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LETTER TO OUR
READERS
CONTENT
JANUARY 2015
ISSUE 83
Juguetón Celebrates Its
20th Anniversary
with Millions of Smiles
Juguetón, the world’s largest toy drive, celebrated its 20th anniversary, once
again surpassing its goals and putting smiles on the faces of millions of children in Mexico, the United States, Guatemala, and El Salvador.
Just like every year for the last two decades, the team of collaborators makes
this endeavor possible, headed up by drive coordinator Jorge Garralda, collecting 16,372,842 new toys.
>>
Letter to Our
Readers
@lecharte
Over the years, the impact that companies have on the communities where they
operate has made them institutions that contribute positively to changing their
surroundings. Thanks to this increased importance, at Grupo Salinas, we are
proud of the social value generated not only by our operations, but also by the
different initiatives we have promoted benefitting thousands of people in Mexico
and the countries where we have a presence.
One of these initiatives is the Juguetón, the world’s largest toy drive, which celebrated the 20th anniversary of making the dreams of millions of low-income
children come true in Mexico, the United States, Guatemala, Honduras, and El
Salvador. This effort has filled us with satisfaction.
In business, we began the year with several moves to consolidate our positioning.
For instance, Alejandro Valenzuela came on board as CEO of Banco Azteca; his
proven experience will be a great contribution to strengthen and expand our
operations. Congratulations!
In addition, the sale of Grupo Iusacell to AT&T was finalized, an operation that
will translate into bigger telecommunications alternatives for customers. As part
of this agreement, Ricardo Salinas continues to own Totalplay, a triple-play, fiber
optic direct to the home service; he also retains Enlace, which offers Internet
services, landline phone service, and data service for networks to private companies and governments. Thanks to their modern technology, these services are
Latin America’s most advanced broadband Internet platform.
Construction also began on the Red Dorsal Nacional de Fibra Óptica de Perú
(Peru’s National Fiber Optic Network), a joint Peruvian government-Azteca Comunicaciones Perú project that seeks to energize the telecommunications sector
providing broader coverage and services through 13,400 kilometers of fiber optic
cable. It is another example of how we contribute to creating value for society.
Advance America is projecting strengthening and broadening the financial services it offers in the United States, providing more and better alternatives for its
customers. Meanwhile, Azteca finalized its season successfully and is simultaneously preparing new broadcasts with solid prospects.
I would like to thank you for your preference, and I invite you to share the highlights of our activities throughout this year.
Luis J. Echarte
2
Generating Shared
editorial
Social Value
Throughout the 20th century, the influence of companies on society grew,
to the degree that they became institutions that, besides creating wealth,
are now also an important means for
achieving social change.
Their activities have an impact not only
on customers, suppliers, or employees,
but also on the communities where
they do business. They are a powerful
force for change.
Given their growing social importance,
companies must try to find a balance
between public interest and profit-making. Profits are no longer the only indicator of efficiency.
3
Today, we can talk about mutual dependence among companies, society,
and government. The success of busi-
nesses and communities mutually reinforce each other in a virtuous circle.
This implies that business strategies
and public policies follow the principle
of shared social value.
This principle does not translate simply
into philanthropic activities, but into
business initiatives that generate value
both for companies and for society.
After more than 100 years of offering
products and services that contribute
to people’s well-being, at Grupo Salinas
we have consolidated our social commitment not only with the operation of
our companies, but also through more
than 40 initiatives that have a positive
impact on society in spheres like education, health, the environment, the
promotion of freedom, and leadership
with values, among others.
CONTENT
Grupo Elektra
announced the
appointment
of Alejandro
Valenzuela del
Río as CEO of
Banco Azteca
CEO...
Continue > P. 6
Continue >
Ricardo B. Salinas
launched Tanishka,
an initiative to put
Mexican women at
the center of social
change....
Continue > P. 9
Azteca Comunicaciones Perú began
construction last year of a fiber optic
network key to the country’s
telecommunications....
P. 13
Continue >
P. 12
Last year, Advance America
consolidated its mission
of becoming the main
option for users of financial
products and services...
Continue > P. 14
4
Grupo Elektra Announces New Banco Azteca CEO ...................................6
Sale of Grupo Iusacell to AT&T Finalized ....................................................... 7
2015 Will Be a Growth Year for Enlace ...........................................................8
Construction Begins on Peru’s Fiber Optic Network .................................9
“The Voice of the Subway” Wins First Season
of México Tiene Talento .................................................................................... 10
Exciting Finale of La Academia Kids .............................................................. 11
Casting Begins for La Isla ................................................................................. 12
Grupo Salinas Launches Initiative for Mexican Women .......................... 13
Advance America Consolidates Operations in 2014 ................................. 14
Names and Faces: Jorge Garralda ................................................................... 15
The Best of the Social Networks .................................................................... 16
The Best of the Blog ............................................................................................17
Contacts.................................................................................................................. 18
CONT.
Juguetón Celebrates Its 20th Anniversary With Millions of Smiles
On January 6, the official launch of the Juguetón toy
drive was held this year in Tuxtla Gutiérrez, Chiapas.
Children saw dreams come true thanks to unconditional support of Azteca audiences who participate in this
noble cause every year.
Hosts Regina
Murguía,
Alfonso de Anda,
and Mariana Torres
Jorge Garralda waves
the starting flag for
toy distribution
Ricardo Salinas handing
out gifts
Juguetón,
a gift,
1996 a smile
–
18,726 smiles
2000 – 450,000 smiles
2005 – 8’157,397 smiles
5
2015 - 16’372,842 smiles
Seasoned Bank Veteran Alejandro Valenzuela
Grupo Elektra
Announces
New Banco Azteca CEO
Grupo Elektra announced the appointment of Alejandro
Valenzuela del Río as CEO of Banco Azteca CEO to consolidate the offering of Mexico and Latin America’s top
financial services. He will also contribute to providing optimum customer service and generating more synergies
with the company’s commercial business.
Mr. Valenzuela has more than
20 years of experience in Mexico’s financial sector, both in public and private posts. He has
held positions of CEO of Grupo
Financiero Banorte and international relations director of
Banco de México. In addition,
he has held important posts in
the Ministry of Finance.
The new Banco Azteca CEO
expressed his excitement over
his appointment, as well as his
commitment to the well-being
of millions of families and the
growth of businesses in more
Mexican and Latin American
markets.
Banco Azteca CEO
alejandro valenzuela
6
Alejandro Valenzuela replaces
Luis Niño de Rivera, who will
become the vice-chairman of
Banco Azteca’s Board of Directors. Mr. Niño de Rivera has been fundamental in the
bank’s firm expansion in Mexico and Central and South
America, as well as in its solid results, its robust balance
sheet, and extensive growth prospects.
B o o s t t o T e l e c o m m u n i c at i o n s
Sale of
Grupo Iusacell
to AT&T
Finalized
Grupo Salinas announced that it concluded the
sale of Grupo Iusacell to AT&T for US$2.5 billion, including the company’s debt.
AT&T’s world class leadership and business
strategy will create superior alternatives in
telecommunications and will favorably impact
the well-being of families, the efficiency of organizations, and the country’s competitiveness
as a whole, said the group.
Under the agreement, Mr. Salinas maintains
ownership of Totalplay, a triple-play residential-service business, as well as Enlace’s corporate Internet, network, and landline services
—these two companies were previously subsidiaries of Grupo Iusacell.
Thanks to its fiber optic to home technology,
Totalplay boasts Latin America’s fastest Internet platform, with a velocity of up to 300
megabytes per second, the largest number of
high-definition channels available, an extensive
inventory of video on demand (VOD), and outstanding voice quality in its telephony services.
Enlace, for its part, offers Internet services
with velocities of up to 10 gigas per second;
landline services, and data networks to more
than 20,000 customers nationwide, ranging
from small companies to big corporations and
government. It also provides effective video
surveillance services through high-tech monitoring centers in several states of Mexico, with
solid growth perspectives.
7
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8
World-class Services
Construction Begins on
Peru’s Fiber Optic
Network
Alexandra Reyes, José
Gallardo Ku, Peruvian
President Ollanta
Humala, and Maciste Díaz
Azteca Comunicaciones Perú began construction last year of a fiber optic network key
to the country’s telecommunications. It will offer the public greater access to information and entertainment with world-class service.
The work began at a ceremony headed by Peruvian President Ollanta Humala Tasso;
Alexandra Reyes, president of Azteca Comunicaciones Perú; José Gallardo Ku, minister
of transport and communications; Maciste Díaz, president of the regional government
of Huancavelica; Raúl Pérez-Reyes, vice-minister of communications; and Gonzalo Ruiz
Díaz, chairman of the board of the Supervisory Body for Private Investment in Telecommunications (OSIPTEL).
The Red Dorsal Nacional de Fibra Óptica de Perú (National Fiber Optic Network) will
link up 22 regional capitals, 180 provincial capitals, and 1,516 districts through 13,400
kilometers of fiber optic cable, in six successive stages.
It will unite the departments of Amazonas, Ancash, Apurímac, Arequipa, Ayacucho,
Cajamarca, Callao, Cusco, Huancavelica, Huánuco, Ica, Junín, La Libertad, Lambayeque,
Lima, Loreto, Madre de Dios, Moquegua, Pasco, Piura, Puno, San Martín, Tacna, and
Ucayali.
9
The project will create impetus for telecommunications, allowing existing operators to
broaden coverage and services and improve competition in the sector through broadband access to high-speed internet.
Pablo López
“The Voice of
the Subway”
Wins First Season
of México tiene talento
Pablo López, winner of
México Tiene Talento
10
In an exciting finale, singer Pablo López
came out on top of the first season of El
Trece’s hit talent contest México Tiene Talento.
Pablo’s story hit home with audiences from
his first appearance on the program, when
they were told that he had been singing in
subway stations to make ends meet.
His rendering of hits like “When a Man
Loves a Woman,” “Old Time Rock ‘n
Roll,” and James Brown’s “I Feel Good”
put him over the top. Throughout
the season, his extraordinary voice
thrilled both judges and audiences, after it
had moved him from singing in Mexico City’s subway to the stages of Azteca.
In the semi-finals, contest judge Héctor
Martínez commented, “What I’m sure of is
that I won’t be seeing you in the subway
again, but in a theater somewhere.”
In addition to a cash prize, the winner gets
a contract with an important recording
company.
Karla Herrarte, the Winner
Exciting Finale of
“La
Academia
Kids”
In a thrill-packed finale, Guatemalan Karla
Herrarte became the winner of the second generation of
La Academia Kids, after close oneon-one battles against Sarah (second
place), Nicole and Alexis (third place), and
Sofía and Angélica (finalists).
Karla’s abilities were clear from the very first week,
as well as her great discipline in following her professors’ and the judges’ directions, advice that made her
improve and took her to the triumphant finish.
The night ended spectacularly with the participation
of judges Lola Cortés, Víctor García, and Alicia Villarreal, who, moved by the children’s interpretations,
took the stage to show why they’re established
stars.
Azteca is already preparing the third
season of La Academia Kids, to
promote youth musical talent.
11
Following
a successful
run, Azteca is
preparing
the third
season of
La Academia Kids.
Preparing the Fourth Season
Casting Begins for
La isla
After three successful seasons,
Azteca 7 is preparing the return of the
reality show that has had the biggest impact
on Mexican television, La Isla. For its fourth year, it
promises new and more exciting challenges that will put
contestants’ abilities and resilience to the test.
Alejandro Lukini will once again host the show, which has
been well-received by Mexican audiences, particularly on social
networks, where the flurry of participation they have sparked
has become a true phenomenon.
The call for members of the general public who want to
participate in this adventure is now open. Casting calls
are being held in cities throughout Mexico and on the
Internet. Details for participation can be found
on the Azteca 7 website,
www.azteca7.com/laislaelreality
12
Tanishka Is Born
Tanishka is a social program
for women developed by the
Sakal Media Group (SMG) in
Maharashtra, India. SMG is a
consortium of the region’s
most important independent
media. In a little over a year
and a half, Tanishka has
gathered 100,000 members
and more than 5,000 success
stories. Its mission is to
foster socio-economic
transformation through
women, giving them a place
of honor and respect,
empowering them, and
ensuring them social and
economic security.
Abhijit Pawar,
Elisa Salinas, and
Ricardo Salinas
Grupo Salinas
Launches
Initiative for
Mexican Women
Ricardo B. Salinas launched Tanishka, an initiative to put
Mexican women at the center of social change.
The announcement came at an event where the Grupo
Salinas chairman was accompanied by Elisa Salinas, the
director of Azteca Novelas; Francesca Salinas, president
of The Women’s Project; Abhijit Pawar, executive director
of Sakal Media Group (SMG); Bobby Nimbalkar, the director of the SMG Council for Strategic Leadership; Esteban
Moctezuma Barragán, executive president of Fundación
Azteca; and Fernando Espinosa de los Reyes, general director of Kybernus.
“At Grupo Salinas, where we have helped empower women for many years through our social initiatives, now we
are going to work jointly with the programs we already
have, like Movimiento Azteca, Asociación del Empresario
Azteca, and Micronegocio Azteca. I’m sure that if we empower Mexican women, we will have taken an enormous
step forward toward a more just, equitable, and prosperous society,” said Mr. Salinas.
For her part, Elisa Salinas, founder of The Women’s Project, explained that more than 14 years ago, with the
launch of the television program Lo Que Callamos las Mujeres the group has maintained the aim of offering women
opportunities to do things differently, to depart from the
cliché of the self-sacrificing Mexican woman, and invite
them to participate in our society much more actively.
Abhijit Pawar, for his part, said he was excited about being in Mexico and being able to contribute to solving the
problems we face today, emphasizing that in India, they
decided to do something different and inspire women.
13
MORE INFORMATION:
http://www.gruposalinas.com/contenido.aspx?p=tanishka-forumes
Innovation in Products and Services
Advance America
Consolidates Operations in 2014
Last year, Advance America consolidated its mission of
becoming the main option for users of financial products
and services; it has offered new and broader alternatives
for the market and for creating awareness among legislators, the media, and the general public about the
value of its service.
Extending Internet
Capabilities
In 2014, the company explored
online loan platforms to satisfy the needs of a growing
number of consumers who
want the convenience of requesting loans from home
or by phone and having the
money deposited directly
in their bank accounts. The
company launched new loan
platforms like Anytime and
Kickstand in selected states to
bolster its online capabilities and
prepare for a massive launch of these
services.
In 2015, the company will broaden its online
loan offering and begin to provide credit directly through
14
the AdvanceAmerica.net site. This will let the company
manage the entire loan process online.
Launching New Products
and Services
Last year, Advance America
celebrated the successful
launch of several products
and services at points
of sale throughout the
United States. The
main offering was title
loans. The company
also provides installment loans in five
states, and its tax-return preparation services rose by more
than 50% from the previous year.
Advance America has also
been developing a new loan
service and point-of-sale system
called NextGen. This platform will
improve customer service and optimize
everyday processes for a growing number of products.
Names &
FACES
Jorge Garralda • General Director of
Juguetón and A Quien Corresponda
Jorge Garralda is one of the few executives who remained with the company
through the transition from government to private sector more than two
decades ago. And he has had unparalleled success.
Before Azteca, he had hosted programs
with different formats, in addition to
having a radio newscast. When the
group headed by Ricardo Salinas acquired the company, Mr. Garralda was
surprised to hear they wanted him to
stay on and host a news slot and later A
Quien Corresponda, a program dealing
with social issues that’s celebrating its
25th anniversary on the air.
15
Mr. Garralda played a very important
role in the early days of the network and
was consulted by Ricardo Salinas about
different challenges that were arising. In
addition, his sensitivity to social problems led him to get involved in initiatives
like Plantel Azteca and Vive Sin Drogas,
a touring addiction-prevention campaign presented to large groups.
“Our social commitment is consistent
with the dimensions of Grupo Salinas,”
says Garralda. In addition, he derives
great satisfaction from seeing how the
participation of all the group’s company employees has increased. “We do
business, but we also support those
most in need,” he adds.
16
The Best of
Social Networks
The Best
OF the blog
New Year’s Message to My
Partners at Grupo Salinas
Our Social Commitment
in 2014
Today, companies have become true vehicles for social change, since in addition
to creating jobs and wealth, they are an
important medium for transforming the
communities in which they operate. Today there is dependency among companies, society, and government. This implies that business decisions and public
policies should follow the principle of
“shared value,” since the success of the
company and society mutually reinforce
each other. Indeed, it has been shown
that prosperous companies create thriving communities and vice versa in a virtuous circle that enables us to grow and
develop.
BLOG
17
Just over six years ago the worst financial
crisis in eight decades broke out, and the
global economy has still not fully recovered. In the past few weeks, strong volatility returned to markets. International
oil prices have fallen 40% since June, and
the Mexican peso dropped 12% against
the dollar in the same period. Some
emerging countries are at risk of default,
while large areas of the world are about
to enter a new recessionary phase. Furthermore, doubts about the course of US
monetary policy are intensifying global
uncertainty. For Mexico, the year was not
exempt from serious difficulties. It began
with a significant increase in taxes that
considerably damaged consumer and
producer confidence, which has still not
recovered. As a result, the real economy
entered a very difficult period that some
specialists characterized as a recession.
BLOG
CONTACTS
Editorial
Committee
Bruno Rangel
Jesús Velázquez
Daniel McCosh
Arturo Longares
Linda Garcidueñas
Alejandro Vázquez
Carlos Casillas
Rolando Villarreal
Mitzi Ramírez
Investor Relations, Grupo Salinas Investor Relations, Grupo Sali
Bruno Rangel • (5255) 1720-9167 • [email protected]
Public Relations, Grupo Salinas USA
Nathalie Rayes • (818) 683-4178 • [email protected]
International Press Relations, Grupo Salinas
Daniel McCosh • (5255) 1720-0059 • [email protected]
Information GS Hoy
Jesús Velázquez • (5255) 1720-5777 • [email protected]
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