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F e b r u a r y 2 0 1 4 / I s s u e 7 2 Content > Letter to Our Readers > Contacts > Grupo Elektra Acquires Blockbuster México Grupo Elektra closed a deal in January to purchase Blockbuster México, another step in its expansion. With this acquisition, the company adds more than 300 points of sale to its distribution network, made up of more than 6,400 branches. The Blockbuster stores are located in 108 cities throughout Mexico and represent new socio-economic market segments. Read more… > Letter to Our Readers Technology is more and more present in families’ daily lives and companies’ operations. That’s why we have made connectivity and the technological advances we foster through our companies the central topic of this month’s issue. One of those advances is digital entertainment, which we will be promoting even more thanks to our purchase of Blockbuster México. This will allow us to expand our network of more than 6,400 branches by more than 300 points of sale and broaden out our customer base. But that entertainment wouldn’t be possible today without connectivity, which is becoming increasing important for development. It is impossible to conceive of growth without access to the technology that makes life easier and businesses more efficient. Our companies have the mission of contributing to putting these tools within reach of society. One example of this is the Colombian project, where, in addition to laying the largest fiber optic network in Latin America, we have won the bidding to build and operate kiosks that will offer broadband Internet access as well as to take Internet connections to publically financed housing. Another project we are participating in that will have a big impact on society is the generation of clean energy, through investment in a wind farm in the state of Jalisco, with which we ratify our commitment to improving the environment. We also want to welcome our sister station Azteca Honduras, which recently began broadcasting with its own productions and the best of the programming that we produce. In addition, Azteca is preparing the premiere of new productions for mid-year. As always, I want to thank you for your preference and your interest in Grupo Salinas. Luis J. Echarte 2 >> At the end of last year, Azteca Comunicaciones Colombia won the bidding for contracts with the Ministry of Information Technologies... read more > Content page 5 While many continue in the dispute over fossil fuels that pollute and contribute to global warming... Azteca Deportes is ready for the 2014 Soccer World Cup in Brazil and is launching its Aztecarioca promotional campaign... 3 read more > read more > read more > page 7 After winning the bidding for an over-the-air (TDT) digital television channel in Honduras,... page 9 Azteca Comunicaciones Wins Bidding for Two New Contracts in Colombia ....................................................................................................5 Connectivity, Lever for Development................................ ………………… 6 Grupo Salinas, Committed to Clean Energy ……….................................. 7 Ricardo Salinas’ Site Is Revamped …………………..................................... 8 Azteca Deportes Launches Aztecarioca ................................................... 9 La Isla Participants Announced ……………………………………….......…. 10 Azteca Announces New Productions ……………………...................... …. 11 Azteca Honduras Begins Broadcasting ………………………………….... . 12 Prizes Go to Limpiemos Nuestro México Contest Winners ………….... 13 Box Azteca Returns …………………………………………………................ . 14 Names and Faces: Alejandro Vargas Durán …………........................ ….. 15 The Best of Ricardo Salinas’ Blog ……………………………............ ……… 16 page 12 After 11 years of being Banco Azteca’s director of norms, Alejandro Vargas was appointed vice chairman in 2013... read more > page 15 >> (continued from page 1) Grupo Elektra Acquires Blockbuster México Grupo Elektra plans to offer new products in addition to strengthening its financial services platform and pave the way to digital entertainment distribution. 4 *POS: Puntos de Venta >> S t r o n g T r a c k R e c o r d i n T e c h n o l o g y Azteca Comunicaciones Wins Bidding for Two New Contracts Colombia in At the end of last year, Azteca Comunicaciones Colombia won the bidding for contracts with the Ministry of Information Technologies and Communications; one will be for building and operating 1,753 Internet kiosks in rural areas and the other is for the installation of 144,386 high velocity Internet connections in low-income housing and in new public institutions. In the first project, the company will offer broadband Internet access at kiosks called Vive Digital to students and teachers in 11 of Colombia’s departments, in educational venues, which will operate 24 hours a day. The Vive Digital kiosks are created to foster the use of information and communications technology in rural and remote areas of the country, through better equipment, greater speed, and training. 1,753 kiosks in rural areas 144,386 installations providing Internet access to low-income homes The second project will provide broadband Internet access to low-income homes and new public institutions in 617 municipalities in 20 of Colombia’s departments. With this supply, users will be able to access broadband technology at very accessible rates. Making Azteca Comunicaciones Colombia responsible for these two projects is a reaffirmation of the Colombian government’s trust in Grupo Salinas. Azteca Comunicaciones Colombia is currently building Latin America’s biggest fiber optic network. This is the Colombian government’s flagship project for increasing access to new technology and the benefits it brings in education and entertainment for the inhabitants of Colombia’s more remote areas. 5 >> Constant technological development is rapidly transforming our habits. Communications, business, education, entertainment, and practically every activity imaginable have all been impacted by the different devices that make our lives easier. The rush of modern living demands that we use our time to the maximum. That’s why being able to be connected anywhere, anytime to deal with work or to be near our family and friends becomes a necessity. Today, the issue is connectivity, a fundamental tool for development. Bringing people into contact with technology that will make their lives easier, that will provide well-being and allow them to get a glimpse of worlds that they had never imagined is a priority. connectivi ty L D ever for evelopment “Sustainable development cannot exist today without connectivity: it allows us to shorten distances, improve families’ well-being, increase the productivity of businesses, and access information in real time. Being connected brings us into contact with knowledge, entertainment, and inter-personal relationships.” Ricardo Salinas 6 >> N e w W i n d F a r m O p e n s Grupo Salinas Committed to Clean Energy While many continue in the dispute over fossil fuels that pollute and contribute to global warming, Grupo Salinas is collaborating in the implementation of sustainable forms of energy in our country, with the inauguration of the Los Altos Wind Farm in the state of Jalisco. In the ceremony participated Jalisco Governor Aristóteles Sandoval Díaz; Mexico’s Minister of Energy Pedro Joaquín Coldwell; Enrique Ochoa Reza, general director of the Federal Electricity Commission; Ninfa Salinas, president of the Senate Environment and Natural Resources Commission; and José Pablo Fernández, CEO of Grupo Dragón, among other public figures. At the event, Grupo Salinas Chairman Ricardo Salinas Pliego stated that our commitment is to consolidate ourselves as a technologically advanced, innovative organization, but at the same time to preserve our country’s non-renewable natural resources. 7 He also noted that the Los Altos de Jalisco Wind Farm is iconic worldwide because it is the first one built at 2,500 meters above sea level and the first of its size in the Western Hemisphere. Jalisco Governor Aristóteles Sandoval said that the investment in the wind farm is cutting edge, a bet on technology and innovation. He added that the project makes it very clear that it is possible to put technology at the service of the environment and that generating green energy represents economic growth and a great deal of satisfaction. For Ricardo Salinas Pliego, this kind of project summarizes the Grupo’s entrepreneurial and business philosophy because it is an example of how to combine efficiency with social responsibility. >> D e s i g n Ricardo Salinas’ Site Is Revamped I n n o v a t i v e After five years, Ricardo Salinas Pliego’s personal website (www.ricardosalinas. com) has a new look. The refreshed site has an innovative design that highlights content about the activities, vision, and business philosophy of Grupo Salinas’ chairman. In addition to the design, this site has been built with an eye to connectivity devices such as tablets and smartphones, with an interface that makes the site more interactive with social networks. The www.ricardosalinas.com site is developed by a multidisciplinary team in areas like design, programming, publishing, and communications. Ricardo Salinas is the first Mexican entrepreneur to regularly write a blog to express his ideas about issues like business, the economy, and, recently, his proposal for cultural change. 8 w w w . r i c a r d o s a l i n a s . c o m >> W e ’ r e R e a d y f o r t h e W o r l d C u p ! Azteca Deportes Launches Azteca Deportes is ready for the 2014 Soccer World Cup in Brazil and is launching its Aztecarioca promotional campaign for one of the premier sporting events in the world. Filmed in Brazil, the campaign captures the beauty of the cities of Rio de Janeiro, Pantanal, Grumari, and Iguazú. Directed by Felipe Fernández del Paso, the cinematography was seen through the lenses of Daniel Cruz Rincón, José Stempa, and Francisco Ohem. With this production, Azteca is ready to take World Cup excitement into Mexican homes. The Selección Azteca analysts and hosts are Inés Sainz, Luis García, Christian Martinoli, Jorge Campos, and Carlos Guerrero. 9 >> T h i r d S e a s o n o f R e a l i t y S h o w E x c i t e m e n t “La isla” Participants Announced Azteca 7 made a spectacular announcement of the participants in the third season of La isla, the adventure reality show that challenges skills and endurance and has thrilled millions of viewers in Mexico and the United States. After the second season success, the production team has brought together a talented group of celebrities from different spheres to complete for the cash prize numbered in the millions. The 12 celebrities are Sylvia Sáenz, actress; Doctor Wagner, wrestler; Regina Murguía, singer and actress; Chacho Gaytán, musician and composer; Nara Falcón, Olympic athlete; Fernando Alonso, actor; Jimena Ochoa, professional surfer; Armando Torrea, actor; Bárbara del Regil, actress; Víctor González, actor; Gabriela Vergara, model and actress; and Julio César Chávez, one of the best boxers in history. Six other participants in this adventure are not public figures, but were selected at casting calls 18 participants will compete for a cash prize worth millions of pesos held in different cities around the country and by Internet: Carla Arredondo, Francisco Covarrubias, Luisito Rey, Andrea Riquelme, Delia García, and Enrique Manica. This season, the 18 participants will journey to Nicaragua’s San Juan Island, a setting with rough terrain and an active volcano to add to the excitement. Alejandro Lukini will again host La isla, whose third season is slated to premiere in July 10 >> N e w H i t s o n t h e W a y Azteca Announces New Productions Azteca is preparing big surprises to please its audiences in 2014. Roberto Romagnoli, director of entertainment and production, said that the second seasons of reality shows La Academia Kids and México Baila are his most ambitious projects, in addition to a new children’s program and a Mexican version of Italy’s El Legado. The casting calls for the new reality show seasons will be held at mid-year, said Romagnoli, while the cast of the new 2014 children’s program will be made up of the first graduates from La academia kids. Rogamnoli added that the children will also be participating in some of the telenovelas Azteca is preparing; several of them may even get the chance to host and to record their own CDs. For the time being, though, they will soon start a concert tour of several cities around the country, accompanied by their parents and chaperoned by the television network. The Mexican version of the Italian game show El Legado will premiere at mid-year hosted by Sergio Sepúlveda, who also participates in Venga la Alegría and Difícil de Creer. 11 Sergio Sepúlveda will host Mexico’s version of El Legado >> O u r S i g n a l R e a c h e s N e w F r o n t i e r s Azteca Honduras Begins Broadcasting After winning the bidding for an over-the-air (TDT) dig- Azteca Honduras plans to increase production with ital television channel in Honduras, Azteca began mak- sports, entertainment, and editorial opinion shows to ing broadcast history late last year. become the leader in the region. With a top production team, Azteca Honduras offers The license Azteca won is the first to be awarded in its own locally-produced programming, combined with Honduras to operate over-the-air digital television with programs broadcast from Mexico, including news, en- national coverage. tertainment and telenovelas. The productions include the newscast Hechos with local information, plus Ventaneando Acá and Qué Chilero. www.azteca.com.hn 12 https://twitter.com/aztecahonduras www.facebook.com/aztecahonduras >> S t i m u l u s f o r P u b l i c P a r t i c i p a t i o n Grupo Salinas held the awards ceremony for the three Limpiemos Nuestro México 2013 cleanup campaign competitions: “Community Environmental Leaders,” “Recycle 2013,” and “Mexico’s Cleanest Cities.” The object of the contests is to honor the efforts of community members who promote a cleaner, healthier Mexico, as well as strengthening our country’s recycling culture. The first prize of Mex$100,000 for the “Community Environmental Leaders 2013” contest went to the HUB Riviera Maya brigade, which worked on the Sian Kaan, Quintana Roo Biosphere Reserve. For the “Recycle 2013” contest, the first-prize winner was Artemio Montesinos from San Cristóbal de las Casas, Chiapas, with his project “Recicleta.” Finally, the state of Sinaloa won first place in the “Mexico’s Cleanest Cities” contest. Prizes Go to Limpiemos Nuestro México Contest Winners 13 Gustavo Guzman, Grupo Salinas sports director; Javier González Franco, CEO of Bimbo; Juan José Guerra Abud, Mexico’s minister of the environment; Ricardo Salinas; and Esteban Moctezuma, executive president of Fundación Azteca >> P r e s e n t i n g T o p B o u t s The 2014 season of Box Azteca got off to its official start. With support from Zanfer Productions, the first fight of the year was held between Antonio “Tony” de Marco and Jesus “Pantera” Gurrola. Tony won in the second round. The bout was held at Tijuana’s Tecate Arena and was broadcast nationwide with coverage by Box Azteca, for all the fans who, year after year, increase the number of followers with their continual support for Mexican fighters. Top fights are expected to continue throughout the year with boxers like Juan Manuel Márquez, Timothy Bradley, Julio César Chávez, Jr., Omar Chávez, Rafael Márquez, and the newcomers who are competing to be counted among the greatest national stars, together with Casa del Boxeo, Box Azteca. Returns Box Azteca 14 Great figures like Jorge “Travieso” Arce, Marco Barrera, and Jackie Nava share their experience with the newcomers N a m e s a n d F a c e s Alejandro Vargas Durán Vice Chairman of Banco Azteca After 11 years of being Banco Azteca’s director of norms, Alejandro Vargas was appointed vice chairman in 2013. This was part of a restructuring that made Luis Niño de Rivera the bank’s CEO. Mr. Vargas was one of the bank’s first executives, and he worked closely with regulators from late 2001 until the institution’s license was approved the following year. He remembers launching Banco Azteca as an exciting challenge because of its novelty and the sheer size of the project. Starting from zero and opening up 800 branches from one day to the next represented one of the biggest openings in the history of Mexico’s banking system. Today, Banco Azteca serves more than 18 million customers. Through the years, a team has been forged that develops international expansion, taking the Banco Azteca model to Panama, El Salvador, Honduras, Guatemala, Peru, and Brazil. At the same time that new potential markets are being explored, Vargas says the focus is on consolidating operations where we already have a presence. In the face of greater regulation, he says we will have to continue the hard work to develop our banking model that is focused on the base of the pyramid. With strong experience in the public sector, Vargas tells us that coming to Grupo Salinas was a great opportunity, and at the same time a formidable challenge. “Grupo Salinas is one of the country’s most important entrepreneurial groups and is always on the move.” That’s why, he adds, it’s enormously satisfying to be able to offer innovative products that have a positive impact on the lives of so many customers throughout the hemisphere. 15 >> The Great EnvironmentDegeneration Friendly Energy Awareness and action are key to achieving the cultural change that Mexico needs to embark on, because “a journey of a thousand miles begins with the first step.” In this regard, I recently had the opportunity to read The Great Degeneration. How Institutions Decay and Economies Die, a book by Scottish historian Niall Ferguson. Based on the same arguments as Adam Smith (and others like David S. Landes, Paul Collier, Daron Acemoglu, and James Robinson), Ferguson outlines the factors that lead a country to stagnation. He offers a provocative examination of the extensive institutional decay that threatens the future of Western civilization. The symptoms of the decline are clear: crime, less economic growth, lower quality education, crushing debt, poverty, and rapidly aging populations, among others. 16 Grupo Salinas participated in opening up Jalisco’s first wind farm, and the first to be built at 2,500 meters above sea level in the Western Hemisphere; it will displace more than 79,000 tons of CO2 that would otherwise be spewed into the atmosphere with traditional power generation. The project is located in the community of Ojuelos in Los Altos. But more than a record, this innovative project represents a tremendous investment of private-sector capital that aims to generate the renewable energy that Mexico needs. On the one hand, the efficiency in the construction and development of the project should be noted. But on the other, the social responsibility involved is also very important. Every time we consume a barrel of oil we leave less for the use of future generations. It is a matter of responsibility and that is what we’re doing today, generating renewable energy. Limpiemos Nuestro México: Strength Is in Our Unity We have concluded the 2013 Limpiemos Nuestro México cleanup campaign and recently held the final awards ceremony. We can say that after five years of intensive work we are beginning to see concrete results. This initiative began as a small idea that has flourished among individuals. Today we have a program with a growing national and international presence, in countries like Peru, El Salvador, Guatemala, and even China, as well as our work in collaboration with Grupo Bimbo. The Limpiemos Nuestro México campaigns bring us together as a society around a common goal and that, in and of itself, is important. In all, 21 million people have participated during the five campaigns. Together, they have picked up 100,000 tons of garbage from our streets, parks, rivers and beaches. http://ricardosalinas.com/blog/blog.as- http://ricardosalinas.com/blog/blog.aspx- http://ricardosalinas.com/blog/blog.aspx?GUID=3cf px?GUID=5b506f53-1f87-45d3-b53a- ?GUID=988de847-a364-4319-b95d-e6528f- 9b3b9-34eb-4498-9606-c27f25e0cdf7&lang=es >> Editorial Committee • • • • • • • • • Bruno Rangel Jesús Velázquez Daniel McCosh Elena Arceo Arturo Longares Linda Garcidueñas Alejandro Vázquez Carlos Casillas Rolando Villarreal w w w. g r u p o s a l i n a s . c o m Contacts Investor Relations, Grupo Salinas 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 Elena Arceo • (5255) 1720-0060 • [email protected] F e b r u a r y 2 0 1 4 / I s s u e 7 2
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