRECIATION OF THE MEXICAN PESO AGAINST THE U.S. DOLLAR DURING THE SECOND QUARTER OF 2004, COMPARED TO A 3.28% APPRECIATION OF THE MEXICAN PESO AGAINST THE U.S. DOLLAR DURING THE SECOND QUARTER OF 2003. THIS FAVORABLE VARIANCE WAS OFFSET BY: I) A PS.97.6 MILLION INCREASE IN INTEREST EXPENSE, PRIMARILY AS A RESULT OF AN INCREASE IN THE AVERAGE AMOUNT OF OUR DEBT DURING THE SECOND QUARTER OF 2004 COMPARED TO THE SECOND QUARTER OF 2003, IN CONNECTION WITH THE CONSOLIDATION OF SKY MEXICO'S DEBT AT THE BEGINNING OF THE SECOND QUARTER OF 2004; II) A PS.28.5 MILLION DECREASE IN INTEREST INCOME IN THE SECOND QUARTER OF 2004 COMPARED TO LAST YEAR'S SECOND QUARTER, REFLECTING SKY MEXICO'S CAPITALIZATION IN SEPTEMBER 2003 OF ALL OF THE AMOUNTS DUE TO US IN CONNECTION WITH CERTAIN FINANCING PROVIDED TO THIS JOINT VENTURE, WHICH EFFECT WAS PARTIALLY OFFSET BY AN INCREASE IN INTEREST INCOME IN CONNECTION WITH A HIGHER AVERAGE AMOUNT OF TEMPORARY INVESTMENTS DURING THE SECOND QUARTER OF 2004 COMPARED TO THE SECOND QUARTER OF 2003; III) A PS.263.4 MILLION UNFAVORABLE CHANGE RESULTING FROM A NET FOREIGN EXCHANGE LOSS IN THE SECOND QUARTER OF 2004 COMPARED TO A NET FOREIGN EXCHANGE GAIN IN THE SECOND QUARTER OF 2003, PRIMARILY DUE TO A HIGHER FOREIGN CURRENCY LIABILITY POSITION IN CONNECTION WITH THE CONSOLIDATION OF THE SKY MEXICO'S FOREIGN CURRENCY DEBT BEGINNING IN THE SECOND QUARTER OF 2004, AS WELL AS A RESULT OF THE MEXICAN PESO DEPRECIATION IN THE SECOND QUARTER OF 2004 AND THE MEXICAN PESO APPRECIATION IN THE SECOND QUARTER OF 2003; AND IV) A PS.17.3 MILLION DECREASE IN GAIN FROM MONETARY POSITION AS A RESULT OF A HIGHER MONETARY LOSS ARISING IN CALCULATING OUR DEFERRED INCOME TAX PROVISION, WHICH EFFECT WAS PARTIALLY OFFSET BY A HIGHER NET LIABILITY MONETARY POSITION DURING THE SECOND QUARTER OF 2004 COMPARED TO THE SECOND QUARTER OF 2003. RESTRUCTURING AND NON-RECURRING CHARGES RESTRUCTURING AND NON-RECURRING CHARGES DECREASED BY PS.30.7 MILLION, OR 68.4%, TO PS.14.2 MILLION FOR THE SECOND QUARTER OF 2004 COMPARED TO PS.44.9 MILLION FOR THE SECOND QUARTER OF 2003. THIS DECREASE PRIMARILY REFLECTS LOWER RESTRUCTURING CHARGES IN CONNECTION WITH WORK FORCE REDUCTIONS. OTHER EXPENSE/INCOME-NET OTHER EXPENSE INCREASED BY PS.382.5 MILLION TO PS.234.7 MILLION FOR THE SECOND QUARTER OF 2004 FROM OTHER INCOME OF PS.147.8 MILLION FOR THE SECOND QUARTER OF 2003. THIS INCREASE PRIMARILY REFLECTS A LOSS ON DISPOSITION OF OUR 30.0% MINORITY INTEREST IN THE CAPITAL STOCK OF GRUPO EUROPRODUCCIONES, A TELEVISION PROGRAMMING PRODUCTION COMPANY IN SPAIN, IN THE SECOND QUARTER OF 2004, VERSUS A GAIN ON DISPOSITION OF A PORTION OF OUR MINORITY INTEREST IN A DTH VENTURE IN SPAIN IN THE SECOND QUARTER OF 2003. THIS LOSS WAS PARTIALLY OFFSET BY A REDUCTION IN AMORTIZATION OF GOODWILL IN THE SECOND QUARTER OF 2004 AS WE CEASED AMORTIZING THIS INTANGIBLE ASSET BEGINNING JANUARY 1, 2004, IN ACCORDANCE WITH MEXICAN GAAP BULLETIN B-7 RELATED TO BUSINESS ACQUISITIONS. INCOME TAX INCOME TAX INCREASED BY PS.41.8 MILLION, OR 9.9%, TO PS.462.7 MILLION FOR THE SECOND QUARTER OF 2004 FROM PS.420.9 MILLION FOR THE SECOND QUARTER OF 2003. THIS INCREASE REFLECTS AN INCREASED INCOME TAX BASE FOR 2004 COMPARED WITH 2003. EQUITY IN INCOME OF AFFILIATES EQUITY IN INCOME OF AFFILIATES DECREASED BY PS.31.6 MILLION, OR 23.4%, TO PS.103.5 MILLION FOR THE SECOND QUARTER OF 2004 COMPARED TO PS.135.1 MILLION IN THE SECOND QUARTER OF 2003. THIS DECREASE PRIMARILY REFLECTS THE ABSENCE OF EQUITY INCOME OF SKY MEXICO IN THE SECOND QUARTER OF 2004 COMPARED TO THE SECOND QUARTER OF 2003, WHICH WAS PARTIALLY OFFSET BY AN INCREASE IN OUR EQUITY INCOME OF UNIVISION IN THE SECOND QUARTER OF 2004 COMPARED TO THE SECOND QUARTER OF 2003. CUMULATIVE LOSS EFFECT OF ACCOUNTING CHANGE WE RECOGNIZED APPROXIMATELY A PS.992.0 MILLION CUMULATIVE LOSS EFFECT OF ACCOUNTING CHANGE, NET OF MINORITY INTEREST IN OUR CONSOLIDATED STATEMENT OF INCOME IN CONNECTION WITH SKY MEXICO'S ACCUMULATED LOSSES NOT RECOGNIZED IN THE YEARS 2001, 2002, 2003 AND THE FIRST QUARTER OF 2004. OTHER RELEVANT INFORMATION CAPITAL EXPENDITURES, ACQUISITIONS AND INVESTMENTS IN THE SECOND QUARTER OF 2004, WE INVESTED APPROXIMATELY U.S.$48.6 MILLION IN PROPERTY, PLANT AND EQUIPMENT AS CAPITAL EXPENDITURES, OF WHICH APPROXIMATELY U.S.$4.0 MILLION IS RELATED TO THE CABLE TELEVISION SEGMENT AND U.S.$16.8 MILLION IS RELATED TO SKY MEXICO. ADDITIONALLY, WE INVESTED APPROXIMATELY U.S.$2.7 MILLION IN LONG-TERM LOANS MADE TO OUR LATIN AMERICAN DTH JOINT-VENTURES. DEBT AS OF JUNE 30, 2004, OUR LONG-TERM DEBT AMOUNTED TO PS.19,499.4 MILLION, INCLUDING PS.4,476.3 MILLION FROM SKY MEXICO WHICH IS NOT GUARANTEED BY GRUPO TELEVISA, AND OUR CURRENT PORTION OF DEBT WAS PS.163.0 MILLION. AS OF JUNE 30, 2003, OUR LONG-TERM DEBT AMOUNTED TO PS.14,919.0 MILLION, AND OUR CURRENT PORTION OF DEBT WAS PS.294.8 MILLION. IN MAY 2004, WE ENTERED INTO A FIVE-YEAR CREDIT AGREEMENT WITH A MEXICAN BANK FOR AN AGGREGATE PRINCIPAL AMOUNT OF PS.1,162.5 MILLION, WHICH NET PROCEEDS WERE USED TO REPAY ANY OUTSTANDING AMOUNTS UNDER THE U.S.$100.0 MILLION SYNDICATED TERM LOAN. ON JUNE 17, 2004, FITCH RATINGS UPGRADED OUR LONG-TERM FOREIGN CURRENCY RATING TO "BBB" FROM "BBB-" AND AFFIRMED ITS OUTLOOK AT STABLE. THIS FOLLOWED THE ANNOUNCEMENT THAT FITCH HAD ASSIGNED COUNTRY CEILING RATINGS ABOVE THE LONG-TERM FOREIGN CURRENCY RATING OF THE SOVEREIGN FOR CERTAIN COUNTRIES, INCLUDING MEXICO. AS A RESULT OF THIS ANNOUNCEMENT, TELEVISA IS ONE RATING LEVEL ABOVE MEXICO'S SOVEREIGN LONG-TERM FOREIGN CURRENCY RATING. SHARE BUYBACK PROGRAM DURING THE SECOND QUARTER OF 2004, THE COMPANY REPURCHASED APPROXIMATELY 46.5 MILLION SHARES IN THE FORM OF 15.5 MILLION CPOS FOR A NET AMOUNT OF APPROXIMATELY PS.371.8 MILLION IN NOMINAL TERMS. DIVIDEND PAYMENT ON MAY 21, 2004, THE COMPANY MADE A PS.3,850 MILLION CASH DISTRIBUTION TO SHAREHOLDERS, EQUIVALENT TO PS.1.219 PER CPO, WHICH INCLUDES A DIVIDEND CORRESPONDING TO THE SERIES A AND L SHARES AND THE CUMULATIVE PREFERRED DIVIDEND CORRESPONDING TO SERIES D SHARES. UNDER OUR RECENTLY ANNOUNCED DIVIDEND POLICY, WE EXPECT TO CONTINUE PAYING DIVIDENDS ANNUALLY. TELEVISION RATINGS AND AUDIENCE SHARE NATIONAL URBAN RATINGS AND AUDIENCE SHARE REPORTED BY IBOPE CONFIRM THAT IN THE SECOND QUARTER OF 2004 TELEVISA CONTINUE TO DELIVER STRONG RATINGS AND AUDIENCE SHARES. DURING WEEKDAY PRIME TIME (19:00 TO 23:00 - MONDAY TO FRIDAY), AUDIENCE SHARE AMOUNTED TO 70.5%; IN PRIME TIME (16:00 TO 23:00 - MONDAY TO SUNDAY), AUDIENCE SHARE AMOUNTED TO 69.5%; AND IN SIGN-ON TO SIGN-OFF (6:00 TO 24:00 - MONDAY TO SUNDAY), AUDIENCE SHARE AMOUNTED TO 71.8%. IN JUNE 2004, TWO OF THE NINE TEAMS, IN WHICH THE COMPANY HAS EXCLUSIVE RIGHTS TO BROADCAST ITS HOME GAMES, PLAYED THE FINAL GAMES OF THE MEXICAN SOCCER PREMIER LEAGUE, HELD IN GUADALAJARA AND IN MEXICO CITY. DURING THE LATTER, THE TRANSMISSION REACHED ON AVERAGE 72.5% AUDIENCE SHARE FROM 11:45 TO 15:00, REACHING ITS AUDIENCE PEAK AT 79.7%. OUTLOOK FOR 2004 WE ARE RAISING OUR GUIDANCE FOR THE YEAR. WE NOW EXPECT OUR TELEVISION BROADCASTING REVENUE TO INCREASE BETWEEN 3% AND 4% FOR THE YEAR. DESPITE THE PRODUCTION AND TRANSMISSION OF THE OLYMPIC GAMES, WE REMAIN COMMITTED TO KEEPING COSTS AND EXPENSES OF OUR TELEVISION BROADCASTING SEGMENT FLAT DURING THE YEAR. WE THEREFORE EXPECT OUR TELEVISION BROADCASTING SEGMENT TO EXCEED LAST YEAR'S OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION MARGIN. GRUPO TELEVISA S.A., IS THE LARGEST MEDIA COMPANY IN THE SPANISH-SPEAKING WORLD, AND A MAJOR PLAYER IN THE INTERNATIONAL ENTERTAINMENT BUSINESS. IT HAS INTERESTS IN TELEVISION PRODUCTION AND BROADCASTING, PROGRAMMING FOR PAY TELEVISION, INTERNATIONAL DISTRIBUTION OF TELEVISION PROGRAMMING, DIRECT-TO-HOME SATELLITE SERVICES, PUBLISHING AND PUBLISHING DISTRIBUTION, CABLE TELEVISION, RADIO PRODUCTION AND BROADCASTING, PROFESSIONAL SPORTS AND SHOW BUSINESS PROMOTIONS, FEATURE FILM PRODUCTION AND DISTRIBUTION, AND THE OPERATION OF A HORIZONTAL INTERNET PORTAL. GRUPO TELEVISA ALSO HAS AN UNCONSOLIDATED EQUITY STAKE IN UNIVISION, THE LEADING SPANISH-LANGUAGE TELEVISION COMPANY IN THE UNITED STATES. 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. MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004 GRUPO TELEVISA, S.A. FINANCIAL STATEMENT NOTES (1) ANNEX 2 CONSOLIDATED FINAL PRINTING --------------------------------------------------------------------------- GRUPO TELEVISA, S.A. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2004 AND 2003 (IN THOUSANDS OF MEXICAN PESOS IN PURCHASING POWER AS OF JUNE 30, 2004, 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 JUNE 30, 2004 AND 2003, AND FOR THE SIX MONTHS 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 YEARS ENDED DECEMBER 31, 2003 AND 2002, WHICH INCLUDE, AMONG OTHER DISCLOSURES, THE GROUP'S MOST SIGNIFICANT ACCOUNTING POLICIES, WHICH HAVE BEEN APPLIED ON A CONSISTENT BASIS FOR THE SIX MONTHS ENDED JUNE 30, 2004, EXCEPT FOR THE MATTER DISCUSSED IN THE FOLLOWING PARAGRAPH. EFFECTIVE JANUARY 1, 2004, IN CONNECTION WITH THE ADOPTION OF MEXICAN GAAP BULLETIN B-7, "BUSINESS ACQUISITIONS," GOODWILL IS DEEMED AN INTANGIBLE ASSET WITH AN INDEFINITE USEFUL LIVE, AND ACCORDINGLY, THE GROUP NO LONGER AMORTIZE GOODWILL EFFECTIVE THAT DATE. BEFORE 2004, GOODWILL WAS AMORTIZED OVER A PERIOD OF 20 YEARS. BEGINNING APRIL 1, 2004, THE GROUP BEGAN TO INCLUDE IN ITS CONSOLIDATED FINANCIAL STATEMENTS THE ASSETS, LIABILITIES AND RESULTS OF OPERATIONS OF INNOVA, S. DE R.L. DE C.V. ("INNOVA"), A JOINT VENTURE ENGAGED IN DIRECT-TO-HOME ("DTH") BROADCAST SATELLITE PAY TELEVISION IN WHICH THE GROUP HAS A 60% INTEREST. INNOVA'S FINANCIALS ARE CONSOLIDATED IN ACCORDANCE WITH THE GUIDELINES OF THE FINANCIAL ACCOUNTING STANDARDS BOARD INTERPRETATION NO. 46 ("FIN 46"), "CONSOLIDATION OF VARIABLE INTEREST ENTITIES," WHICH WAS ADOPTED BY THE GROUP ON APRIL 1, 2004 (SEE NOTE 11). 2. PROPERTY, PLANT AND EQUIPMENT: PROPERTY, PLANT AND EQUIPMENT AS OF JUNE 30, CONSISTED OF: 2004 2003 -------------------- ------------------ BUILDINGS Ps. 7,233,293 Ps. 6,899,271 BUILDING IMPROVEMENTS 1,665,419 1,658,357 TECHNICAL EQUIPMENT 14,531,815 10,433,826 FURNITURE AND FIXTURES 597,131 559,881 TRANSPORTATION EQUIPMENT 1,079,603 1,029,324 COMPUTER EQUIPMENT 1,201,951 828,376 -------------------- ------------------ 26,309,212 21,409,035 ACCUMULATED DEPRECIATION (12,134,438)) (10,318,362) -------------------- ------------------ 14,174,774 11,090,673 LAND 3,594,566 3,597,944 CONSTRUCTION IN PROGRESS 743,292 1,309,837 -------------------- ------------------ Ps. 18,512,632 Ps. 15,998,454 ==================== ================== DEPRECIATION CHARGED TO INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2004 AND 2003, WAS PS.773,114 AND PS.573,814, RESPECTIVELY. 3. LONG-TERM DEBT SECURITIES: AS OF JUNE 30, THE COMPANY'S LONG-TERM DEBT SECURITIES OUTSTANDING WERE AS FOLLOWS: 2004 2003 -------------------------------- ----------------------------- U.S. DOLLAR U.S. DOLLAR PRINCIPAL PRINCIPAL AMOUNTS MEXICAN AMOUNTS MEXICAN (THOUSANDS) PESOS (THOUSANDS) PESOS -------------- ---------------- ------------ --------------- 11.875% SERIES "B" SENIOR NOTES DUE 2006 (A) $ 5,343 Ps. 61,642 $ 5,343 Ps. 58,205 8.625% SENIOR NOTES DUE 2005 (B) 200,000 2,307,400 200,000 2,178,747 8.000% SENIOR NOTES DUE 2011 (C) 300,000 3,461,100 300,000 3,268,120 8.500% SENIOR NOTES DUE 2032 (D) 300,000 3,461,100 300,000 3,268,120 12.875% SENIOR NOTES DUE 2007 (E) 88,000 1,015,256 - - 9.375% SENIOR NOTES DUE 2013 (F) 300,000 3,461,100 - - -------------- ---------------- ------------ --------------- $ 1,193,343 13,767,598 $ 805,343 8,773,192 ============== ============ UDI-DENOMINATED NOTES DUE 2007 (G) 3,705,056 3,708,337 ---------------- --------------- Ps. 17,472,654 Ps. 12,481,529 ================ ===============(A) INTEREST ON THE SERIES "B" SENIOR NOTES, INCLUDING ADDITIONAL AMOUNTS PAYABLE IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 12.49% PER ANNUM, AND IS PAYABLE SEMI-ANNUALLY. 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, AND 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. (B) INTEREST ON THESE SENIOR NOTES, INCLUDING ADDITIONAL AMOUNTS PAYABLE IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 9.07% PER ANNUM, AND IS PAYABLE SEMI-ANNUALLY. (C) INTEREST ON THESE SENIOR NOTES, INCLUDING ADDITIONAL AMOUNTS PAYABLE IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 8.41% PER ANNUM, AND IS PAYABLE SEMI-ANNUALLY. (D) INTEREST ON THESE SENIOR NOTES, INCLUDING ADDITIONAL AMOUNTS PAYABLE IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 8.94% PER ANNUM, AND IS PAYABLE SEMI-ANNUALLY. (E) INNOVA'S SENIOR NOTES. INTEREST ON THESE SENIOR NOTES, INCLUDING ADDITIONAL AMOUNTS PAYABLE IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 13.54% PER ANNUM, AND IS PAYABLE SEMI-ANNUALLY. THESE SECURITIES ARE UNCOLLATERALIZED, UNSUBORDINATED OBLIGATIONS OF INNOVA AND CONTAIN CERTAIN COVENANTS RELATING TO INNOVA SIMILAR TO THOSE OF THE SENIOR NOTES DUE 2013. (F) INNOVA'S SENIOR NOTES. INTEREST ON THESE SENIOR NOTES, INCLUDING ADDITIONAL AMOUNTS PAYABLE IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 9.86% PER ANNUM, AND IS PAYABLE SEMI-ANNUALLY. THESE SECURITIES ARE UNSECURED AND UNSUBORDINATED OBLIGATIONS OF INNOVA AND CONTAIN CERTAIN COVENANTS RELATING TO INNOVA, INCLUDING COVENANTS WITH RESPECT TO: (I) LIMITATIONS ON ADDITIONAL INDEBTEDNESS; (II) LIMITATIONS ON LIENS; (III) LIMITATIONS ON SALES AND LEASEBACKS; (IV) LIMITATIONS ON RESTRICTED PAYMENTS; (V) LIMITATIONS ON ASSETS SALES; AND (VI) LIMITATIONS ON CERTAIN MERGERS, CONSOLIDATIONS AND SIMILAR TRANSACTIONS. INNOVA MAY, AT ITS OWN OPTION, REDEEM THESE SECURITIES, IN WHOLE OR IN PART, AT ANY TIME IN OR AFTER SEPTEMBER 2008 AT REDEMTION PRICES (EXPRESSED IN PERCENTAGES OF THE PRINCIPAL AMOUNT) , PLUS ACCRUED AND UNPAID INTEREST, IF ANY, IN THE RANGE OF 104.6875% TO 100%. ADDITIONALLY, IN OR BEFORE SEPTEMBER 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. (G) NOTES DENOMINATED IN MEXICAN INVESTMENT UNITS ("UNIDADES DE INVERSION" OR "UDIS") FOR A NOMINAL AMOUNT OF PS.3,000,000, REPRESENTING 1,086,007,800 UDIS, WITH AN ANNUAL INTEREST RATE OF 8.15% AND MATURITY IN 2007. INTEREST ON THESE NOTES IS PAYABLE SEMI-ANNUALLY. THE BALANCE AS OF JUNE 30, 2004 AND 2003 INCLUDES RESTAMENT OF PS.705,065 AND PS.566,548, RESPECTIVELY. THE UDI VALUE AS OF JUNE 30, 2004, WAS OF PS. 3.411629 PER ONE UDI. THE SENIOR NOTES DUE IN 2005, 2006, 2011 AND 2032 MAY NOT BE REEDEMED 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 IN 2005, 2011 AND 2032 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. THE AGREEMENT OF THE SENIOR NOTES DUE 2005, 2011 AND 2032 CONTAINS CERTAIN COVENANTS THAT LIMIT THE ABILITY OF THE COMPANY AND ITS RESTRICTED SUBSIDIARIES ENGAGED IN TELEVISION BROADCASTING, PROGRAMMING FOR PAY TELEVISION AND PROGRAMMING LICENSING, TO INCUR OR ASSUME LIENS, PERFORM SALE AND LEASEBACK TRANSACTIONS, AND CONSUMMATE CERTAIN MERGERS, CONSOLIDATIONS AND SIMILAR TRANSACTIONS. SUBSTANTIALLY ALL OF THE SENIOR NOTES DUE 2005, 2011 AND 2032 ARE REGISTERED WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION. EFFECTIVE MARCH 1, 2002, THE GROUP DESIGNATED ITS NET INVESTMENT IN UNIVISION AS AN EFFECTIVE HEDGE OF THE PRINCIPAL AMOUNT OF ITS SENIOR NOTES DUE IN 2011 AND 2032. CONSEQUENTLY, BEGINNING MARCH 2002, 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). 4. CONTINGENCIES: PAYMENTS TO BE MADE BY CERTAIN MEXICAN COMPANIES IN THE GROUP TO EMPLOYEES IN CASE OF DISMISSAL AND UNDER CERTAIN CIRCUMSTANCES PROVIDED BY THE MEXICAN LABOR LAW WILL BE EXPENSED AS INCURRED. IN CONJUNCTION WITH THE GROUP'S DISPOSAL OF ITS FORMER MUSIC RECORDING BUSINESS IN 2002, THE GROUP MAY HAVE TO PAY CERTAIN ADJUSTMENTS TO UNIVISION IN CONNECTION WITH AN AUDIT OF THE MUSIC RECORDING BUSINESS BY UNIVISION, WHICH IS EXPECTED TO BE RESOLVED BY THE PARTIES IN THE SECOND HALF OF 2004. WHILE THE GROUP'S MANAGEMENT BELIEVES THAT THE OUTCOME OF THIS AUDIT WILL NOT HAVE A MATERIAL ADVERSE EFFECT ON ITS FINANCIAL POSITION OR FUTURE OPERATING RESULTS, NO ASSSURANCE CAN BE GIVEN IN THIS REGARD. 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 JUNE 30, IS ANALYZED AS FOLLOWS: 2004 2003 ----------------------------- ------------------------------ NOMINAL RESTATED NOMINAL RESTATED PESOS PESOS PESOS PESOS ------------- ------------------------------- --------------- CAPITAL STOCK ISSUED Ps. 2,524,174 Ps. 9,246,242 Ps. 1,555,065 Ps. 8,016,216 ADDITIONAL PAID-IN CAPITAL 3,841,792 3,938,473 191,412 228,697 LEGAL RESERVE 802,231 1,472,899 622,401 1,290,143 RESERVE FOR REPURCHASE OF SHARES 2,255,655 5,370,967 2,451,331 5,573,984 UNAPPROPRIATED EARNINGS 3,542,282 11,273,239 5,276,914 12,932,833 CUMULATIVE GAIN ON ISSUANCE OF SHARES OF ASSOCIATES 3,573,907 3,784,979 586,351 750,752 CUMULATIVE EFFECT OF DEFERRED TAXES (2,197,681) (2,792,329) (2,197,681) (2,792,329) ACUMULATED OTHER COMPREHENSIVE LOSS -- (2,626,911) -- (3,234,932) NET INCOME FOR THE SIX MONTHS -- 933,883 1,515,190 1,581,345 SHARES REPURCHASED (5,126,948) (6,098,399) (1,609,978) (2,311,071) -------------- -------------- TOTAL MAJORITY STOCKHOLDERS' EQUITY Ps. 24,503,043 Ps. 22,035,638 ============== ============== IN DECEMBER 2003, THE COMPANY INCREASED ITS CAPITAL STOCK IN THE AMOUNT OF PS.4,088,840 BY ISSUING 430,307,554 SERIES "A" SHARES AS A RESULT OF THIS CAPITAL INCREASE, THE COMPANY RECOGNIZED AN ADITIONAL PAID-IN CAPITAL OF PS.3,709,776. THESE SHARES WERE ACQUIRED IN DECEMBER 31, 2003 BY A COMPANY'S LONG-TERM RETENTION PLAN FOR PARTICIPANT EMPLOYEES. ON APRIL 16, 2004, THE SHAREHOLDERS OF THE COMPANY APPROVED A DIVIDEND PAYMENT IN THE AMOUNT OF PS.3,850,000 (NOMINAL), WHICH WAS MADE ON MAY 21 2004, AS FOLLOWS: A DIVIDEND OF PS.1.21982800845 PER CPO, AND A DIVIDEND OF PS.0.40660933615 PER SERIES "A" SHARE (NOT IN THE FORM OF A CPO). ON APRIL 16, 2004, THE SHAREHOLDERS OF THE COMPANY APROVED A RESTRUCTURING OF THE COMPANY'S CAPITAL STOCK ("RECAPITALIZATION"), WHICH COMPRISES THE FOLLOWING: (I) A STOCK SPLIT IN WHICH EACH OUTSTANDING SHARE WILL BE DIVIDED INTO 25 SHARES OF THE SAME CLASS; (II) THE CREATION OF A NEW CLASS OF COMMON OR ORDINARY SHARES, THE SERIES "B" SHARES; (III) A STOCK DIVIDEND IN THE AMOUNT OF PS.906,114 (NOMINAL), IN WHICH THE COMPANY WILL DISTRIBUTE, TO HOLDERS OF OUTSTANDING SHARES, 14 NEW SHARES (OF VARIOUS CLASSES DEPENDING ON THE CLASS HELD) FOR EVERY 25 SHARES OUTSTANDING AFTER THE STOCK SPLIT; AND (IV) AN INCREASE IN THE NUMBER OF SHARES REPRESENTED BY EACH OUSTANDING CPO, FROM THREE SHARES TO 117 SHARES. THE RECAPITALIZATION WILL INCREASE THE NUMBER OF THE COMPANY'S SHARES BY A FACTOR OF 39 BUT WILL NOT AFFECT THE COMPANY'S TOTAL EQUITY OR DILUTE THE EQUITY INTEREST OF ANY SHAREHOLDER. THE FOLLOWING TABLE SUMMARIZES THE EFFECT OF THE STOCK SPLIT AND THE STOCK DIVIDEND ON A HOLDER OF ONE SHARE OF EACH CLASS OF THE COMPANY'S CAPITAL STOCK: 14 NEW SHARES BEFORE THE AFTER THE DISTRIBUTED PER 25 AFTER THE RECAPITALIZATION RECAPITALIZATION SHARES (POST-SPLIT) RECAPITALIZATION ----------------- ------------------ --------------------- ---------------- ONE "A" SHARE 25 "A" SHARES FOUR "B" SHARES 25 "A" SHARES FIVE "D" SHARES FOUR "B" SHARES FIVE "L" SHARES FIVE "D" SHARES FIVE "L" SHARES ONE "D" SHARE 25 "D" SHARES NINE "B" SHARES NINE "B" SHARES FIVE "D" SHARES 30 "D" SHARES ONE "L" SHARE 25 "L" SHARES NINE "B" SHARES NINE "B" SHARES FIVE "L" SHARES 30 "L" SHARES THE NUMBER OF SHARES DISCLOSED IN THESE NOTES DOES NOT REFLECT THE RECAPITALIZATION OF THE COMPANY'S CAPITAL STOCK, AS THE EFFECTIVE STE FOR EXCHANGING OLD AND NEW SHARES IS SCHEDULED TO BE MADE ON JULY 26, 2004. AS OF JUNE 30, 2004, THE NUMBER OF SHARES AUTHORIZED AND ISSUED, REPURCHASED AND OUTSTANDING IS PRESENTED AS FOLLOWS: AUTHORIZED SHARES AND ISSUED REPURCHASED OUTSTANDING ---------------------- ------------------ ---------------- ----------------- SERIES "A" 4,989,449,767 529,316,078 4,460,133,689 SERIES "L" 2,239,549,096 74,892,286 2,164,656,810 SERIES "D" 2,239,549,096 74,892,286 2,164,656,810 ------------------ ---------------- ----------------- 9,468,547,959 679,100,650 8,789,447,309 ================== ================ ================= THE NUMBER OF SHARES REPURCHASED INCLUDE 178,199,058 SHARES IN THE FORM OF 59,399,686 CPOS AND 24,116,238 SERIES "A" SHARES (NOT IN THE FORM OF CPOS) BENEFITIALLY OWNED BY A SUBSIDIARY OF THE COMPANY, AS WELL AS 430,307,554 SERIES "A" SHARES (NOT IN THE FORM OF CPOS) WHICH WERE ACQUIRED BY A COMPANY'S TRUST. THE NET COST OF THE 679,100,650 SHARES REPURCHASED AND HELD BY THE GROUP AS OF JUNE 30, 2004, IS PRESENTED AS A CHARGE TO STOCKHOLDERS' EQUITY, AS FOLLOWS: REPURCHASE PROGRAM PS. 372,032 OWNED BY A COMPANY'S SUBSIDIARY 3,713,505 ACQUIRED BY A COMPANY'S TRUST 1,837,814 ADVANCE FOR ACQUISITION OF SHARES 175,048 ---------------- PS. 6,098,399 ================ IN CONNECTION WITH THE COMPANY'S PROGRAM FOR REPURCHASE OF SHARES, IN THE FIRST HALF OF 2004, THE COMPANY REPURCHASED 46,489,800 SHARES IN THE FORM OF 15,496,600 CPOS IN THE AMOUNT OF PS.372,105 (PS.371,831 NOMINAL), AND RESOLD 12,000 SHARES IN THE FORM OF 4,000 CPOS IN THE AMOUNT OF PS.97. IN THE THIRD QUARTER OF 2003 AND THE SECOND HALF OF 2004, THE GROUP SOLD 15,000,000 AND 127,584,804 SHARES, RESPECTIVELY, IN THE FORM OF 5,000,000 AND 42,528,268 CPOS, RESPECTIVELY, IN THE AMOUNT OF PS.72,865 (PS.70,128 NOMINAL) AND PS.572,353 (PS.571,121 NOMINAL), RESPECTIVELY, IN CONNECTION WITH THE COMPANY'S STOCK OPTION PLAN. 6. REPURCHASE OF SHARES: AS OF JUNE 30, 2004, 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.6,724,057. THIS RESERVE WAS USED IN 1999, 2000 AND 2003 IN THE AMOUNT OF PS.276,471, PS.618,019 AND PS.458,600, 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 SIX MONTHS ENDED JUNE 30, CONSISTED OF: 2004 2003 --------------- -------------- INTEREST EXPENSE (1) Ps. 768,703 Ps. 679,300 INTEREST INCOME (320,107) (370,358) FOREIGN EXCHANGE LOSS (GAIN), NET (2) (64,167) 7,973 LOSS FROM MONETARY POSITION (3) 133,721 52,073 --------------- -------------- Ps. 518,150 Ps. 368,988 =============== ============== (1) INCLUDES RESTATEMENT OF UDIS OF PS.34,236 AND PS.52,262 NET IN 2004 AND 2003, RESPECTIVELY. (2) NET OF THE GAIN OF PS.185,960 IN 2004 AND OF THE LOSS OF PS.12,598 IN 2003 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 NPCI 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 2004 AND 2003 OF PS.61,296 AND PS.52,625, RESPECTIVELY, ARISING FROM TEMPORARY DEFFERENCES OF NON-MONETARY ITEMS IN CALCULATING DEFERRED INCOME TAX. 8. DEFERRED TAXES: THE DEFERRED INCOME TAX LIABILITY AS OF JUNE 30, WAS DERIVED FROM: 2004 2003 -------------- ---------------- ASSETS: ACCRUED LIABILITIES Ps. 503,829 Ps. 612,653 GOODWILL 833,197 870,603 TAX LOSS CARRYFORWARDS 1,635,724 1,173,738 ALLOWANCE FOR DOUBTFUL ACCOUNTS 365,534 265,962 CUSTOMER ADVANCES 1,604,721 1,240,349 -------------- --------------- 4,943,005 4,163,305 -------------- --------------- LIABILITIES: INVENTORIES (1,434,505) (1,894,791) PROPERTY, PLANT AND EQUIPMENT - NET (1,124,446) (1,018,956) OTHER ITEMS (270,091) (399,709) INNOVA ( 1,579,306) (1,391,023) -------------- --------------- (4,408,348) (4,704,479) -------------- --------------- DEFERRED-INCOME TAXS OF MEXICAN COMPANIES 534,657 (541,174) DEFERRED TAX OF FOREIGN SUBSIDIARIES (370,984) (376,466) ASSETS TAX 1,855,702 1,632,687 VALUATION ALLOWANCE (2,888,991) (2,074,627) -------------- ---------------- DEFERRED INCOME TAX LIABILITY (869,616) (1,359,580) EFFECT ON CHANGE OF INCOME TAX RATES 88,779 280,722 -------------- ---------------- DEFERRED TAX LIABILITY OF CONTINUING OPERATIONS Ps. (780,837) Ps. (1,078,858) ============== ================ 9. EXTRAORDINARY ITEMS: NO EXTRAORDINARY ITEMS, AS DEFINED BY MEXICAN GAAP BULLETIN A-7 "COMPARABILITY", WERE RECOGNIZED IN INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2004 AND 2003. 10. DISCONTINUED OPERATIONS: NO DISCONTINUED OPERATIONS, AS DEFINED BY MEXICAN GAAP BULLETIN A-7 "COMPARABILITY", WERE RECOGNIZED IN INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2004 AND 2003. 11. CUMULATIVE EFFECT OF ACCOUNTING CHANGES: EFFECTIVE APRIL 1, 2004, THE GROUP ADOPTED THE GUIDELINES OF FIN 46, "CONSOLIDATION OF VARIABLE INTEREST ENTITIES," AS PERMITTED BY MEXICAN GAAP BULLETIN A-8, "SUPPLEMENTARY APPLICATION OF INTERNATIONAL ACCOUNTING STANDARDS." FIN 46, WHICH BECAME EFFECTIVE IN 2004, ADDRESSES CONSOLIDATION BY BUSINESS ENTERPRISES OF VARIABLE INTEREST ENTITIES, OR "VIES". UNDER PREVIOUS GUIDANCE, A COMPANY GENERALLY INCLUDED ANOTHER ENTITY IN ITS CONSOLIDATED FINANCIAL STATEMENTS ONLY IF IT CONTROLLED THE ENTITY THROUGH VOTING INTERESTS. FIN 46 REQUIRES A VARIABLE INTEREST ENTITY TO BE CONSOLIDATED BY A COMPANY IF THAT COMPANY IS THE "PRIMARY BENEFICIARY" OF THE ENTITY. THE PRIMARY BENEFICIARY IS SUBJECT TO A MAJORITY OF THE RISK OF LOSS FROM THE VIES ACTIVITIES, OR IS ENTITLED TO RECEIVE A MAJORITY OF THE VIES RESIDUAL RETURN, OR BOTH. THE GROUP IDENTIFIED INNOVA AS A VARIABLE INTEREST ENTITY, AND THE GROUP AS THE PRIMARY BENEFICIARY OF THE INVESTMENT IN INNOVA, UNDER THE SCOPE OF FIN 46, AND THEREFORE, BEGINNING APRIL 1, 2004, THE GROUP BEGAN TO INCLUDE IN ITS CONSOLIDATED FINANCIAL STATEMENTS THE ASSETS, LIABILITIES AND RESULTS OF OPERATIONS OF INNOVA. BEFORE ADOPTING FIN 46, THE GROUP ACCOUNTED FOR ITS INVESTMENT IN INNOVA BY APPLYING THE EQUITY METHOD, AND RECOGNIZED EQUITY IN LOSSES IN EXCESS OF ITS INVESTMENT UP TO THE AMOUNT OF THE GUARANTEES MADE BY THE GROUP IN CONNECTION WITH CERTAIN CAPITAL LEASE OBLIGATIONS OF INNOVA. AS A RESULT OF THIS ACCOUNTING CHANGE, THE GROUP RECOGNIZED AT APRIL 1, 2004, A CONSOLIDATED CUMULATIVE LOSS EFFECT OF PS.991,953, NET OF INCOME TAX IN THE AMOUNT OF PS.293,987, IN ITS CONSOLIDATED STATEMENT OF INCOME FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2004, IN CONNECTION WITH INNOVA'S ACCUMULATED LOSSES NOT RECOGNIZED BY THE GROUP IN 2001, 2002, 2003 AND THE FIRST QUARTER OF 2004. NO CUMULATIVE EFFECT OF ACCOUNTING CHANGE WAS RECOGNIZED IN INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2003. 12. QUARTERLY NET RESULTS (HISTORICAL AND RESTATED): THE QUARTERLY NET RESULTS FOR THE FOUR QUARTERS ENDED JUNE 30, 2004, ARE AS FOLLOWS: HISTORICAL NET RESULT (1) RESTATED NET RESULT -------------------------------- --------------------------------- INDEX AT END QUARTER ACCUMULATED QUARTER OF PERIOD ACCUMULATED QUARTER -------------------- ----------------- -------------- -------------- --------------- --------------- 3 / 03 Ps. 2,217,022 Ps. 686,024 105.275 Ps. 2,289,929 Ps. 708,583 4 / 03 3,596,603 1,343,339 106.996 3,655,123 1,365,195 1 / 04 472,041 472,041 108.672 472,323 472,323 2 / 04 933,883 461,560 108.737 933,883 461,560(1) AS REPORTED IN EACH QUARTER. 13. INFORMATION BY SEGMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2004 AND 2003, WERE AS FOLLOWS: TOTAL INTERSEGMENT CONSOLIDATED OPERATING REVENUES REVENUES REVENUES INCOME (LOSS) ------------- -------------- -------------- --------------- 2004: TELEVISION BROADCASTING Ps. 7,186,502 Ps. 105,369 7,081,133 2,622,440 PROGRAMING FOR PAY TELEVISION 362,046 73,192 288,854 111,122 PROGRAMING LICENSING 937,759 - 937,759 360,353 PUBLISHING 901,801 189 901,612 148,345 PUBLISHING DISTRIBUTION 917,776 3,964 913,812 (16,243) SKY MEXICO 1,174,200 8,477 1,165,723 236,781 CABLE TELEVISION 544,309 1,680 542,629 92,216 RADIO 120,514 23,837 96,677 (2,946) OTHER BUSINESSES 818,202 55,924 762,278 (93,279) ELIMINATIONS AND CORPORATE EXPENSES (272,632) (272,632) - (76,500) -------------- -------------- -------------- --------------- CONSOLIDATED TOTAL Ps. 12,690,477 Ps. - Ps. 12,690,477 Ps. 3,382,289 ============== ============== ============== =============== 2003: TELEVISION BROADCASTING Ps. 6,952,947 Ps. 26,380 Ps. 6,926,567 Ps. 2,363,413 PROGRAMING FOR PAY TELEVISION 338,021 28,882 309,139 47,194 PROGRAMING LICENSING 867,127 - 867,127 300,471 PUBLISHING 812,754 863 811,891 135,295 PUBLISHING DISTRIBUTION 767,619 3,223 764,396 (3,615) SKY MEXICO - - - - CABLE TELEVISION 500,616 3,011 497,605 58,470 RADIO 123,001 23,959 99,042 1,419 OTHER BUSINESSES 776,443 55,929 720,514 (161,249) ELIMINATIONS AND CORPORATE EXPENSES (142,247) (142,247) - (79,181) -------------- -------------- -------------- --------------- CONSOLIDATED TOTAL Ps. 10,996,281 Ps. - Ps. 10,996,281 Ps. 2,662,217 ============== ============== ============== =============== 14. REFINANCING: IN MAY 2004, THE COMPANY ENTERED INTO A LONG-TERM CREDIT AGREEMENT WITH A MEXICAN BANK IN THE AGGREGATE PRINCIPAL AMOUNT OF PS.1,162.5 MILLION, WHICH MATURES IN 2009. THE ANNUAL INTEREST RATE OF THIS INDEBTEDNESS EQUALS 9.70% AND IS PAYABLE ON A MONTHLY BASIS. THE PROCEEDS OF THIS LOAN WERE USED BY THE COMPANY TO PREPAY ALL OF THE OUTSTANDING AMOUNTS OF THE U.S.$100 MILLION SYNDICATED LONG-TERM LOAN, WHICH ORIGINALLY MATURED IN 2005 AND 2006. 15. DIVESTITURE OF MINORITY INTEREST INVESTMENT IN APRIL 2004, THE COMPANY SOLD ITS 30% MINORITY INTEREST IN GRUPO EUROPRODUCCIONES, S.A., A TELEVISION PROGRAMMING PRODUCER IN SPAIN, IN THE AGGREGATE AMOUNT OF APPROXIMATELY 7,505 MILLION EUROS (PS.105,767) IN CASH. AS A RESULT OF THIS DISPOSAL, THE COMPANY RECOGNIZED A NET LOSS OF APPROXIMATELY 8,030 MILLION EUROS (PS.113,159) AS OTHER EXPENSE IN ITS CONSOLIDATED STATEMENT OF INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2004. - - - - - - - - - MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004 GRUPO TELEVISA, S.A. RELATION OF SHARES INVESTMENTS ANNEX 3 CONSOLIDATED FINAL PRINTING --------------------------------------------------------------------------------------------------------------------------------- % TOTAL AMOUNT OWNERSHIP (THOUSANDS OF PESOS) NUMBER -------------------------------- COMPANY NAME (1) MAIN ACTIVITIES OF SHARES (2) ACQUISITION PRESENT COST VALUE (3) --------------------------------------------------------------------------------------------------------------------------------- SUBSIDIARIES 1 CORPORATIVO VASCO DE QUIROGA, PROMOTION AND 19,509,544 100.00 1,836,819 1,779,891 S.A. DE C.V. DEVELOPMENT OF COMPANIES 2 CVQ ESPECTACULOS, S.A. DE C.V. PROMOTION AND 10,660,871 100.00 1,367,744 574,561 DEVELOPMENT OF COMPANIES 3 DTH EUROPA, S.A. PROMOTION AND 465,711 79.95 264,460 (527,240) DEVELOPMENT OF COMPANIES 4 EDITORA FACTUM, S.A. DE C.V. PROMOTION AND 527,908,167 100.00 1,765,630 1,583,996 DEVELOPMENT OF COMPANIES 5 EDITORIAL TELEVISA, S.A. DE C.V. PROMOTION AND 1,037,498 100.00 823,582 1,583,085 DEVELOPMENT OF COMPANIES 6 FACTUM MAS, S.A. DE C.V. PROMOTION AND 5,271,100,701 100.00 4,585,127 (385,886) DEVELOPMENT OF COMPANIES 7 GRUPO DISTRIBUIDORAS INTERMEX, DISTRIBUTION OF BOOKS 349,470,905 100.00 822,778 575,606 S.A. DE C.V. AND MAGAZINES 8 GRUPO RADIOPOLIS, S.A. DE C.V. PROMOTION AND 418,881,301 100.00 342,274 8,155,256 DEVELOPMENT OF COMPANIES 9 PROMO-INDUSTRIAS PROMOTION AND 515,523 100.00 102 60,928 METROPOLITANAS, S.A. DE C.V. DEVELOPMENT OF COMPANIES 10 SISTEMA RADIOPOLIS, S.A. DE C.V. COMMERCIALIZATION OF 76,070,313 50.00 764,739 200,744 RADIO PROGRAMMING 11 TELEPARABOLAS, S.L. MAINTENANCE OF 1,500 100.00 750 809 PARABOLIC DISHES 12 TELESISTEMA MEXICANO, S.A. DE C.V. COMMERCIALIZATION OF 160,721,725 100.00 11,901,180 20,697,633 TELEVISION 13 TELEVISA ARGENTINA, S.A. COMMERCIAL OPERATION 6,920,920 100.00 115,371 45,781 OF TELEVISION 15 TELEVISION INDEPENDIENTE DE PROMOTION AND 16,997,306 99.96 1,265,724 4,907,569 MEXICO, S.A. DE C.V. DEVELOPMENT OF COMPANIES 16 CAPITALIZED INTEGRAL COST OF 1 210,971 FINANCING, 1994 17 CAPITALIZED INTEGRAL COST OF 1 389,386 FINANCING, 1995 18 CAPITALIZED INTEGRAL COST OF 1 26,957 FINANCING, 1996 19 CAPITALIZED INTEGRAL COST OF 1 21,676 FINANCING, 1998 --------------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT IN SUBSIDIARIES 25,856,280 39,901,723 --------------------------------------------------------------------------------------------------------------------------------- ASSOCIATEDS 1 ARGOS COMUNICACION, S.A. DE C.V. OPERATION AND/OR 33,000,000 15.30 137,000 21,288 BROADCASTING OF T.V. 2 DIBUJOS ANIMADOS MEXICANOS PRODUCTION OF 1,735,560 49.00 4,384 747 DIAMEX, S.A. DE C.V. ANIMATED CARTOONS 3 DTH TECHCO PARTNERS SERVICES FOR SATELLITE 1 30.00 117,900 159,758 PAY TELEVISION 4 EDITORIAL CLIO, LIBROS Y VIDEOS, PUBLISHING AND PRINTING 2,627,050 30.00 26,270 14,021 S.A. DE C.V. OF BOOKS AND MAGAZINES. 5 ENDEMOL MEXICO, S.A. DE C.V. COMMERCIALIZATION OF 1,635,000 50.00 1,635 17,411 TELEVISION PROGRAMMING 6 EN VIVO ESPECTACULOS, S. DE R.L. LIVE ENTERTAINMENT IN 2 100.00 25 (4,466) DE C.V. MEXICO 7 MAS FONDOS, S.A. DE C.V. MUTUAL FUND DISTRIBUTION 87,659 46.00 87,659 58,881 COMPANY 8 OCESA ENTRETENIMIENTO, S.A. DE LIVE ENTERTAINMENT IN 14,100,000 40.00 1,095,581 485,853 C.V. MEXICO 9 SKY LATIN AMERICA PARTNERS ADMINISTRATIVE SERV. 1 30.00 1,974 11,117 FOR THE DTH VENTURES 10 TELEVISORA DEL YAQUI, S.A. DE C.V. OPERATION AND/OR 4,124,986 15.00 412 6,563 BROADCASTING OF T.V. 11 TUTV, LLC COMMERCIALIZATION OF 1 50.00 25,752 20,619 TELEVISION PROGRAMMING 12 UNIVISION COMMUNICATIONS, INC. BROADCASTING OF T.V. 30,187,534 9.36 5,602,976 5,761,842 SPANISH PROGRAMS --------------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT IN ASSOCIATEDS 7,101,568 6,553,634 --------------------------------------------------------------------------------------------------------------------------------- OTHER PERMANENT INVESTMENTS 324,813 --------------------------------------------------------------------------------------------------------------------------------- TOTAL 46,780,170 --------------------------------------------------------------------------------------------------------------------------------- MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA ANNEX 5 QUARTER: 2 YEAR: 2004 GRUPO TELEVISA, S.A. CREDIT BREAK DOWN (Thousands of Pesos) ----------------------------------------------------------------------------------------------------------------------------------- Denominated Amortization of Credits in ----------------------------- In Pesos Time Interval -------------------------------------------------------------- Credit Type / Institution Amortization Rate of Until 1 More Than Current Until 1 Date Interest Year 1 Year Year Year ----------------------------------------------------------------------------------------------------------------------------------- BANKS ----------------------------------------------------------------------------------------------------------------------------------- OTHER FINANCIAL ENTITIES BANAMEX, S.A. 5/21/2009 9.70 1,162,460 BANAMEX, S.A. 5/1/2008 8.93 40,000 720,000 BANCA SERFIN, S.A. 5/15/2006 8.07 64,000 64,000 BNP PARIBAS 1/20/2009 2.29 BANAMEX, S.A. 7/24/2004 7.69 38,156 BANK OF AMERICA 3/31/2010 2.61 SUNTRUST BANK MIAMI, NATIONAL 4/1/2008 4.53 BANCO DE BILBAO VIZCAYA, S.A. 1/30/2006 5.86 LEASING DE COLOMBIA 9/23/2006 13.14 LEASING DE OCCIDENTE 3/19/2005 13.87 LEASING DE OCCIDENTE 4/29/2007 17.62 SANTANDER CENTRAL HISPANO LEASING, S.A. 1/24/2006 14.74 LEASING DEL VALLE 1/14/2005 14.40 ----------------------------------------------------------------------------------------------------------------------------------- TOTAL BANKS 142,156 1,946,460 - - ----------------------------------------------------------------------------------------------------------------------------------- STOCK EXCHANGE PRIVATE PLACEMENTS ----------------------------------------------------------------------------------------------------------------------------------- UNSECURED DEBT ---------------------------------------- HOLDERS 5/13/2006 12.49 HOLDERS 8/8/2005 9.07 HOLDERS 9/13/2011 8.41 HOLDERS 3/11/2032 8.94 HOLDERS 4/1/2007 13.54 HOLDERS 9/19/2013 9.86 UDI DENOMINATED-NOTES 4/13/2007 8.15 3,705,056 ----------------------------------------------------------------------------------------------------------------------------------- TOTAL STOCK EXCHANGE - 3,705,056 - - ----------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------- SUPPLIERS ----------------------------------------------------------------------------------------------------------------------------------- VARIOUS 666,778 1,157,450 ----------------------------------------------------------------------------------------------------------------------------------- TOTAL SUPPLIERS 666,778 - - 1,157,450 ----------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------- OTHER CURRENT LIABILITIES AND OTHER CREDITS ----------------------------------------------------------------------------------------------------------------------------------- VARIOUS 1,191,683 58,382 730,094 ----------------------------------------------------------------------------------------------------------------------------------- TOTAL OTHER CURRENT LIABILITIES AND OTHER CREDITS 1,191,683 58,382 730,094 ----------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------- 2,000,617 5,709,898 - 1,887,544 ----------------------------------------------------------------------------------------------------------------------------------- NOTES THE BANCO NACIONAL DE MEXICO LOAN WAS REFINACED IN JULY 2000, AND THE MATURITY OF SUCH LOAN AND INTEREST PAYABLE WERE CHANGED AS RE- FLECTED IN THIS SCHEDULE. THE EXCHANGE RATES FOR THE CREDITS DENOMINATED IN FOREIGN CURRENCY WERE AS FOLLOWS : $ 11.5370 PESOS PER U.S. DOLLAR 0.0042 PESOS PER COLOMBIAN PESO 14.0926 PESOS PER EURO [TABLE CONT'D] --------------------------------------------------------------------------------------------------------------------------------- Foreign Currency With National Entities (Thousands of $) Amortization of Credits in Foreign Currency With Foreign Entities --------------------------------------------------------------------------------------------------------------------------------- Time Interval --------------------------------------------------------------------------------------------------------------------------------- Until 2 Until 3 Until 4 Until 5 Current Until 1 Until 2 Until 3 Until 4 Year Year Year Year Year Year Year Year Year --------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------- 5,355 5,354 10,708 10,708 7,321 289 289 578 578 578 216 4,615 4,615 4,615 4,398 2,072 1,355 1,295 255 222 417 81 289 289 86 85 172 142 12 11 65 8 7 --------------------------------------------------------------------------------------------------------------------------------- - - - - 8,582 12,227 17,850 16,124 12,297 --------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------- 61,642 2,307,400 1,015,256 --------------------------------------------------------------------------------------------------------------------------------- - - - - - - 2,369,042 1,015,256 0 --------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------- - - - - - 359,966 - - - --------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------- 519,956 33,578 119,580 170,980 86,917 97,455 --------------------------------------------------------------------------------------------------------------------------------- 519,956 33,578 119,580 170,980 86,917 97,455 --------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------- 519,956 - - - 42,160 491,773 2,557,872 1,118,297 109,752 --------------------------------------------------------------------------------------------------------------------------------- [TABLE CONT'D] CONSOLIDATED FINAL PRINTING ----------------------- (Thousands of $) ----------------------- ----------------------- Until 5 Year ----------------------- ----------------------- 4,105 29,987 ----------------------- 34,092 ----------------------- ------------------------ 3,461,100 3,461,100 3,461,100 ------------------------ 10,383,300 ------------------------ ------------------------ ------------------------ ------------------------ - ------------------------ ------------------------ ------------------------ 1,146,474 ------------------------ 1,146,474 ------------------------ ------------------------ 11,563,866 ------------------------ MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004 GRUPO TELEVISA, S.A. MONETARY FOREIGN CURRENCY POSITION (Thousands of Pesos) ANNEX 6 CONSOLIDATED Final Printing ------------------------------------------------------------------------------------------------------------------------------- DOLLARS (1) OTHER CURRENCIES --------------------------------------------------------------------- TOTAL TRADE BALANCE THOUSANDS THOUSANDS THOUSANDS THOUSANDS THOUSANDS OF DOLLARS OF PESOS OF DOLLARS OF PESOS OF PESOS ---------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS 628,316 7,248,882 37,755 435,579 7,684,461 LIABILITIES POSITION 1,564,889 18,054,124 25,347 292,428 18,346,552 SHORT-TERM LIABILITIES POSITION 190,700 2,200,106 23,984 276,703 2,476,809 LONG-TERM LIABILITIES POSITION 1,374,189 15,854,018 1,363 15,725 15,869,743 ---------------------------------------------------------------------------------------------------------------------------- NET BALANCE (936,573) (10,805,242) 12,408 143,151 (10,662,091) ---------------------------------------------------------------------------------------------------------------------------- NOTES THE EXCHANGE RATES USED FOR TRANSLATION WERE AS FOLLOWS : $ 11.5370 PESOS PER U.S. DOLLAR 14.0926 PESOS PER EURO 3.8976 PESOS PER ARGENTINEAN PESO 0.0179 PESOS PER CHILEAN PESO 0.0042 PESOS PER COLOMBIAN PESO 3.3219 PESOS PER PERUVIAN NUEVO SOL 20.9851 PESOS PER POUNDS STERLING 11.5370 PESOS PER ECUADORIAN SUCRE THIS INFORMATION IS REPRESENTED ON A CONSOLIDATED BASIS AND INCLUDES, ACCORDINGLY, INFORMATION OF FOREIGN SUBSIDIARIES. MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004 GRUPO TELEVISA, S.A. INTEGRATION AND INCOME CALCULATION BY MONETARY POSITION (1) (Thousands of Pesos) ANNEX 7 CONSOLIDATED FINAL PRINTING ----------------------------------------------------------------------------------------------------------------------------- (ASSET) LIABILITIES MONTHLY MONTH MONETARY MONETARY MONETARY MONTHLY PROFIT ASSETS LIABILITIES POSITION INFLATION AND (LOSS) ----------------------------------------------------------------------------------------------------------------------------- JANUARY 28,435,606 22,176,571 (6,259,035) 0.01 (38,900) FEBRUARY 27,713,141 20,084,504 (7,628,637) 0.01 (45,627) MARCH 26,256,111 21,431,109 (4,825,002) 0.00 (16,347) APRIL 28,415,500 34,291,191 5,875,691 0.00 8,866 MAY 28,545,301 37,295,647 8,750,346 0.00 (21,946) JUNE 22,597,252 32,956,030 10,358,778 0.00 15,549 ACTUALIZATION: - (612) CAPITALIZATION: - - FOREIGN CORP.: - 24,034 OTHER - (58,738) ----------------------------------------------------------------------------------------------------------------------------- TOTAL (133,721) ----------------------------------------------------------------------------------------------------------------------------- NOTES THE AMOUNT REFLECTED IN "OTHER" INCLUDES A LOSS FROM MONETARY 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 SIFIC / ICS STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004 GRUPO TELEVISA, S.A. CONVENANTS ON BONDS AND MEDIUM TERM NOTES LISTED IN STOCK MARKET ANNEX 8 CONSOLIDATED Final Printing ------------------------------------------------------------------------------- FINANCIAL LIMITED BASED IN ISSUED DEED AND/OR TITLE ------------------------------------------------------------------------------- THE AGREEMENTS OF THE U.S.$200 MILLION, U.S.$300 MILLION AND U.S.$300 MILLION SENIOR NOTES ISSUED BY GRUPO TELEVISA, S.A. WITH MATURITY IN 2005, 2011 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 AGREEMENTS OF THE U.S.$88 MILLION SENIOR NOTES AND THE U.S.$300 MILLION SENIOR NOTES ISSUED BY INNOVA, S. DE R.L. DE C.V. ("INNOVA") WITH MATURITY IN 2007 AND 2013, RESPECTIVELY, CONTAIN 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 LIMITED ------------------------------------------------------------------------------- AT JUNE 30, 2004, 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. JULY 26, 2004 MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004 GRUPO TELEVISA, S.A. 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 AUDIO: 0 0 SISTEMA RADIOPOLIS, S.A. DE C 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. THE AZTECA STADIUM. 0 0 COMUNICACIONES MTEL, S.A. DE NATIONWIDE PAGING. 0 0 0 0 0 0 0 0 ---------------------------------------------------------------------------------------------------------------------------- NOTES MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004 GRUPO TELEVISA, S.A. MAIN RAW MATERIALS ANNEX 10 CONSOLIDATED FINAL PRINTING ----------------------------------------------------------------------------------------------------------------------------------- MAIN MAIN DOM. COST DOMESTIC SUPPLIERS FOREIGN SUPPLIERS SUBST. PRODUCTION (%) ----------------------------------------------------------------------------------------------------------------------------------- PROGRAMS AND FILMS ANIME CREATIVE CORPORATION 0.13 CIMA FILMS, S.A. DE C.V. 0.09 CINEMATOGRAFICA CALDERON, S.A. 0.11 CINEMATOGRAFICA RODRIGUEZ, S.A. 0.21 COMAREX, S.A. DE C.V. 0.10 CHURUBUSCO, S.A. 0.11 DIANA INTERNACIO NAL FILMS, S.A. 0.13 DISTRIBUIDORA RO MARI, S.A. DE C.V. 1.57 GUIAS, S.A. DE C.V. 0.43 GUSSI, S.A. DE C.V. 3.81 NUVISION, S.A. 0.57 ORO FILMS, S.A. DE C.V. 0.29 PELICULAS RODRI GUEZ, S.A. 0.72 PELICULAS Y VI DEOS INTERNACIO NALES, S.A. 0.11 PRODUCCIONES AGUILA,S.A. 0.27 PRODUCCIONES GONZALO ELVIRA 0.18 QUALITY FILMS, S.A. 0.03 SECINE, S.A. DE C.V. 0.17 TELE ALIANZA, S.A. DE C.V. 0.07 OTHER 0.34 PROGRAMS AND FILMS 4KIDS ENTERTAIN- MENT NO 0.22 ABC DISTRIBUTION COMPANY NO 0.59 ALFRED HABER DISTRIBUTION, INC. NO 0.48 ALLIANCE INTERNATIONAL NO 1.09 AMERICA PRO- DUCCIONES, S.A. NO 3.44 BETAFILM GMBH & CO. NO 0.60 BEVERLY HILLS ENTERTAINMENT NO 0.33 BKN INTERNA- CIONAL,INC. NO 0.24 BUENAVISTA INTERNATIONAL INC. NO 0.27 CANAL + DA NO 0.18 CARSEY WERNER DISTRIBUTION,INC. NO 0.25 CBS BROADCAST INTERNATIONAL NO 2.41 CDC UNITED NETWORK NO 0.08 CINAR FILMS, INC. NO 0.11 CONSTELLATION PICTURES, INC. NO 2.16 CROWN MEDIA DISTRIBUTION NO 0.10 DREAMWORKS NO 1.27 EVERGREEN ENTER TAINMENT GLOBAL NO 0.17 FIREWORKS INTER- NATIONAL NO 0.42 FREMANTLE INTER- NATIONAL DISTRI- BUTION, LTD. NO 0.26 GLOBAL PROGRA MMING NETWORK NO 0.41 GMD GLOBAL MEDIA DISTRIBU- TIONS NO 0.12 HARMONY GOLD USA, INC. NO 0.22 HEARTS ENTER TAINMENT, INC. NO 0.65 HIT ENTERTAIN- MENT PLC. NO 0.17 INDEPENDENT INTERNATIONAL T.V. INC. NO 2.48 ITSY BITSY ENTERTAINMENT NO 0.58 KUSHNER-LOCKE INTERNATIONAL NO 0.51 MATTEL EURO PA, BV. NO 0.14 MGM/UA TELECOM MUNICATIONS, INC. NO 3.06 MORGAN CREEK INTERNATIONAL NO 0.20 MOVIEMEX INTER- NATIONAL, INC. NO 0.03 MTV NETWORKS A DIVISION OF VIACOM INT. NO 1.14 MULTIMEDIA GROUP OF CANADA NO 0.39 NBC INTERNATIONAL NO 0.10 NELVANA INTER- NATIONAL NO 0.33 NEW LATIN IMAGE CORPORATION NO 0.05 NGTV INTERNATIO- NAL, LTD. NO 0.07 PARAMOUNT PICTURES , CORP. NO 4.64 POKEMON USA, INC. NO 0.20 PROTELE, INC. NO 4.29 RCN TELEVISION, S.A. NO 0.61 REPRESENTA- CIONES DE TELE- VISION NO 0.18 ROSE ENTERTAIN- MENT, INC. NO 0.75 RYSHER ENTER- TAINMENT, INC. NO 0.39 SALSA DISTRIBUTION NO 0.16 SALSA ENTER TAINMENT,INC. NO 1.07 SONY CORPORA- TION OF AMERICA NO 7.55 STUDIO CANAL IMAGE NO 0.31 TELEVISION FILM DISTRIBUTION NO 0.77 TEPUY INTER NATIONAL, INC. NO 0.38 TOEI ANIMATION CO., LTD NO 0.85 TOP ENTERTAINMENT PRODUCTS, INC. NO 0.11 TWENTIETH CEN- TURY FOX, INC. NO 6.33 UNIVERSAL STUDIOS INTERNATIONAL, B.V. NO 14.14 VENTURA FILM DISTRIBUTORS BV NO 1.01 WARNER BROS. INTERNATIONAL TELEVISION NO 13.74 WHILAND COMPANY NO 4.77 WORDLDIVISION ENTERPRISES, INC. NO 4.08 XYSTUS, LLC. NO 0.34 ZACH MOTION PICTURES,INC. NO 0.09 OTHER 0.98 COAXIAL CABLE RG NACIONAL DE CONDUCTORES, S.A. DE C.V. 0.04 SINGLE TELEGRIP CORPODISENO DE HERRAJES, S.A. 0.01 IDENTIFICATION PLAQUE RIVANDI, S.A. DE C.V. 0.10 COAXIAL CABLE RG MAYA 60 MOTOROLA, INC. 21.97 HILTI BOLT HILTI MEXICANA, S.A. DE C.V. NO 0.05 SWITCH CABLENETWORK MEXICO NO 0.02 SWITCH DISTRIBUIDORA Y COMERCIALIZADORA YES 0.24 TWO OUTLET DEVICE AC 20TVC CORPORATION YES 0.05 DECODIFICADOR MOTOROLA,INC. NO 46.93 COUCHE PAPER PAPELERA MOHGA BBA, S.A. 0.40 SUMINISTROS Y SERVICIOS BROM 0.72 PRESENTACIONES MREAL 0.03 PRODUCTORA COMERCIALIZA DORA Y EDITORA 0.91 COUCHE PAPER BOWARWE, INC. YES 0.27 STORAM ENSON YES 11.76 UPM KYMMENE SEAS YES 7.40 BULKLEY DUNKE YES 1.46 M REAL YES 1.26 MYLLLIKOSKI PAPEL YES 3.87 TEMBEC,INC. YES 0.46 BULKLEY DUNTON YES 14.42 FINNIPAP YES 8.02 WEB SOURCE YES 0.35 BOWATER,INC. YES 0.82 NORKE CANADA YES 0.60 PAPER AND IMPRESSION PRODUCTORA CO MERCIALIZADORA Y EDITORES DE LI BROS , S.A. DE C.V. 12.26 OFFSET MULTICOLOR 15.24 IMPRESOS MOINO 1.04 PROCESOS IND DE PAPEL, S.A. 2.02 GRAFICAS LA PRENSA, SA DE CV 0.19 LABORATORIO LITO COLOR, S.A. 0.04 SERVICIOS PROFE SIONALES, S.A. 0.14 PAPER AND IMPRESSION QUEBECOR CHILE, S.A. YES 2.65 QUEBECOR WORLD, INC. YES 0.10 GRUPO OP GRAFICAS S.A. YES 0.30 PRINTER COLOMBIA YES NA, S.A. YES 0.63 ST. IVES, INC. YES 7.40 BEST LITHO YES 0.39 EDITORES, S.A. 0.14 RR DONELLY 2.61 QUAD GRAPHICS YES 2.05 ----------------------------------------------------------------------------------------------------------------------------------- MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA GRUPO TELEVISA, S.A. SALES DISTRIBUTION BY PRODUCT ANNEX 11 DOMESTIC SALES ---------------------------------------------------------------------------------------------------------------------------------- TOTAL PRODUCTION NET SALES MARKET MAIN ------------------------------------------------------ --------------------------- MAIN PRODUCTS VOLUME AMOUNT VOLUME AMOUNT SHARE TRADEMARKS (%) ---------------------------------------------------------------------------------------------------------------------------------- INTERSEGMENT ELIMINATIONS (268,968) TELEVISION: PROGRAMMING HALF HOURS PRODUCED (DOMESTIC) 54 ADVERTISED TIME SOLD (HALF HOURS) 3 6,841,063 OTHER INCOME 56,954 PROGRAMMING FOR PAY TELEVISION: SALE OF SIGNALS 268,203 ADVERTISED TIME SOLD 42,130 PUBLISHING: MAGAZINE CIRCULATION 60,531 526,436 27,127 332,072 TV Y NOVELAS MAGAZINE, TELEGUIA MAGAZINE, VANIDADES MAGAZINE COSMOPOLITAN MAGAZINE BIOGRAPHICAL BOOKS SOCCERMANIA MAGAZINE TU MAGAZINE MEN'S HEALTH MAGAZINE CARAS MAGAZINE MUY INTERESANTE MAGAZINE PUBLISHING 243,915 PUBLISHING DISTRIBUTION: 7,579 225,669 MAGAZINE: "MAESTRA PREESCOLAR" "EL EGIPTO DE LOS FARAONES" "FABULA DISNEY" "REVISTA DEL CONSUMIDOR" "MAESTRA DE PRIMARIA" SKY MEXICO: DTH BROADCAST SATELLITE PAY TELEVISION 1,102,218 SKY PAY PER VIEW 59,078 CHANNEL COMMERCIALIZATION 12,904 CABLE TELEVISION: ANALOGIC AND DIGITAL SERVICE 513,191 SERVICE INSTALLATION 13,865 PAY PER VIEW 916 CHANNEL COMMERCIALIZATION 10,219 OTHER 6,118 RADIO: ADVERTISED TIME SOLD 120,514 OTHER BUSINESSES: DISTRIBUTION, RENTALS, AND SALE OF MOVIE RIGHTS 394,984 SPECIAL EVENTS AND SHOW PROMOTION 282,641 AMERICA NECAXA REAL SAN LUIS NATIONWIDE PAGING SERVICE 88,818 SKYTEL INTERNET SERVICES 37,856 ESMAS.COM ---------------------------------------------------------------------------------------------------------------------------------- TOTAL 526,436 10,384,360 ---------------------------------------------------------------------------------------------------------------------------------- [TABLE CONT'D] QUARTER: 2 YEAR: 2004 CONSOLIDATED FINAL PRINTING ----------------------------------------------------------- ----------------------------------------------------------- CUSTOMERS ----------------------------------------------------------- PROCTER & GAMBLE DE MEXICO, S.A. DE C.V. PROCTER & GAMBLE DE MEXICO, S.A. DE C.V. THE COCA-COLA EXPORT COMPANY. UNILEVER DE MEXICO, S.A. DE C.V. SABRITAS, S. DE R.L. DE C.V. BIMBO, S.A. DE C.V. PEPSI COLA MEXICANA, S.A. DE C.V. CERVECERIA MODELO, S.A. DE C.V. TELEFONOS DE MEXICO, S.A. DE C.V. DANONE DE MEXICO, S.A. DE C.V. NESTLE MEXICO, S.A. DE C.V. KIMBERLY CLARK DE MEXICO, S.A. DE C.V. PRODUCCIONES INFOVISION, S.A. DE C.V. KELLOGG COMPANY MEXICO, S. DE R.L. DE C.V. GENERAL MOTORS DE MEXICO, S. DE R.L. DE C.V. FRABEL, S.A. DE C.V. GENERAL PUBLIC (AUDIENCE) DEALERS COMMERCIAL CENTERS (MALLS) VARIOUS GENERAL PUBLIC GENERAL PUBLIC OPERADORA MEGACABLE, S.A. DE C.V. CERVECERIA MODELO, S.A. DE C.V. GRUPO WARNER LAMBERT MEXICO, S. DE R.L. DE C.V. TELEFONOS DE MEXICO, S.A. DE C.V. DAIMLERCHRYSLER DE MEXICO, S.A. DE C.V. FORD MOTOR COMPANY, S.A. DE C.V. BRISTOL MYERS SQUIBB DE MEXICO, S. DE R.L. DE C.V. KIMBERLY CLARK DE MEXICO, S.A. DE C.V. BANCO NACIONAL DE MEXICO, S.A. ARENA COMMUNICATIONS, S.A. DE C.V. BAYER DE MEXICO, S.A. DE C.V. SONY DE MEXICO, S.A. DE C.V. CERVECERIA MODELO, S.A. DE C.V. ARENA COMMUNICATIONS, S.A. DE C.V. VENTAS Y SERVICIOS AL CONSUMIDOR, S.A. DE C.V. PEGASO PCS, S.A. DE C.V. GIGANTE, S.A. DE C.V. NEXTEL DE MEXICO, S.A. DE C.V. COMERCIAL MEXICANA GENERAL MOTORS DE MEXICO, S. DE R.L. DE C.V. ALESTRA, S. DE R.L. DE C.V. DISTRIBUIDORA KROMA, S.A. DE C.V. CINEMAS DE LA REPUBLICA, S.A. DE C.V. CINEMEX, S.A. DE C.V. CINEMARK DE MEXICO, S.A. DE C.V. CINEPOLIS DEL PAIS, S.A. DE C.V. MULTIMEDIOS CINEMAS, S.A. DE C.V. GENERAL PUBLIC (AUDIENCE) GENERAL PUBLIC (AUDIENCE) FEDERACION MEXICANA DE FUTBOL, A.C. FERROCARRIL MEXICANO, S.A. DE C.V. BANCO NACIONAL DE MEXICO, S.A. HEWLETT PACKARD DE MEXICO, S. DE R.L. DE C.V. COMISION FEDERAL DE ELECTRICIDAD EDS DE MEXICO, S.A. DE C.V. AVANTEL, S.A. FERROSUR, S.A. DE C.V. SECRETARIA DE GOBERNACION SCHERING PLOUGH, S.A. DE C.V. BBVA BANCOMER, S.A. GRUPO NACIONAL PROVINCIAL, S.A. I.B.M. DE MEXICO, S.A. MEDIA CONTACTS, S.A. DE C.V. TELEFONOS DE MEXICO, S.A. DE C.V. MOTOROLA DE MEXICO, S.A. NESTLE MEXICO, S.A. DE C.V. ----------------------------------------------------------- ----------------------------------------------------------- MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA GRUPO TELEVISA, S.A. SALES DISTRIBUTION BY PRODUCT ANNEX 11A FOREIGN SALES ------------------------------------------------------------------------------------------------------------------------------------ TOTAL PRODUCTION NET SALES --------------------------------------------------------------------------------- MAIN PRODUCTS VOLUME AMOUNT VOLUME AMOUNT DESTINATION ------------------------------------------------------------------------------------------------------------------------------------ INTERSEGMENT ELIMINATIONS (3,664) TELEVISION BROADCASTING: ADVERTISING TIME SOLD 232,085 UNITED STATES OF AMERICA OTHER INCOME 56,400 UNITED STATES OF AMERICA PROGRAMMING FOR PAY TELEVISION: SALES OF SIGNALS 51,713 SPAIN ARGENTINA CHILE GUATEMALA COLOMBIA PROGRAM LICENSING: PROGRAMMING AND ROYALTIES 937,759 UNITED STATES OF AMERICA CENTRAL AMERICA CARIBBEAN EUROPE SOUTH AMERICA AFRICA ASIA PUBLISHING: MAGAZINE CIRCULATION, BOOKS AND ADVERTISING 12,565 198,079 GUATEMALA AND COSTA RICA UNITED STATES OF AMERICA PANAMA SOUTH AMERICA CENTRAL AMERICA PUBLISHING 127,735 PUBLISHING DISTRIBUTION: 7,082 692,107 PANAMA SOUTH AMERICA OTHER BUSINESSES: 13,903 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL 2,306,117 ------------------------------------------------------------------------------------------------------------------------------------ [TABLE CONT'D] QUARTER: 2 YEAR: 2004 CONSOLIDATED FINAL PRINTING ----------------------------------------------------- MAIN ------------------------------------------------ TRADEMARKS CUSTOMERS ----------------------------------------------------- RCN TELEVISION POWERCORP B.V. THOMSON BROADCASTING AND MEDIA SOLUTIONS MASTER CARD INTERNATIONAL GLOBAL MARKETING CHEIL COMMUNICATIONS, INC. REYNOLDS CONSUMER PRODUCTS TELEVISA MCCANN ERICKSON, INC. TELEVISA MINDSHARE TELEVISA DAILY AND ASSOCIATES TELEVISA SPOTPLUS TELEVISA CARAT, INC. TELEVISA HORIZON MEDIA, INC. TELEVISA GREY ADVERTISING, INC. INITIATIVE MEDIA, INC. GSD&M ADVERTISING TBWA CHIAT T.V. Y NOVELAS MAGAZINE GENERAL PUBLIC (AUDIENCE) BIOGRAPHICAL BOOKS DEALERS VANIDADES MAGAZINE COSMOPOLITAN MAGAZINE TU MAGAZINE BARNEY MAGAZINE GENERAL PUBLIC (AUDIENCE) FUTBOL TOTAL MAGAZINE GANCHILLO ARTISTICO DE CHOISY MAGAZINE PEOPLE EN ESPANOL MAGAZINE ----------------------------------------------------- ----------------------------------------------------- MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004 GRUPO TELEVISA, S.A. PROJECT, AMOUNT EXERCISED AND PROGRESS PERCENTAGE ANNEX 13 CONSOLIDATED FINAL PRINTING ------------------------------------------------------------------------------------------------ MAJOR INVESTMENT PROJECTS OF GRUPO TELEVISA, S.A. AND ITS SUBSIDIARIES AT JUNE 30, 2004, 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. $ 95.0 U.S. $ 27.8 29% INFORMATION TECHNOLOGY PROJECTS OF CABLE TELEVISION 13.5 10.0 74% TECHNICAL EQUIPMENT FOR T.V. STATIONS 13.3 7.9 59% INFORMATION TECHNOLOGY PROJECTS 11.3 3.3 29% MEXICAN PESOS DENOMINATED PROJECTS: INFORMATION TECHNOLOGY PROJECTS PS. 34.1 PS. 30.2 88% SOCCER FACILITIES AND IMPROVEMENTS 26.2 16.0 61% TECHNICAL EQUIPMENT FOR T.V. STATIONS 17.1 13.3 78% MEXICAN STOCK EXCHANGE STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004 GRUPO TELEVISA, S.A. 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 SENIOR NOTES DUE 2011 AND 2032 FOR AN AGGREGATE AMOUNT OF U.S.$600 MILLION (Ps.6,922,200). CONSEQUENTLY, BEGINNING MARCH 2002, 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 JUNE 30, 2003, HAVE BEEN RESTATED TO MEXICAN PESOS IN PURCHASING POWER AS OF JUNE 30, 2004, BY USING A RESTATEMENT FACTOR DERIVED FROM THE CHANGE IN THE NCPI, WHICH FOR 2004 WAS 1.0437. HAD THE ALTERNATIVE WEIGHTED AVERAGE FACTOR ALLOWED UNDER MEXICAN GAAP BEEN APPLIED TO RESTATE THE GROUP'S FINANCIAL STATEMENTS FOR JUNE 30, 2003, WHICH INCLUDED THE RESULTS OF MEXICAN AND NON-MEXICAN SUBSIDIARIES, THE RESTATEMENT FACTOR FOR JUNE 2003 WOULD HAVE BEEN 1.0579. MEXICAN STOCK EXCHANGE ("BMV") STOCK EXCHANGE COTLEVISA DATE: 7/27/2004 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: 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: PROSECRETARY 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: RESPONSIBLE OF INFORMATION TO 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 MEXICAN STOCK EXCHANGE ("BMV") STOCK EXCHANGE CODE: TLEVISA DATE: 7/27/2004 GRUPO TELEVISA, S.A. 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 : JULIO BARBA HURTADO NAME : JOSE ANTONIO BASTON PATINO NAME : ANA PATRICIA BOTIN O'SHEA 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 : 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 : JUAN SEBASTIAN MIJARES ORTEGA 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: August 3, 2004 By /s/ Jorge Lutteroth Echegoyen ------------------------------ Name: Jorge Lutteroth Echegoyen Title: Controller, Vice-President