Letter from the Chairman of the Board of Directors to the General Ordinary Stockholders’ Meeting

Dear Shareholders

2014 was a very difficult year for the economy in Mexico. The growth forecast of the Mexican economy was low. Despite these factors, the telecommunications industry showed an improvement, but even more important were the relevant results that we obtained as a Company: double-digit growth with good performance both in revenues and in revenue-generating units, which all of which point to position us as a key player in the sector.

To obtain satisfactory results, we had to overcome great challenges, the introduction of the structural reforms in telecommunications, which brought us an area of opportunity of great relevance for our business, since the strategy we had been implementing to support and reinforce our operations and service levels allowed us to take more advantage of these events that were happening.

The investment we made in the period, which amounted to US$ 173 million, was an important detonator that contributed to maintaining our network expansion and modernization process. At Megacable, we believe that the Internet will continue to generate an unprecedented trend in our country and will generate changes in how we all do business. Every day, consumers are adapting to the unlimited novelties and options presented to them by the market through first-world technological innovations that make their lives more practical. We have not been the exception.

We have made investments that have enabled us to remain at the technological cutting edge in the services we provide: video, voice and data, the latest-generation services such as video on demand, over-the-top services, the best high-definition, Internet speeds of up to 200 megabytes per second, the latest generation telephony and soon, the latest generation video services, faster Internet speeds and the integration of fixed telephone lines to mobile lines. Today, society has started to demand better content at a faster rate and quality programming based on particular tastes and preferences. It in this area where we see the future of television and Internet, because it is not about just “getting close” to people, but improving the quality and the type of approach we make.

To make this feature more promising for our Company and our customers, we have set the bases necessary to enable us to now have a competitive Internet connection and the sufficient structure to meet the needs generated by information technology.

In the business segment, we also maintained a firm and accelerated growth through MCM, Metrocarrier and Ho1a. Metrocarrier currently has 71,000 km of fiber optic and coaxial cables, a network capacity of 1.03 terabytes per second and three points of presence in the United States, all of which have enabled us to make significant increases in revenues and the number of clients compared to the number reported in 2013.

Our operating and financial results, as well as the positive outlook that predominates in our sector resulted in a very positive performance of our share, at December 31, 2014, the CPO closed at a price of Ps. 57.54, a figure that represents an advance of 30%, At Megacable, we continue to grow above the general level of the economy and the sector. That is why, with the help of the great talent that characterizes our personnel, we will continue to give our best to maintain the high standards of quality in our customer service, since it is thanks to them, we have got to where we are now.

All that remains for me to do it is to thank you for the trust of all our shareholders. We will continue to work very hard to achieve even better results in very near future.

Sincerely,

Francisco Javier R. Bours Castelo
Chairman of the Board of Directors

Manuel Urquijo Beltrań
Secretary of the Board of Directors