2015 was a year of great challenges for our country and the sector in which we operate. The Telecommunications Reform has enabled greater and better competition. At Megacable, we have known how to take advantage of this opportunity and thus accelerate our growth and pro tability and consolidate ourselves as the best option in fixed telecommunications.

Throughout the year, and in order to maintain excellent levels of effciency in the operation, we invested more than Ps. 3,765 million in our network expansion and modernization process.

At Megacable, we know how to get ahead of our customers’ needs and requirements. Now we offer products that meet their needs at the right price and with a service quality that makes ours the offer that adds the greatest value in the market.

Our income and revenue generating units (RGUs) once again recorded double-digit growth. We are certain that this trend will continue and the Company will go on strengthening its operation in the different segments. Our Internet segment also maintained extraordinary growth rates. The offer of service, speed and price are the main characteristics that keep us as one of the main players in the market.

In terms of Pay-TV, “Next Generation Video” is our main innovation venture in cable television services. It offers television in multiple devices with set time space or places to watch your favorite programs. Megacable may offer its customers options other those existing, thus achieving greater interactivity and the satisfaction of particular needs.

In the telephony caption, we launched an app to make and receive call from your fixed line on your cell phone with the same infrastructure and services already enjoyed by customers. This results in savings on cell phone lines for local and long-distance calls, increased subscribers’ comfort and convenience by being able to use a single terminal for all their telephony.

In the business segment, we also maintained a firm and accelerated growth through MetroCarrier, MCM, Ho1a and PCTV. We see signi cant growth in the small- and medium-sized business (PYMES) and micro-business segments. The governmental bids wons in 2015 have enabled us to increase our revenue volumes and position ourselves as a leader in the sector. The business segment continues to grow signi cantly and currently represents 18% of our revenue.

It is also important to mention that the operating and financial results achieved during the year have brought with them a satisfactory share performance. At year-end 2015, the CPO closed at at a price of Ps. 64.19, a figure that represents annual performance of 12%.

Moreover, at Megacable, we are committed to society. By promoting and driving, through sponsorships, technological, cultural, sports and recreation activities in all the communities where we operate, the Company fosters outdoor exercise and family sharing in various pastimes such as cycling, marathons, baseball and football tournaments, to mention a few. We also maintain links with the Mexican Social Security Institute (IMSS) to run vaccination campaigns and health brigades that implement preventive actions for diabetes, obesity and other conditions.

Our commitment to the environment represents another of the areas covered by our corporate social responsibility. The assurance of the final disposal of obsolete equipment and the treatment of “electronic trash”. We have also adopted different practices that help to reduce carbon dioxide emissions, reductions in paper use, increased care of water and the correct disposal of waste, among other measures. Some of the initiatives we are currently implementing are: The Paperless process policy, the use of energy-saving light bulbs, the replacement of air conditioning equipment for more ef cient units and the renewal and maintenance of our fleet of vehicles to reduce its environmental impact.

Another priority social aspect for our organization is the improvement of the working conditions for our employee, thereby increasing productivity and thus enabling better-paid jobs that will result in lower turnover rates and a more productive workforce, generating a virtuous circle. In this regard, the Company is continually improving its training programs and implementing new technological tools to make the performance of their functions agile.

Also and with the purpose of improving and maintaining the quality of life for our employees, the Company offers benefits over and above the legal minimums. As part of its talent attraction process, the Company exercises non-discrimination policies in terms of gender, religion, socio-economic level or any other factor. Internally, the Company offers equal opportunities to employees for their professional development and growth.

Monthly, Megacable holds informative meetings with its operative staff in order to communicate projects, plans, operating results, performance and seniority awards, etc. Megacable constantly circulates its Business Values and Practices, such as: Honesty, Transparency Service Attitude, Collaboration and Respect.

Finally, I would like to comment that at Megacable we will continue to invest and innovate in new products of the highest quality, which is an element of the greatest value for our customers. We have the talent, financial strength and commitment to maintain our rhythm of investment and growth to continue being the best option in telecommunications for our customers and the market in general.

Once again I thank you the trust you have placed in Megacable. I am fully convinced that the future will continue to bring extraordinary results for all.

Sincerely,

Chairman of the Board of Directors

Secretary of the Board of Directors