from its original language. LEADING LEA D IN G LEADING · 2016 Sustainability report WHA IS DIRECTV? We stand as the largest satellite pay-TV operator worldwide, providing coverage

2016 Sustainability Report

LEADINGPOSITIVE CHANGES





LEADING POSITIVE CHANGES

This report has been translated from its original language.

DIRECTV Colombia

Annual Sustainability Report

|

Occupational health

and safety 36

Change leaders 42

Involvement in public

affairs 19

Acountability and

transparency 20

2016 Sustainability report

SUMMARY

REPORT PARAMETERS

WE PRESERVE WE SHARE WE INTEGRATE WE COOPERATE WE ENTERTAIN WE ARE SUSTAINABLE

WE ARE COMMITTED

4 The chain value 39 Dynamism and

diversity for the sake

of growth 27

We are committed to

the future 49

DIRECTV

Generation 44

A360º management 15 Product-related

accountability and

ethics 22 Our suppliers 40

WELCOME LETTE FROM OUR CEO

Ongoing education 31 Efficient resource

management 51 Tracking satisfaction

levels 25

Strengthening ties with

our stakeholders

groups 16

5 Bussiness benefits and

flexibility 33

Keys to a lasting

relationship 41

What is DIRECTV? 7

DIRECTV Colombia

LTDA. 8

Our essence 9

At the forefront of

technology 10

Business integrity and

ethics 11

EXHIBIT

DIRECTV 2016

Sustainability Report -

Table of contents 52

4

2016 Sustainabillity Report

REPORT PARAMETERS

Conducting a transparent operation and maintaining a

fluid communication with all our stakeholders’ groups

is paramount to DIRECTV Colombia.

That is the reason behind our decision to issue this

first sustainability report, which allows us to account

for our management in the social, financial and

environmental arenas. This edition therefore erects

as the initial Corporate Citizenship and

Sustainability report issued by this DIRECTV

subsidiary.

The information contained herein is laid out in

accordance with the essential “conformance” to the

GRI (Global Reporting Initiative) G4 guidelines and

was drafted by DIRECTV Colombia’s Corporate

Social Responsibility area in cooperation with all of

the company’s areas, whose engagement in

delivering the required information was vital.

All opinions, suggestions, enquiries or comments

related to this report are highly welcomed and may be

addressed to the following e-mail address:

[email protected]

OR YOU MAY CONTACT US BY

WRITING TO:

Luis Guillermo Hernández

Corporate Social Responsibility area,

DIRECTV Colombia Ltda., Bogotá, Colombia.

5

WE ARE COMMITTED 2016 Sustainability report

A MESSAGE FROM DIRECTV COLOMBIA’s CEO

DIRECTV has been a part of the AT&T family since

2015, and that has earned us both the

acknowledgement for our high quality, product and

service standards as well as increased customer

reliability on our company. In addition, this

cooperation allows us to expand our market, as the

company currently serves over 26 million customers

in the US, along with over 19 million in Latin

America, including Mexico and the Caribbean region.

All DIRECTV areas are committed to the quest for

new opportunities that may bring an enhanced

experience and maximize the potential of our staff, our

community and our environment as the underpinning

for present and future development. Thus, each link in

our value chain is paramount to the fulfillment of our

mission: provide Colombian households with the most

outstanding entertainment offer.

Since our arrival in Colombia, we have been at the

forefront of content and technology implementations.

We have two digital platforms available which allow

us to reach out to any corner of the globe through

mobile devices, tablets and computers.

We have taken the concept of television to a higher

stage, based on the premise that DIRECT will always

be present in any place with a view of the sky, by

reaching out to both urban and rural areas of the

country in order to bring them a quality, service and

innovation offer based on a self-installed prepaid

product. Moreover, our post-paid, customized

packages indulge our customers in the most

outstanding quality content and our exclusive

movies, series and sports events.

On the other hand, as of 2014, our service portfolio

has been expanded to include access to Internet

connection for our users with which we are reaching

out to over 120000 subscribers around 215

municipalities, thus contributing to boosting

connectivity in the country’s most remote regions.

Our growing trend has gone hand-in-hand with our

also growing commitment to the country development,

embodied by social investment programs intended to

contribute a hopeful future outlook to the most

vulnerable communities, while also managing the

required resources sustainably in order to avoid

compromising our future generations’ needs.

DIRECTV Colombia operates on the basis of

transparency and maintains an open communication

with its stakeholders’ groups and that is the reason

behind the issuance of this first sustainability

report, which allows us to account for our

management in the social, financial and

environmental arenas.

Michael Bowling

CEO

DIRECTV Colombia

01

We are committed

What is DIRECTV?

Our essence

At the forefront of technology

Business integrity and ethics

7


WHA IS DIRECTV?

We stand as the largest satellite pay-TV operator

worldwide, providing coverage to 25.3 million users

in the US and 12.5 million in Latin America. We were

a fully publicly-traded company listed on New York’s

NASDAQ until July 2015, when we merged with

AT&T to become an integral part of it.

8


DIRECTV COLOMBIA LTDA.

Headquartered in the city of Bogotá, DIRECTV

Colombia erects as a 100% privately-held “limited”

partnership made up by two main partners: DIRECTV

Latinoamérica LLC and Galaxy Latinoamérica

Investment LLC.

From this headquarters, cable tv service is provided to

over 1200000 households, including both post-paid

and prepaid customers. Our goal is to offer an

outstanding entertainment experience anytime,

anywhere. Our service provides top-quality digital

sound and image to customers subscribed to monthly

invoice-based payments (post-paid packages) and to

those only able to pay for a minimum day-based TV

service (prepaid).

Our headcount currently features 930 own

employees, with 494 out of them being male and 436

being female.

AN INDEPENDENT ORGANIZATION

DIRECTV Colombia does not receive any

governmental funding for any of its programs or

operations or for the implementation of its Corporate

Social Responsibility strategy. Neither does it

outsource the implementation of regional programs or

make cash donations or receive funding from public

or private institutions.

LANDMRK FIGURES

930

1238992

Own employees

MALE 494

FEMALE 436

Customers

PREPAID: 697080

POSTPAID: 541912

6 regions

CUSTOMER BASE AS OFDECEMBER 2016

TV NET

Post-paid Prepaid 90 Post-paid Prepaid 90

Bogota 165.926 29.982 500 2

Central region 99.330 120.623 21.506 3.325

Western region 88.525 106.975 19.397 2.877

Northwestern region

71.296 166.076 12.140 4.218

North region 75.656 208.678 20.977 19.972

Eastern region 41.179 64.746 9.002 2.550

TOTAL 541.912 697.080 83.522 32.944

9


OUR ESSENCE

We aim to becoming the most outstanding

entertainment experience anytime, anywhere. And

how will we go about it? By offering exclusive and

engaging content coupled with state-of-the-art sound

and image technology and quality service to those

users relying on us.

Our values:

Leadership

Innovation

Determination

Agility

Teamwork

Integrity

OUR BUSINESS OBJECTIVES

1. Provide our customers with WOW experience.

2. Achieve further growth in our three market

segments.

3. Streamline the organization efficiency and be an

inspiration.

4. Commit ourselves to our employees and our

community.

10


AT THE FOREFRONT OF TECHNOLOGY

All DIRECTV areas are committed to the quest for

new opportunities that may bring an enhanced

experience and outstanding service.

DIRECTV Colombia provides prepaid TV, post-paid

TV and Internet services, three areas where we strive

to identify opportunities tending to enhancing

financial performance while also sticking to our

pledge to offer top product quality, excelling

channel content and outstanding customer

service.

At DIRECTV, technological innovation is not

incumbent upon one single company area. Contrarily,

it consists in an attitude and behavior observed by

all our employees on their daily performance,

whenever they identify opportunities to enhance our

customers’ experience, our business processes, our

financial performance and traded products’ quality.

For instance, in 2016, DIRECTV tackled the challenge

of launching a new prepaid TV business model

intended to increase product profitability. This initiative

was endorsed by all the company areas, which were

actively engaged in the record-time design of a new

content, sales and customer service proposal to

include digital technology-supported self-service tools.

All of these measures enabled us to reach out to major

segments of Colombia’s population not subscribed to

pay-TV services before.

Among other technological initiatives implemented in

previous years and yielding a competitive advantage

during 2016 are the following:

The launch of high-capacity satellites for HD TV

channels broadcasting,

The development of exclusive tools in the industry

to enable technicians to qualitatively activate TV

services, thereby avoiding future technical visits,

The implementation of platforms for viewing TV

anytime and anywhere, among the most

outstanding ones.

11


BUSINESS INTEGRITY AND ETHICS

We are convinced that, in order to be best-in-class, our

business should be guided by the highest integrity and

ethics standards, which shall erect into the pillars to

offer customers an enrichening experience, consolidate

our fruitful relationships with our partners and build a

robust corporate culture.

CORPORATE GOVERNANCE

Our governance structure consists of our general

manager and vice-presidents, entrusted with

outlining the main business course of action, as well

as with establishing key strategies and processes

and the Sustainability and Corporate Social

Responsibility guidelines.

Governance body: • 7 members • 3 men y 4 women • 6 in the 30-50 age group, and 1 over 50 • 6 Colombian citizens (86%) and 1 American citizen

DIRECTV COLOMBIA’s GOVERNANCE STRUCTURE

DTV COLOMBIA DECEMBER 2016

Micheael Bowling

President Regional

Bogotá, Colombia PHONE: 6516000 EXT. 1001

NATIONAL LEADERS VERTICAL LEADERS

ESTEBAN TELLEZ

Marketing VP


[email protected]

ROBERTO CASTRO

Customer Experience VP


[email protected]

CAROLINA GARCIA

Finance VP


[email protected]

JUAN CAMILO CASTRO

Legal Affairs Director


[email protected]

MARIA E. RESTREPO Sales VP Bogotá, Colombia PHONE: 6516000 EXT. 1161

[email protected]

ENRIQUE PINEDO Field Operations SR. Director Bogotá, Colombia PHONE: 6516000 EXT. 1012

[email protected]

NATALIA IREGUI Institutional Relations VP Bogotá, Colombia PHONE: 6516000 EXT. 1030

[email protected]

EDGARDO MOSCA Broadcast Center Director Bogotá, Colombia PHONE: 6516000 EXT. 1310

[email protected]

OLGA LUCIA GIRALDO Human Capital Management VP Bogotá, Colombia PHONE: 6516000 EXT. 1022

[email protected]

12


APOYO INSTITUCIONAL

DIRECTV Colombia apoya iniciativas

externas en el ámbito de la educación, la

reconciliación y la paz a través de una

alianza con el Ministerio de Educación

Nacional, y del trabajo con Gobiernos

regionales y locales, la Agencia para la

Normalización y Reincorporación y la

Asociación Nacional de Industriales (ANDI).

INSTITUTIONAL SUPPORT

DIRECTV Colombia endorses external

initiatives in the areas of education,

reconciliation and peace in cooperation with

the National Department of Education and

the regional and local governments, as well

as with the Agency for Reincorporation and

Normalization and the National Businesses

Association (ANDI).

EVERYONE UNDER ASSESSMENT

Just as is the case of company employees, the

governing body members are jointly assessed twice a

year by the CEO and the Human Resources

Management area in a process seeking to ensure that

each Vice-president may be aligned with the internal

requirements necessary for the adoption of measures,

where appropriate.

CODE OF ETHICS

DIRECTV’s Board of Directors adopted the Code of

Business Ethics and Conduct, designed to promote

an honest, ethical and law-abiding conduct. Any

employee who may know or learn about an

infringement to this code shall have to promptly report

it to his/her supervisor or to the company help desk.

Ethics Point

USA: 1-800-385-9470

For reporting outside the USA: 1-800-385-9470 /

1-503- 748-0500

www.ethicspoint.com

ANTI-CORRUPTION POLICIES

As DIRECTV is an integral part of AT&T, a publicly-

traded company listed on the the New York Stock

Exchange, DIRECT Colombia’s anti-corruption

policies abide by the American FCPA standard

(Foreign Corrupt Practices Act), which strictly bans

the authorization, offering or pledging on behalf of

the company of any direct or indirect benefit to public

officers intended to being awarded or retaining a

business or somehow generate an undue advantage.

In addition, the aforementioned act provides

guidelines to manage any expenses linked to

governmental officers or agencies, including

expenses caps, frequency, etc.

These anti-corruption policies are applicable to all of

DIRECTV Colombia’s employees. It is incumbent

upon the Human Resources area to verify that none

of our employees may be listed on the OFAC’s (Office

of Foreign Assets Control) records of individuals and

companies having infringed any of the US

Department of Treasury’s regulations.

On the other hand, any company interested in serving

as a DIRECTV supplier is caused to undergo a due

diligence process before being hired, consisting in a

reputation review (based on documentation

requested, lists and public information verification) by

the Procurement area, in cooperation with an

independent assessment company contracted by

such Procurement area. In the event of unfavorable

results turned out for such prospective supplier

concerning asset laundering, terrorist activities

funding, asset recovery or their source crime, such

company is not to be added to the company supplier

base. 100% of prospective suppliers are checked on

different lists before moving into the contracting stage.

This review is conducted on a regular basis in order to

mitigate the risk of any suppliers incurring in

objectionable or corrupt behaviors.

The Internal Control area conducts a similar process

of review of all our customers by verifying they may

not appear on the OFAC lists or on any other relevant

ones1.

During 2016 no corruption cases were reported at

DIRECTV Colombia.

NO DISCRIMINATION

DIRECTV Colombia applies a no-discrimation and

no-harassment policy to all of the company staff

1 For further information, please refer to the self-control and asset laundering and

terrorist activity funding management manual of procedures, SAGRALFT.

13


TRAINING ON ANTI-CORRUPTION

RELATED STANDARDS

FCPA-related policies are communicated to

100% percent of the company staff, and so is

the Code of Ethics. At DIRECTV Colombia

there is an officer serving at the Corporate

Compliance area who is entrusted with

providing annual trainings on this isue to all

the company staff.

These trainings are provided on annual basis

to employees in the “Head of department”

category or upwards.

There have been no legal actions brought for

corruption cases againts the organization or

its employees.

IFor this purpose, communication channels are

provided so that employees may report this type of

behavior, such as:

Ethics point

Community Committee, established as per the legal

requirement contained in the 1010 Workplace

harassment Act enacted in 2006.

There were no reports of discrimination cases in

2016, on the basis of the human resources area

criteria applied for gender equality and inclusiveness

in terms of sexuality, ethnicity and religion.

DIRECTV Colombia does not currently earmark

specific funds for training on Human Rights related

issues. As of 2016, this issue has not been included

in our scope of management.

EMPLOYMENT PRACTICES RELATED

CLAIMS

DIRECTV Colombia is concerned with the claims

arising from two groups: own employees and third-

party employees. AS regards own employees, we

implement a preventive approach by aiming to fully

complying with all legal provisions.

During the course of annual auditing processes in

employment and occupational health and safety, we

apply a strict surveillance scheme to the issue of

employment compliance and we additionally prepare

an annual comparative management report and an

action plan for the adjustment of weak performing

ítems. Among other goals, this is intended to bring

companies into the formal spectrum and we also

resort to working panels.

Below there is a outline of the present status of all

employment related legal actions brought within

January 1, 2016 and December 31st, 2016:

5 claims were brought and dealt with.

3 were settled.

02

We are Sustainable

A 360º management

Strengthening ties with oru focus

groups

Involvement in Public Affairs

Acountability and transparency

15

WE ARE SUSTAINABLE 2016 Sustainability report

A 360º MANAGEMENT

We are convinced that investing in empowering

people, the community and the environment

surrounding us is the underpinning for our

present and future development. Why? Because

the only way we may build a long-term future for

the company is to achieve a type of growth that

brings about a positive impact.

DIRECTV interacts with its stakeholders groups

through different inclusiveness and liaisoning

strategies both at internal and external level:

customer service, cooperation with governments,

social community investment, conversations with

dealers and suppliers.

Offering national coverage TV and Internet

service entails interacting with dealers,

communities and governments on a continuous

basis and, in addition, we seek to ensure their

involvement in business decision-making and

operation processes.

DIRECT Colombia’s full Social Responsibility strategy is managed and endorsed by the National Government’s Deparment of Education, the Colombian Agency for Reintegration (ARN) and the regional and local governments.

16


STRENGTHENING TIES WITH STAKEHOLDERS GROUPS

As we see it, sustainability goes hand in hand with

caring for our stakeholders groups’ expectations and

concerns and making them integral to our daily

management.

HERE ARE OUR STAKEHOLDERS GROUPS:

CUSTOMERS EMPLOYEES OUR VALUE CHAIN

THE COMMUNITY THE GOVERNMENT Who stand at the core of all our activities and as our source of

inspiration

Whose work leads to the fulfilment of our mission: offer the

best-in-class entertainment experience.

as a whole, with whom we have forged a mutual support

relationship we seek to further foster.

At national and local level, in order to ensure an adequate

regulatory environment and the implementation of Social

Responsibilitystrategies in the framework of public-private

partnerships.

including our suppliers and dealers, who help us ensure a top product quality, from their deslgn stage

until delivered at our customers’.

17


Our stakeholders groups are tied to the development

and expansion of the TV and Internet business. Our

mutual relationship aims to allowing them to grow and

generate shared value. Our goal is to provide our

partners throughout the different regions with installed

capacity, given that this is the pillar for our further

development.

COMMUNICATION WITH OUR STAKEHOLDERS

GROUPS

At DIRECTV, we believe in communication being

an essential component in the Social

Responsibility management model. We therefore

provide for non-conventional ways and accountability

stages to bring company and business evolution

information to our stakeholders groups.

This is achieved by means of direct channels, such as

our website, our intranet, our social media,

applications, points of sales countrywide, printed

media and TV content, in addition to a straightforward

press strategy designed to reach out to opinion

makers and fora, as well as to events and

congresses.

As concerns our customers, communication is

channeled as follows:

Inbound telephone service, managed on the

basis of quality and satisfaction standards

Direct SMS or Voice Push marketing

campaigns, targeted to segmented databases and

defined on a product-category basis. This contact

process abides by the Habeas Data policy, meaning

customer data is only used if duly authorized by the

relevant customer.

Web-based, self-management channels,

mobile applications, SMS and phone menus provide

agile solutions for our subscribers’ enquiries to be

taken care of anytime, anywhere.

Supported by our Regulatory Affairs area, we

establish positive relationships with all stakeholders

(including governmental agencies and competitors) in

order to promote changes in ICT and audiovisual

public policymaking, such as amendments to

regulatory standards and regulations governing the

services rendered by DIRECTV.

In this framewrok, the following achievements were

made during 2016:

Representation to the Government and our

competitors of the need for amending Colombia’s

audiovisual public policy.

Representation to the regulatory authorities of the

need to conduct an impact assessment on different

related regulations.

Establishing links with Colombian authorities, such

as ProColombia, the Ministry of Industry, Trade and

Toursim (MINCIT), the National Planning Department

(DNP) and the President’s office, in order to raise

their awareness as to the regulatory amendments

required to encourage the flow of investments into the

country.

18


ESTABLISHING DIALOGUES IN THE QUEST

FOR GROWTH

As a result of a series of mechanisms implemented,

such as communication channels, working panels

and accountability stages, DIRECTV Colombia

maintains an ongoing flow of feedback about its

performance with its stakeholders groups. Their

expectations and concerns are taken into

consideration as a key input for business-related

planning, deployment and decision-making. Four

rounds of talks with stakeholders were hosted: with

suppliers and employees respectively and 2 one-to-

one sessions with our partners at the MInistry of

Education and the Agency for Reincorporation and

Normalization (ARN).

In the pursuit of responsiveness and of critical input for

a continuously improving relationship with our

stakeholders groups, DIRECTV hosted the first round

of talks with key stakeholders attended by own

employees, suppliers and partners. These rounds

focused on the company’s sustainable management

(related to material aspects) as well as on the

socialization of the Social Responsibility strategy, a

concerted identification of triple bottomline

risks/opportunities, and the internal review of

inclusiveness and Human Rights iniatives.

On the one hand, the rounds of talks emphasized the

importance attached by the participating

stakeholders groups to the social investment

strategy and the volunteering initiatives, which

have been consolidated into immediate positive

result projects in the beneficiary communities and

have been widely endorsed by the company staff. On

the other hand, improvement opportunities have

been identified in terms of internal communication

and of the gradual incorporation of educational

initiatives with a view to enhancing inclusiveness and

diversity.

As regards dialogue with suppliers, all of those

surveyed replied positively about the company’s

sustainability management, while also highlighted that

the supplier-customer interaction goes far beyond the

mere transactional concept. Moreover, it was

sustained that the proximity and disposition of the

DIRECTV staff they interact with is adequate in terms

of their willingness to cooperate, kindness and

readiness for a mutually beneficial collaboration.

When it comes to improvement opportunities, a

further socialization of the channels for ethical and

environmental misconduct reporting was identified; in

the latter case, suggestion was brought to generate

opportunities in the field of set-top boxes packaging

material management and use and in the

measurement of the environmental impact generated

by suppliers.

The talks with DIRECTV partners were held with

our main aids in the field of Social Responsibility

management: Colombia’s Agency for Reincopration

(ARN) and the Ministry of Education (MEN). Both

entities remarked how strategic the partnership with

our company has been, as they have shown the

relevance of public-private partnership mangement

when it comes to key issues for the country, such as

education and the impact and transformation they

may bring about.

Even though we currently have no official impact

measurement, as of 2017 DIRECTV is to undertake

this measuring process in order to have a clear

picture of the impact brought by these partnerships

and the programs set up in their framework.

“I should highlight how trustworthy and

credible DIRECTV is for us at the ARN, as they took the required time to

thoroughly review the Project and, upon deciding to participate, they fearlessly

stepped up the plate. This is a company engaged in enhancing the

reincorporation process and enormously willing to contribute.””

María Virginia Guzmán, Specialized

Corresponsibility group officer –ARN

“I must emphasize the transforming

power of these shared effort

partnerships in transforming this

country. Companies in the style of

DIRECTV have undertaken a real

commitment to peace in Colombia and,

even though this is a cross-sectoral

endeavor, DIRECTV was able to

understand what needed to be done.”

Miguel Suárez, Strategi Partnerships

Consultant – ARN.

19

WE ARE SUSTAINABLE 2016 Sustenainability report

INVOLVEMENT IN PUBLIC POLICY

Our interaction with the public sector is a core part of

our corporate citizenship. We become intertwined with

other social stakeholders in order to maximize

accountability efficiency, streamline the performance of

the industry as a whole and contribute positively to the

country development.

We are members of the following organizations:

Colombian Information Technology and

Telecommunications Chamber (CCIT)

National Businesses Association (ANDI)

Colombian-American Chamber of Commerce

(AMCHAM)

Interamerican Association of Telecommunications

Companies (ASIET)

2 0


ACCOUNTABILITY AND TRANSPARENCY

In order to become a sustainably performing

company, it is essential that we may define the

relevant goals, measure our results and eventually

report them. This initial Sustainability Report is aimed

to accounting for our activities and their impact on our

environment and, in the process, inspiring others.

Aimed to strengthening the reporting culture across

the region, a materiality exercise was conducted in

order to report the most remarkable sustainability

outcomes and achievements throughout the

regional operations. This allowed identifying those

issues where the company was achieving an

outstanding performance or a meaningful influence in

connection with our stakeholders groups.

In line with DIRECTV Colombia’s operational context,

Social Responsibility management and with the

outcomes of the discussions with our stakeholders

groups, triple bottomline issues were prioritized and

those locally applicable, in addition to regionally

recommended ones were identified. In turn, the

following alignment table was produced:

This table reflecting the alignment of

DIRECT Colombia’s materiality issues to

the Sustainable Development Goals

stands as an introductory step to future

reports, where a more thorough

description of the contribution t o each

identified and prioritized goal is to be

provided.

MATERIAL ISSUE RELATED SDG (SUSTAINABLE DEVELOPMENT

GOAL)

RELATED SDG

(TARGET) SCOPE OF COVERAGE

Quality and Customer Service

Corporate Governance, ethics and transparency

5. Gender equality 16: Peace, justice and robust institutions

5.1, 16.5

Technological Innovation 9. Industry, innovation and infrastructure 12. Responsible consumption and production

9.1, 9.4, 12.5 Internal and external

Diversity, inclusiveness and employability

5. Gender equality 8. Decent work and economic growth 10. Reduced inequalities

5.5, 8.5,10.2

Talent management

4. 4. Quality education 5. Gender equality 8. Decent work and economic growth

4.3, 4.4, 4.5, 5.5, 8.5

internal

Financial peformance and impact in Colombia

8. Decent work and economic growth 8. 9. Industry, innovation and infrastructure 8.1, 9.1 Internal and external

Business-related environmental impact management

12. Responsible consumption and production internal

Social inclusiveness 10. Reduced inequalities 10.2

Information security 16. Peace, justice and robust institutions 16.10

Internal and external

Technological Inclusiveness 10. Reduced inequalities 11. Sustainable cities and communities

10.2 External

Products and services information

Social investment programs

4: Quality education 8. Decent work and economic growth 9. Industry, innovation and infrastructure 11. Sustainable cities and communities

4.4, 4.5, 8.2, 8.5,

9.1, 9.2

Internal and external

Occupational Health and safety 8. Decent work and economic growth 8.8 internal

Value chain dvelopment 9. Industry, innovation and infrastructure

12. Responsible consumption and production 9.1, 9.4, 12.5

Channels for communication with stakeholders groups

16: Peace, justice and robust institutions 16.5 16.7

Plural content 4: Quality education 4.1, 4.3, 4.5, 4.6, 4.7, 4.10 Internal and external

Volunteerring programs

4: Quality education 8. Decent work and economic growth 9. Industry, innovation and infrastructure

11. Sustainable cities and communities

4.4, 4.5, 4,8, 4,10, 8.2, 9.1

National Industry development 8. Decent work and economic growth

9. Industry, innovation and infrastructure 8.1, 9.1

03

We entertain

Product-related accountability and ethics

Tracking satisfaction levels

22

WE ENTERTAIN 2016 Sustainbility report

We implement a transparent, honest and inclusive

commercial communication policy, which also

involves adequate product labeling. Additionally, we

are committed to the protection of customers’

personal data and to monitoring satisfaction levels as

a means of achieving day-to-day improvement.

DIRECTV:

Is against any measleading, offensive or

inappropriate message and we foster fair competition,

without either discrediting or scorning our competitors.

Is engaged in advertising self-regulation. In

turn, supported by our Legal Affairs department, we

review all the communication pieces to be issued by

the different company departments and assess both

content and monetary-related aspects.

Communicates any amendment in contractual

modalities, benefits or promotions in an advanced,

thorough and detailed fashion. When it comes to price

increases, changes in the invoicing cycles and the

programming grid, we issue special communications.

UNFAIR COMPETITION PRACTICES

All of the company legal affairs, including the issue

of unfair competition, are dealt with by our Legal

Affairs Department, which in turn appoints an

external legal counsel to take care of the case, on

the basis of the Procurement department policies

applicable to suppliers’ selection. Occasionally,

whenever appropriate in light of the legal proceeding

conditions, legal counseling services may be hired

outside the scope of the aforementioned policies,

provided the requirements for this type of hiring may

be complied with.

On a quarterly basis, a contingency report, called

Litigation Report, is submitted with the corporate

governance body.

Below, there is a summary of the 2016 litigation

cases, both pending and closed:

1. Metrotel vs. DIRECTV:

In 2015, Metrotel brought a complaint against

DIRECTV on the grounds of unfair competition

derived from the use of the orange color on the

Internet. In December last year the Superintendence

of Industry and Commerce issued its judgment in

repeal of Metrotel claims, and ordered that they may

pay all legal costs.

2. Caracol/RCN vs. DIRECTV:

In 2013, the Caracol and RCN TV channels sued all

subscription-TV operators on the grounds of the

latter’s broadcasting of their TV signals on the

operators’ programming grids with no monetary

compensation. In that concern, operators replied that

such broadcasting was enshrined on the legal must-

carry principle and in related case-law. In September

2016, the Superintendence of Industry and

Commerce issued a judgment in favor of TV channels

by sustaining that authorization on their side is

required for broadcasting their signals. However, in

March 2017, the Justice of Appeals revoked the initial

judgment and acknowledged the must-carry principle

as an exception to copyright, thereby confirming the

position of all subscription-TV operators, including

DIRECTV.

No cases of breach of regulations

or voluntary codes regarding

marketing communications were

recorded during 2016.

.

INFORMATION AND LABELING

All of DIRECTV Colombia set-top boxes labels

indicate the place of manufacturing though no

content information, given that there are no

hazardous substances included. The boxes come

with a manual containing information about safety

and maintenance aspects as well as

functionalities information. No indicator linked to

this process is currently available.

PRODUCT-RELATED ACCOUNTABILITY AND ETHICS

23

WE ENTERATAIN 2016 Sustainability report

MARKETING COMMUNICATIONS

Any claims brought by customers concering

misleading product advertising, promotions and offers

are initially dealt with by the Customer Service area,

including those received from Surveillance agencies,

such as the Superintendence of Industry and

Commerce (SIC) or the National Television Authority

(ANTV). However, when it comes to administrative

investigation cases undertaken by the SIC, the case

is dealt with by our Legal Affairs department.

CUSTOMERS PRIVACY

DIRECTV is highly mindful of customers’ and

employees’ data protection and therefore risk

management related to such information abides by

security frameworks and policies, such as PCI DSS,

SANS 20 Critical Security Controls, Sarbanes-Oxley

and the 1581 Personal Data Protection Act enacted in

2012. This security approach is based upon a

continuous improvement cycle and is intended to

ensure data confidentiality, integrity and availability

through work plans and actions in the fields of

prevention, detection, response and compliance.

DATA RELIABILITY, INTEGRITY AND

AVAILABILITY

We count on a qualified team, able to manage, ensure

and control information, which is divided into the

following areas: governance, risks and compliance;

security operations; security architecture, which is led

by the Chief Information Security Officer (CISO),

entrusted with identifying company risks, needs and

priorities in order to coordinate the successful

execution of data security and protection plans.

DIRECTV has set up internal and external auditing

processes, such as measures intended to the

maintenance and control of the security plans

implemented in our operations. Likewise, we have a

project in place for the implementation and follow-up

of standards regulating personal data protection

issues, which has so far have involved the following

actions:

1. Company risks related to data use and treatment

were identified.

2. The results were reported to the company top

authorities and the decision was made to organize

training sessions to raise employees’ awareness on

this issue.

3. The company’s data use and treatment policy was

reviewed.

4. The company staff members responsible for the

use of data were identified.

5. The project task force is made up by staff from the

Legal, Information Security and Processes/Projects

departments, thereby allowing the implementation of

relevant processes as the company needs in terms of

data use are reviewed.

6. The database report was submitted with the SIC.

7. A tool named NIMITY was acquired to allow, on the

one hand, tracing project development, and, on the

other, reviewing our compliance level vis-a-vis other

companies across different industries.

A customer’s claim related to undue use of personal data,

We were fined on the grounds of undue use of personal data,

A case of a sales representative who had created a parallel database containing information about his customers.

DURING 2016, WE FACED THE FOLLOWING DATA-RELATED EVENTS:

24

WE ENTERTAIN 2016 Sustainability report

REGULATORY COMPLIANCE

All fines are relevant to DIRECTV, as their payment

is born by the area having presumably incurred in a

mistaken action.. All cases of fines imposed on the

company are notified to the Legal Affairs department,

which analyzes each case in order to prepare a

defense, identify the prospective mistake and define

the area or cost center that should bear the payment

of the fine.

In 2016, DIRECTV was fined only once on the

grounds of breach of service supply and use

regulations and legislation, in an amount of

$68945500. Fines have been now reduced as a result

of the measures adopted by the company to mitigate

those risks likely to lead to fines.

In January 2016, DIRECTV was ordered to pay a fine

in the amount of 118998142 Colombian pesos on the

grounds of the infringement of environmental

legislation related to visual outdoors advertising,

when it placed 2010 World Cup sponsoring posters in

public areas.

RISK IDENTIFICATION

ACQUSITION OF THE DE NIMITY TOOL FOR

PERFORMANCE MONITOING

REPORTING TO THE TOP

EXECTUVIES AND TRAINING

DATABASES REPORT SUBMITTTED WITH

SIC

DATA USE AND TREATEMENT

POLICY REVIEWED

IDENTIFICATION OF INTERNAL

RESPONSIBLE STAFF

25

WE ENTERTAIN 2016 Sustainability report

2016 RESULTS

19% Non-resolution rate (unresolved query)3

16% Dissatisfaction:2

47% NPS1 telephone channel

Our key strategic mission is to provide all our customers

with an outstanding experience. Aimed to measuring

their satisfaction and therefore efficiency of our

management, we perform a variety of monitoring

operations.

We strive to offer our customers a defect-free, timely

service in a friendly and kind fashion and are committed

to satisfying their needs and requirements in a level of

excellence.

A service that may be:

Defect-free: we work hand-in-hand with the

business areas in the quest of continuous

improvement in the design of agile, streamlined and

transparent processes for our customers.

Timely: related to the call center attention and

management time indicators.

Friendly and kind: this is ensured through a

service representatives’ monitoring system aimed to

focusing their performance on serving our subscribers’

needs in an empathic, close and personal fashion.

Committed to an excellent satifaction of our

customers’ needs and requirements: this is ensured

by means of processes tending to streamline request

management and settlement on the side of customer

service representatives, based on quality and compliance

standards. In addition, we prioritize the design of digital

functionalities and platforms, such as our MIDIRECTV

channel, where our customers may access to simple and

dynamic solutions anytime, anywhere.

All of these service pillars are monitored on the basis of

a series of indicators, the most outstanding of them

being our service survey, %Service Level, hang-ups,

Calls Per Subs, Repet Calls.

TRACKING SATISFACTION LEVELS

1 Net Promoter Score: Indicator intended to measure

customer loayalty in a 0-10 scale in response to the

following specific question: How likely are you to

recommend the product or service to a friend or

relative? Responders allocating a 9 or 10 score are

considered promoters; those allocating 7 o 8 are

classified as passive and those allocating 6 or lower

scores are regarded detractors. For a result, the

detractor rate is deducted from the promoter one,

thereby obtaining a percentage to measure service

quality .

2 Level of customer’s dissatisfaction with the

telephone attention provided by our representative

during the call

3 Customers are asked if their query was settled

during the call.

4 Percentage of calls answered before the time

deadline.

5 Percentage of calls where the customer hanged up

before the call was answered by a representative

6 Number of calls made by a subscriber within a time

frame (a month) Calls offered/subscriber base.

7 Number of repeat calls made by subscribers within

a time frame (a month).

1. Service survey results

2. %Service Level4:

64 in 30

5. % Overall hang-ups5:

8.5

3. Calls per Subs6:

0.28

4. Repet Calls7:

37%

04

Business benefits and flexibility

Occupational health and safety

We cooperate

Dynamism and diversity for the sake of

growth

Development and mobility

Ongoing education

27

WE COOPERATE 2016 Sustainability report

The DIRECTV Colombia team is made up by 930 staff

members, 494 male and 436 female. Though most of

them are based in Bogotá, we also operate in the

Central, North, Western and Eastern regions of the

country.

DYNAMISM AND DIVERSITY FOR THE SAKE OF GROWTH

Note: all the staff members included in this breakdown are own

employees.

HEADCOUNT

BREAKDOWN GRAND TOTAL

BOGOTÁ NORTH REGION

WESTERN REGION CENTRAL REGION

NORTHESTERN REGION OCCIDENTE

EASTERN REGION

MEN WOMEN MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN WOMEN

MEN WOMEN

28


PAYROLL NUMBER OF EMPLOYEES RATIO NUMBER OF EMPLOYEES RATIO

Total Categoria 1 0.11% 11 1.18%

CATEGORY PRESIDENT

VICE-PRESIDENT AND SENIOR DIRECTORS

Gender-based breakdown

Men 1 100.00% 6 54.55%

Women 0 0.00% 5 45.45%

Age group-based breakdown

Below 30 0 0.00% 0 0,.00%

Between 30 and 50 1 100.00% 8 72.73%

Over 50 0 0.00% 3 27.27%

For DIRECTV, counting on a diverse workforce is

paramount in order to achieve an enriched work

environment and to ensure an inclusive culture that

cherishes differences. That is why our code of Ethics,

as well as all our internal policies and our Leadership

Model (ELM) strongly emphasize our commitment to

promoting the policy of equality and fostering diversity

and inclusiveness, by recognizing the value of

differences and being respectful of them.

This is additionally intended to guarantee a fair and

equitable treatment of all our employees, regardless

of their position at the company, gender, sexual

orientation, political affiliation, age, race, religion, etc.

Inclusive culture Fair and equitable treatment

NUMBER OF EMPLOYEES

RATIO NUMBER OF EMPLOYEES

RATIO NUMBER OF EMPLOYEES

RATIO

40 4.30% 140 15.05% 358 38.49%

Directors and managers Managers and heads of

department Analysts, senior analysts

23 57.50% 84 60.00% 176 49.16%

17 42.,50% 56 40.00% 182 50.84%

0 0.00% 9 6.43% 116 32.40%

38 95.00% 130 9.86% 241 67.32%

2 5.00% 1 0.71% 1 0.28%

NUMBER OF EMPLOYEES RATIO NUMBER OF EMPLOYEES RATIO

380 40,86% 930 100,00%

Sales representatives and CSR (Technical positions) TOTAL

204 53.68% 494 53%

176 46.32% 436 47%

133 35.00% 258 27.7%

29

W E COOPERATE 2016 Sustainability report

AGE <26 26 - 30 31 -35 36 - 40 41 - 45 > 45

M W M W M W M W M W M W

# of leaves 17 16 49 52 60 47 38 24 14 7 14 2

# of returns 16 16 34 29 22 24 18 14 7 3 2 1

2016 2015

M W M W

Total payroll, broken down on a gender basis 494 436 586 493

Total number of employees requesting a parental leave during 2016 26 24 22 38

Total number of employees who returned to work after expiration of parental leave period during 2016 26 24 22 35

Total number of employees remaining at work 12 months after having returned to work from a parental leave 9 19 13 19

Rate of return to work after parental leave during 2016 M W M W

Maternity leave N/A 6% N/A 8%

Paternity leave 5% N/A 4% N/A

Rate of retention of employees on parental leave during 2016 35% 79% 59% 54%

BALANCE AND TOLERANCE

Underpinned by our Human Resources policies, we

strive to help our employees strike a professional

and family life balance. Some of the related benefits

we offer are reduced post-maternity working hours,

teleworking and flexible working hours.

At DIRECTV we support recent parents from our

workforce so that they may return to work upon

completion of their parental leave if they are willing

to. Parental leaves stand as a right enshrined in the

currently effective legislation.

The entire company workforce is covered by the

effective legislation, which provides for right to

parental leaves.

In 2016, 100% of the male and female employees requesting a parental leave returned to work upon expiration of their leave period.

30


INSPIRATION AND COMMITMENT

The business agenda talent stands as a priority among

the Company strategic goals.

2016 GOAL: Inspire our employees and our community and be committed to them.

In order to comply with this goal, the Human Capital

Mangement Vice-presidency’s Strategic Plan ensures

that the training and education processes may be

effectively focused on attracting, retaining and

developing talent as the the most vital company.

During 2016, 93.98% of the Company employees were assessed.

Investing in these processes is a key. Yet,

notwithstanding our budget allocations, we are on an

ongoing process of reviewing our programs so that

they may be aligned with the current needs. An

illustration of this is our “Ruta de Profesionales”

(Professional Track) program set up in 2016 in

response to our employee’s perception arising from

the eNPS (Employee Net Promoter Score).

2016 EMPLOYEE ASSESSMENTS

EMPLOYMENT CATEGORY BREAKDOWN

PERCENTAGE OF EMPLOYEES ASSESSED

TOTAL PAYROLL EMPLOYEES ASSESSED

LEADERS TEAMS REPRESENTATIVES

31


ONGOING EDUCATION

Aimed to allowing our employees to maximize their

performance, DIRECTV offers them the chance to

experience new challenges, in addition to providing

them with a broad range of business-aligned training

and skill-development opportunities.

Based on a variety of training programs, we support

our staff members so that they may discover and tap

their talent, excel themselves and manage their

careers. During 2016, we provided almost 60000 hours

of training to all our employees.

CATEGORY-BASED BREAKDOWN

HC HOURS AVERAGE

Employees’ training hours 930 59302 62,6

Leaders’ training hours 192 7712 41,4

Teams’ training hours 480 6566 47,0

Representatives’ training hs. 258 45024 174,5

Note: The above figures include temporary staff of DIRECTV partners’ who

collaborate with the business on a direct basis in the following areas: sales,

operations and administration.

Here are some of the skill development, training and

career management programs in place:

Corporate Training Path: it is intended to

support and reinforce employees’ knowledge about

DIRECTV since recruitment, as a means to seize

the organizational culture and to develop a

competence-based model and business-related

knowledge. Included in this category are initiatives

in the style of corporate induction, which is

addressed to all new recruits; or virtual courses to

provide all employees with further business-related

knowledge; VOC (the voice of the customer), an

on-site escorting program for newly hired

employees to experience real product sales or

installation situations; product training targeted to

all employees under the “Yo sumo” (I contribute)

and the “Passionate about service” workshop

intended to strengthen one of the company’s core

value pledges.

Targeted training: an external training process

aimed to strengthening the technical knowledge and

abilities required for each relevant position in specific

area-related issues. This program is only targeted to

employees requiring this type of training for their

specific task. To apply for this type of training,

employees should fill in a request form with a review

of the relevant conditions and have it duly approved

by their line managerand subsequently verified along

with the requesting area for budgeting and eventually

submitted with the Development Management for final

approval.

Leadership path: it is intended to consolidate the

Extraordinary Leader Model (ELM) on the basis of

competence-based training programs and aims to

getting team leaders to manage their teams in ways

that may boost their development and high-

performance results through collaboration, in order to

achieve better results and grow their career. The

Leadership Path consists of a range of modules

designed to reinforce technical knowledge and

abilities depending on each relevant position.

My Performance Plan: it stands as a

performance management process targeted to all

Company employees and conceived to align

individual goals with the Company priorities, goals

and success as a means to boost both individual and

organizational performance. The process fosters the

idea of employees’ continuous improvement and

development through the establishment of clear

targets and expectations, feedback-rich culture,

coaching, open dialogue, progress asessment and

acknowledgment.

Oustanding prospects: this program is

targeted to those employees whose outstanding

level of performance, commitment, amibition and

capacity evidence their chances of performing

successfully in a higher position within a shorter

time frame than other employees. Participants are

selected on the basis of the scheme defined by the

Company for this purpose and included in a

customized development plan.

32


Commercial training: this training program is

aimed to training commercial representatives in skill

development and product knowledge. Some

flagships in this category are the “Escuela Comercial”

(Commercial themes school) and the “Sendero del

conocimiento” (Path of Knowledge).

Outplacement: this is a career transition

support process for those employees whose

employment is terminated, either because of a

company decision or as a result of an internal

downsizing processs, and is applicable only to

employees terminated as a consequence of

restructuring issues. The transition process is led by

an external supplier.

CATEGORY PROGRAM MODALITY IH INTRODUCED IN 2016?

Corporate training path

VOC (Voice of the Customer) Program On-site 8 NO

Business indicators virtual course Virtual 1 NO

“Doing what’s right” virtual course Virtual 1 YES

Corporate induction program On-site 8 NO

“Passionate about service” workshop On-site 8 NO

Product-related training (Install your dish - Yo Sumo – I contribute) On-site 3 YES

Ethics-related virtual course Virtual 1 NO

Targeted training Targeted training On-site 170 NO

Leadership path

Experience days On-site 2 YES

“Push your team’s limits” talk On-site 2 YES

“Leading new generations” talk On-site 2 YES

“The power of a good start” talk On-site 2 YES

“Leadership basics” workshop On-site 5 NO

“Follow-up and feedback” workshop On-site 5 NO

“Leadership & coaching basics” workshop On-site 16 NO

“Change management 1” workshop On-site 4 NO

“Change management 2” workshop On-site 4 YES

“Staff management” workshop On-site 8 NO

Performance management My Performance Plan (virtual) workshop Virtual 1 YES

My Performance Plan (on-site) workshop On-site 2 YES

Outstanding prospects Premium Talent training On-site 20 YES

Commercial training

Corporate induction program (Commercial representatives) Mixed 72 NO

The path of knowledge On-site 4 YES

Commercial themes school (entry level) Mixed 20 NO

Product knowledge consolidation for old staff is included in the Commercial Training

category

On-site 4 NO

Outplacement Career transition support On-site 27 NO

11 new training programs were implemented during 2016.

33


We are in the thought that every company achievement

is even more significant when shared with those who

make it happen. Therefore, we remunerate our

employees on the basis of an equitable, competitive and

performance-aligned scheme as well as of an array of

benefits especially designed to meet their interests and

needs.

REMUNERATION POLICY

DIRECTV Colombia’s wage parameters are defined in

accordance with an established methodology: each

position is reviewed in terms of impact, knowledge and

ability, with a view to achieving the equality and

competitiveness defined on the company’s

compensation strategy.

On average, our wages are 146% higher than the minimum statutory one.

GENDER EQUALITY

DIRECTV Colombia fosters gender equality and thus

our gender-homogeneous workforce. The wage level

is defined on the basis of the weight of the position

and its related responsibilities, rather on the

employee’s gender.

In turn, administrative misconducts are notified by

means on warning notices that are attached to the

relevant employee’s file.

TOTAL NUMBER OF EMPLOYEES RATIO TO TOTAL

Vice-president and Senior Directors.

Women 5

Men 6

Directors and managers

Women 17

Hombres 23

Managers and heads of department

Women 56

Men 84

Analysts, Senior analysts

Women 182

Men 176

Sales representatives and CSR (Technical positions)

Women 176

Men 204

Grand total 930

2016 Minimum statutory

wage $689454

Men Women

Lowest base wages $ 1000000 $ 1020000

Ratio 145.0% 147.9%

BENEFITS AND FLEXIBILITY

34


FRINGE BENEFITS PLAN

DIRECTV Colombia offers its employees a diferential

fringe benefits package designed to cover several key

aspects for the employee: in addition to containing

purely monetary components, emotional rewards and

life-work quality are cherished. This benefits package

is in line with the company’s financial resources so as

to make it sustainable over time.

PLATINUM BENEFITS 1

Life insurance

DIRECTV pays 100% of the life insurance policy.

Medical disability derived from general disease2

DIRECTV acknowledges disability as of day four up to

180 days maximum, and pays the amount not

recognized by the social security system until taking

the disability monetary assistance up to 100% of the

base wage.

Prepaid medical assistance

program/Complementary Plan. DIRECTV offers

prepaid medical assistance or a complementary plan

to employees and their primary families in an amount

up to 50% of the monthly value (with a cap of 40% of

minimum statutory wage). Such assistance may be

requested at any of the healthcare centers the

Company operates with.

Optical assistance

DIRECTV helps employees acquire or repair

prescription eyeglasses through an assistance

program in the form of reimbursement paid along with

wages.

Funeral Service Insurance

DIRECTV bears 100% of the insurance in the event of

death of the employee or a member of their primary

family, in accordance with the insurance Company’s

parameters and conditions.

Extra-legal vacation bonus

Upon completion of the vacation period, DIRECTV

gives employees an extra-legal vacation bonus equal

to 15 monthly base wages days upon request, so that

theu may enjoy at least a 7-working-day vacation

during the relevant period.

Extra-legal Christmas bonus

DIRECTV gives employees an extra-legal Christmas

bonus equal to 15 monthly base wages days for a full

year of work or the number of days proportional to the

period of work, as long as their starting date may

have been prior to October 3 of the relevant year.

Marriage leave

DIRECTV grants 2 remunerated working days

mutually agreed upon by the employees and their line

managers for whose purpose the employee is to

submit a marriage certificate.

Quinquennium

DIRECTV awards its employees a special benefit in

the form of payment of days of wage every five years

of continuous employment with the Company.

DIRECTV signal

DIRECTV provides to the employee the installation of

a digital set-top box with one primary programming

signal and the monthly rental cost for free, in

accordance with the effective policy.

Education loans

DIRECTV awards educational loans according to a

semester- and educational level-based scheme, as

follows:

Undergraduate level courses:

Semester I to VI: 40% of the tuition fees per semester

*up to a maximum of 5 minimum statutory wages.

1. Platinum benefits apply to all employees on a direct, indefinite-duration

employment agreement with the company who may comply with the Company

conditions.

2. The medical disability derived from general disease applies to all

employees on a direct, indefinite-duration employment agreement with the

company provided that “whenever an employee may be disabled as a result

of a general disease lasting more than 3 days, as established by a

healthcare institution, the Company shall acknowledge disability as of day

four up to 180 days maximum, andshall pay the amount not recognized by the

social security system until taking the disability monetary assistance up to 100%

of the base wage.”. According to what provied on the Colombian legislation,

the Company is not bound to pay 100% of the wages in the event of disability

but only to 66% of such wage amount.

35


Semester VII to X: 50% of the tuition fees per

semester *up to a maximum of 5 minimum statutory

wages.

Diploma courses

50% of the tuition fees per semester *up to a

máximum of 4 minimum statutory wages

Graduate level courses:

50% of the tuition fees per semester, *up to a

máximum of 6 minimum statutory wages.

Scholarships for employees’ children

DIRECTV grants this benefit to outstanding

employees’ children of excelling academic

performance in the form of monetary education

support.

HD LIFE3

Flexible working hours

DIRECTV offers employees in administration areas 3

working hours options they may choose from in

coordination with their line managers, ensuring that

the operation may remain unaffected.

Flexible Fridays

DIRECTV offers employees in administration areas a

7am-3pm working day with a half-hour lunch time

they can use 2 Fridays a month.

Birthday off

DIRECTV gives employees a remunerated day off to

be agreed upon with their line managers and enjoyed

during the month of their birthday.

Vacation days

DIRECTV grants 2 additional vacation days per

employment year, thereby making up a 17-day

annual vacation period.

MAX PARTNERS

Corporate agreements

DIRECTV gives employees the chance to enjoy the

differential products and services offered by the

institutions they are partnered with.

3. HD LIFE stands as one of the components of the Company’s fringe

benefits package intended tofoster a family-work life balance that may

contribute to enhancing our employees’ quality of life.

36


DIRECTV Colombia features the following health-

related indicators:

Our employees’ quality of life erects as a priority to

DIRECTV and we are therefore very serious about all

occupational health and safety initiatives.

The Company is currently implementing the

Occupational Health and Safety Mangement System

pursuant to what required on Executive order no.

1072/2015, which provides for system planning

requirements, including the implementation of an

Occupational Health and Safety policy, which is

commitment on the side of the Company direction.

The human, technical and financial resources

required for the implementation of activities have

been allocated, while, in addition, a full-time

employee who collaborates with the Labor Risk

Insurer has been appointed the and a budget for the

execution of related activities has been earmarked.

OCCUPATIONAL HEALTH AND SAFETY

Indicator M W M W

Total number of employees, broken down by gender

494 436 586 493

Number of occupational accidents 17 6 11 10

Number of occupational diseases 0 1 0 2

Number of lost days 129 16 137 50

Number of death cases 0 0 0 0

Injury rate 3,44% 1,38% 1,88% 2,03%

Lost days rate 0,07% 0,01% 0,06% 0,03%

Occupational disease rate 0,00% 0,23% 0,00% 0,41%

Absenteeism rate Cases Days Cases Days

-25% -3% -1% -20%

37


The Colombian legislation requires the identification

and weighting of the quantitative and qualitative

risks linked to employees’ daily tasks, on the basis of

a specifically approved methodology. In turn,

DIRECTV Colombia uses ICONTEC’s (Colombian

Institute of Technical Standards) guidelines for the

purpose of this weighting. By means of a risk matrix,

those hazards that may lead to an occupational

accident or disease are identified on a process, task

or position basis.

Here are some of the most relevant risks:

Work-at-heights risks

Road-related risks (road accidents)

Biomechanical or ergonomic risks (postures,

recurrent movements, load handling)

Psychosocial risk (work and non-work factors that

may cause labor stress)

Nature-related risks (earthquakes, fires, floods,

among others)

In order to mitigate these risks, different activities are

in place, such as training, implementation of safety

and management procedures and mandatory use of

personal protection equipment. Three (3) Health

and Safety groups or committes have been

established, namely:

COPASST (Joint Occupational Health and Safety

Committee, entrusted with managing the

organization’s preventive activities)

Workplace Community Committee (entrusted with

reviewing alleged workplace harassment cases and

with defining actions to promote the concept of the

workplace as a community)

Emergency brigade (a group supporting primary

attention in the event of an emergency, such as

providing first aid or serving as evacuation leaders).

At the Bogotá headquarters medical attention and breast-feeding facilities are available.

05

WE INTEGRATE

The chain value

Our suppliers

Keys to a lasting relationship

Change leaders

39

WE INTEGRATE 2016 Sustainability report

Each link in our value chain is paramount to the

fulfillment of our mission: provide Colombian households

with the most outstanding entertainment offer.

THE CHAIN VALUE

SIGNAL

ENABLEMENT

IDENTIFY SALES PROSPECT

CLOSE SALE

TRANSACTION

CREATE WORK

ORDER

SALES ADMINISTRATION

SCHEDULING CLOSE ON-SITE

SERVICE

PROVIDE ON-SITE SERVICE

UPDATE SALES STATUS UPDATE WORK ORDER STATUS

40

WE INTEGRATE 2016 Sustainability reort

OUR SUPPLIERS

We aimed to forging robust, long-lasting ties with our

products’ and services’ suppliers, underpinned by the

values of honesty, integrity, fair treatment and

freedom of competition.

So far, procurement operations have been performed

in compliance with the local policy but, as of 2017, the

effective regional procurement policy shall serve as

basis for DIRECTV’s goods and services acquisition

processes.

The scope of procurement operations involves all tasks

related to the management and addition of goods’

and services’ suppliers, except for:

Commercial representatives and distributors

Utilities

Confidential services

SIM / SMART cards

Direct procurement operations

(STB, remote controls, antennas, etc.)

Content (programming)

All purchase orders and their related invoices undergo

an approval process based on AT&T’s and DIRECTV

LATAM / SKY Brazil’s Schemes of Authorization

(SOA) applicable to the employees based in each

country of the region1.

LOCAL SUPPLIERS FIRST

DIRECTV currently counts on a 1700 active

supplier base which, during 2016, accounted

for 96-million US dollar expenditure. Most non-

productive2 inputs purchase requests are

channeled through Head Office requesters3 to

supply the whole country, Expenditures related

to local suppliers and to major operation sites

amounted to 49000 US dollars4, most of them

classified as petty cash or authorization of

traveling expenses. In 2016, 99.9% of our

suppliers were local.

1 All purchases not reaching customers directly (Operation support services

required for service provision: STB transportation, sales force, security

service, cleaning, invoicing, among others).

2 Requesters: a group of staff entrusted with generating requests for quotation on

the in-house system in order to enable purchasing processes based on the

needs of each Vice-presidency.

3 Data provided by the Accounts payable area: petty cash or authorization of

traveling expenses.

4 Data provided by the Accounts payable area: petty cash or authorization of

traveling expenses.

41


To us, getting to know the people serving at DIRECTV on a

daily basis and forging a bond based on proximity and trust

is paramount.

Moreover, it is vital to ensure legal compliance on the side of

our suppliers, for whose purpose we conduct audits and

assessments of all employment-impactful legal processes on

an annual basis.

D

E

E

L

L

BREACHED THEIR COMMITMENTS AND THEIR

CONTRACTS WERE TERMINATED AT THE END

OF 2016 (52.5%)

Assessment criteria

Employment practices.

Occupational health and safety practices

Negative incidents (such as verbal, psychological or

physical abuse, in the form of coercion or harassment)

Employment relations

Wages and remuneratiOn

schemes

Working hours.

It is incumbent upon the Regional Office to qualify product

installation suppliers. The qualification process stands as a

stage of review of adherance to processes, positive

relationships, communication and priorities, strategy,

feedback and feedforward, as well as ethics.

In late 2016, 21 agreements with dealers were terminated as

a result of a so-called “Zonification” process executed by

DIRECTV Colombia Ltda, which led to the termination of the

contractual relationship on the basis of the following factors:

Adherance to processes

Expeditiously and timely implements new processes upon

the request of DIRECTV (for instance: MRV Audit, Test

benches, TST_OK, Incentives, etc.):

Decides on the need to change, inspire and encourage

working teams.

Provides a clear explanation of the benefits of change at

individual and team level.

Positive relationships

Is respectful, honest and treats internal and external

customers adequately.

Seeks a win-win scenario when interacting with customers,

peers, leaders, etc.

Behaves in ways that lead to preserving relationships,

even under tough circumstances.

Communication and priorities

Uses a cascading approach for communicating

organizational priorities.

Defines clear and challenging goals in line with the

organizational strategy.

Admits mistakes and proceeds to the required

adjustments.

Resorts to operational metrics in order to drive team

results up.

Strategy

Anticipates future challenges and opportunities and

amends plans accordingly (e.g.: Self-installable prepaid

service).

Removes any obstacles in order to ensure results

achievement.

Browses for new ideas inside and outside the

organization.

Actively seeks improvement opportunities to find better

ways to perform the work, by prioritizing the customer’s

interest and the organization goals.

Feedback and feedforward

Sets an enviroment that fosters learning and continuous

development in their teams (technical/structural).

Provides timely, constructive and action-oriented feedback

intended to contribute to increasing individuals’ and teams’

performance.

Raises talent level on a continuous basis, by measuring

performance and promoting accountability.

Uses two-way approach for communication between the

Company and the regional offices.

Ethics

Displays a high degree of integrity, honesty and fairness.

Erects into a Company value’s role model for others (e.g.:

fraud cases prevention and management).

KEYS TO A LASTING RELATIONSHIP

40

21

NEW AGREEMENTS EXECUTED WITH

DEALERS

42


Aware of our role in the development of the

country, we invest in the infrastructure required to

provide an enhanced service level.

DIRECTV Colombia operates on the basis of a

business model which involes inbound and outbound

logistics, marketing and sales, among other activities,

with positive indirect impacts on the economies of

communities across all of the country regions.

Internet as our main area of investment

In 2016, in the framework of the 4G LTE coverage

project designed to offer residential Internet services,

DIRECTV invested $6.6 million US dollars in

expanding its network, in particular to reach out to

areas with limited or no Internet access options,

thereby eventually allowing us to provide coverage to

547900 households.

And such investment was self-funded.

Both investment and coverage levels were increased

by 50% vis-a-vis the preceding period, given that

during 2015 and 2016 the Internet access networks

were built and optimized in order crowd in more

subscribers.

This stands as the flagship infrastructure investment

made by DIRECTV Colombia. Although satellites are our

main area of investment, in this case it is unrelated to the

local market. In addition, we have boosted the creation

of 7000 indirect jobs through 20 of our service trading

companies and distributors.

There are currently 3000 corporate customers using

our services and benefiting from the entertainment and

enjoyment our products bring. We operate with 1200

associate suppliers whose business relies on the

service they provide to us.

Our Internet network

expansion investment

amounted to: $6.6 million US

dollars and was self-funded.

CHANGE LEADERS

06

We share

DIRECTV Generation

44

WE SHARE 2016 Sustainability report

On the basis of our Social Responsibility strategy we

contribute to the most vulnerable communities or to

those most badly hit by the armed conflict. Some

ways of contribution involve the inclusion of

technology in education, the positive influence of our

programming and the high-impact volunteering

component.

The reintegration1 process is unlikely to succed if it

is to be under the umbrella of the State only.

Therefore, the engagement of the private sector in

endorsing initiatives leading to a successful and

sustainable reconciliation is paramount. Thus,

DIRECTV’s offer of Social Responsibility programs

made availble for the benefit of the country.

Our Social Responsibility programs involve people in

process of Reintegration (former combatants) who,

supported by employees, communities, foundations,

mass media, and the National and local governments

aim to rebuilding the social fabric in the areas affected

by the armed conflict, through actions tending to

transform schools, parks and sports facilities, among

others.

DIRECTV endorses ARN’s (Agency for

Reincorporation and Normalization) path of

Reintegration, through volunteering platforms, which

bring together individuals involved in the armed

conflict and support them in the development of their

abilities for social life. This program is expected to

help people in the process of Reintegration to believe

that realizing their life dreams within the law is

feasible.

AWARDS AND ACKNOWLEDGEMENTS:

Portafolio2 Awards:

Category: Corporate Social Responsibility

Colombian Agency for Reintegration: Category:

Corporate Social Responsibility innovation in

Colombia’s reconciliation process.

1The Reintegration process is a mechanism offered by the State to Armed

Groups demobilized individuals willing to become reintegrated into social and

economic life.

2 Honorable mention.

DIRECTV GENERARATION

Our programs are implemented across the 6 regions where DIRECTV Colombia operates.

45


INVESTING TO HEAL

An illustration of DIRECTV actions during 2016 is the

rebuiling of a sports facility and a public school in

Quibdó so that children and teenagers residing in the

area may benefi from education and sports. Luz Marina

Palacio, a victim of the armed conflict explains how she

felt in seeing the new court and school where he son

can attend: “it is a wonderful thing”, she said.

“Why Quibdó? Here we found an empowered

community willing to move forward. In addition, the

local government is well organized and in good terms

with the community and they were highly welcoming

with us regarding the implementation of this project”,

argued Luis Guillermo Hernández, DIRECTV’s Social

Responsibility department manager.

PROYECTOS DESARROLLADOS:

“Piedra, Papel, Tijera” Volunteering program

We introduced a high-impact volunteering program

involving the national and local governments, as well

as foundations, communities and individuals in the

reincorporation process, thereby sending out a

message of peace and reconciliation throughout the

country. We have transformed schools, parks and

sports facilities from disadvantaged communities or

those hit by the armed conflict.

3843 BENEFICIARIES

460 DIRECT

VOLUNTEERS

S DIRECTOS

+500 INDIRECT VOLUNTEERS

(COMMUNITY)

6 Projects:

3301 Hours

PARTNERS: COLOMBIAN AGENCY FOR

REINCORPORATION AND NORMALIZATION (ARN) AND

THE NATIONAL MINISTRY OF EDUCATION

$192150000 VOLUNTEERING HOURS IN PESOS

BENEFITED REGIONS: SOLEDAD - ATLÁNTICO; QUIBDÓ -

CHOCO; VEREDA LOS KILÓMETROS, LETICIA –

AMAZONAS; BOGOTÁ, TABIO Y CHÍA- CUNDINAMARCA;

RIOHACHA – GUAJIRA; DOS QUEBRADAS - RISARALDA;

CÚCUTA – NORTE DE SANTANDER; CALI - VALLE DEL

CAUCA; TURBO Y APARTADÓ – ANTIOQUIA; TUMACO –

NARIÑO; SANTA MARTA – MAGDALENA;

46


Escuela+

This is a Satellite TV project including educational

content intended to support teachers and students’

needs in over 2300 public schools located in rural and

extra-rural areas, as well as in peripheral urban

ones. It is aimed to contributing, supplementing and

enrichening educational content for primary and

secondary education schools on the basis of

DIRECTV’s geographically unlimited ESCUELA+

technology: through satellite technology it reaches out

to the farthest away corners of the Colombian

geography. In collaboration with the national

Government we can reduce the digital divide

between the urban and rural areas.

Content production partners: Discovery Channel,

Fundación Torneos, National Geographic and

Colombia’s National MInistry of Education.

Partners:

a) National Ministry of Education:

Cooperation Agreement no. 256 dated 2013 provides

for the Ministry of Education and DIRECTV to develop

the ESCUELA+ Program. This key partnership has

led to the following advancements between 2008 and

2016:

2332 public education institutions equipped with

ESCUELA+ throughout the country, at no cost ever for

the installation of the satellite antenna, the STB or the

supply of high-quality educational content and

pedagogical use guidelines.

Over 600000 students from public schools

have been benefitied by this program countrywide.

41 Bureaus of Education also benefited:

Amazonas, Antioquia, Apartadó, Armenia,

Barrancabermeja, Barranquilla, Bogotá, Bolívar,

Boyacá, Caldas, Cartagena, Cali, Cauca, Cesar,

Chía, Chocó, Córdoba, Cúcuta, Cundinamarca,

Dosquebradas, Duitama, Itagüí, Manizales, Medellín,

Meta, Montería, Nariño, Neiva, Palmira, Pasto,

Pereira, Putumayo, Quibdó, Riohacha, Risaralda,

Santa Marta, Soledad, Tumaco, Turbo, Valledupar,

Vichada and some special interventions in Nuquí (SE

Chocó) and Tabio (SE Cundinamarca).

b) Colombian Agency for Reintegration: ESCUELA+

benefits educational institutions located in areas

historically affected by the armed conflict and to

populations included in the Path of Reintegration4.

3For more information visit: http://escuelaplus.com/web 4 The Path of Reintegration is defined as a “set of conditions, benefits,

strategies, methodologies and actions established by the Agency for the

Normalization and Reincorporation of Armed Individuals and Groups, in

concert with the person involved in the reintegration process, in order to

help them develop skills, overcome vulnerability and exercise their

citizenship independently” (Resolution 1356 of 2016).

So far, 3900 teachers and principals were trained at no cost for the Ministry of Education.3

47


THE FORUM

By bringing together our TV channels and social

media, we provide opportunities for NGOs to publicize

their social and environmental initiatives. Our

technology helps to massively disseminate the work of

these organizations so that they reach out to millions

of people.

THE FORUM FIGURES

MEDIA:

On-air channels: Exhibition of the spot on

DIRECTV’s exclusive channels.

Social media: DIRECTV oficial accounts for Latin

America reach out to over 2 million fans.

EXHIBITIONS ON AIR TV

BENEFICIARY ORGANIZATIONS

522

7

08

We preserve

We are committed to the future

Efficient resource management

49

WE PRESERVE 2016 Sustainability report

WE ARE COMMITTED TO THE FUTURE

Engaging in sustainable management also entails

preserving the relevant resources, without

compromising the needs of the future generations.

Reducing energy comsumption, encouranging

efficient waste management and pushing these

values in our suppliers and agents are some of the

related concrete actions.

At DIRECTV, we endeavour for the benefit of

environmental sustainability, which, among other

things, means that we:

Boost reduced consumption of resources such

as energy, paper and water or those inputs which

may directly or indirectly affect the environment of

the population’s health.

Manage waste efficiently by fostering the

reduction, reuse and recycling of the waste

generated, particularly hazardous waste.

Encourage all our value chain to comply with these

environmental standards.

Although all of the company areas are invited to

contribute to environmental protection, those

making the bulk of contributions are: Marketing, with

outdoors visual advertising, and Supply Chain, based

on the retrieval of equipment units no longer used.

WASTE AND WASTEWATER

At DIRECTV, our goal is to adequately manage the

final disposition of industrial surplus material,

electronic waste and non-processable material

generated by our supply chain operation in order to

maximize their use and ensure an adequate

disposition of the waste we handle.

50


YEAR 2015 2016 2017

MONTH CONSUMPTION kwh

TOTAL VALUE CONSUMPTION kwh TOTAL VALUE CONSUMPTION kwh TOTAL VALUE

JANUARY 76.961 Kwh $31.199.141 78.839 Kwh $ 36.205.799 81.341 kwh $ 39.665.081

FEBRUARY 71.956 Kwh $29.105.800 75.084 Kwh $ 42.551.411 72.581 kwh $ 34.187.985

MARCH 69.453 Kwh $28.085.746 76.335 Kwh $ 36.763.348 73.207 kwh $35.059.254

APRIL 76.335 Kwh $31.577.164 64.447 Kwh $27.771.688 72.581 kwh $ 35.303.615

MAY 66.950 Kwh $27.038.825 70.704 Kwh $ 32.783.608 0 kwh $ 0

JUNE 76.335 Kwh $31.629.761 75.084 Kwh $ 35.100.368 0 kwh $ 0

JULY 76.335 Kwh $32.267.230 70.078 Kwh $ 32.214.915 0 kwh $ 0

AGOSTO 71.330 Kwh $29.536.369 71.330 Kwh $ 33.462.874 0 kwh $ 0

SEPTEMBER 73.207 Kwh $30.882.931 76.335 Kwh $ 36.400.692 0 kwh $ 0

OCTOBER 82.592 Kwh $35.648.651 75.084 Kwh $ 35.795.809 0 kwh $ 0

NOVEMBER 70.704 Kwh $31.049.906 73.833 Kwh $ 34.168.845 0 kwh $ 0

DECEMBER 75.084 Kwh $34.210.798 79.464 Kwh $ 37.656.303 0 kwh $ 0

TOTAL 887.243 Kwh $372.232.321 886.617 Kwh $ 420.875.660 299.710 Kwh $ 144.215.936

SAVINGS 13% -66%

YEAR IN KWH IN MONETARY

VALUE

2015 73.937 Kwh $ 31.019.360

2016 73.885 Kwh $ 35.072.972

2017 24.976 Kwh $ 12.017.995

Unrecoverable material, obsolete STBs and waste

collected during DIRECTV’s retrieval operation are

classified on a regular basis at the refurbishing and

logistics center. Next, the material is logistically

prepared for transportation to the recycling company.

After that, it is segregated and sent for an adequate,

environmentally-friendly final disposition tending to

achieving 100% reuse rate. DIRECTV makes an

income from the sale and adequate handling of its

waste.

RESPONSIBLE RESOURCE CONSUMPTION

We endeavor on a daily basis to achieve an ongoing

reduction in our resource consumption levels,

electricity included. To this effect, DIRECT Colombia

has implemented an electricity-saving policy to

encourage employees to turn lights off when not

necessary.

51


ELECTRONIC WASTE

In the understanding that our responsibility over the

products we trade remains even after they reach

households, we encourage the retrieval and recycling

of set-top boxes and their packaging material at the

end of their lifecycle.

For that purpose, we have in place a system to

retrieve post-paid equipment when customers

unsubscribe from the service or whenever we replace

it on the grounds of a technical failure or a

technological upgrade.The devices are examined by

own and outsourced laboratories which perform three

types of repair: (1) reuse, (2) aesthetic refurbishing

and (3) technical refurbishing. In those cases where

none of these options is applicable, the device is

disposed of.

EFFICIENT WASTE MANAGEMENT

OF ELECTRICAL AND ELECTRONIC DEVICES

WASTE

OF DEVICES (SD AND DVR&HD) REUSED

OF PRODUCTS AND PACKAGING RECYCLED

Total weight in grams 713702.10

DECODIFICADORES

REACONDICIONADOS1

RECYCLED SET-

TOP BOXES2

14%

Waste type 2016

Total (in Kg/tn) 870409

Waste electrical and electronic equipment

Technology Unit weight o Cantidad Peso total

SD 830 566427 470134410

DVR&HD 4.000 60892 243568000

92%

870409 tons

713702 kg

Total weight in kg 713702

870409

Refurbished set-top boxes: [(Reused set-top boxes) / (STBs delivered

on loan + STBs sold during the period)] x 100.

2 Recycled set-top boxes: [(Recycled set-top boxes) / (STBs delivered

on loan + STBs sold during the period)] x 100.

77%

09

EXHIBIT

53

EXHIBIT 2016 Sustainability report

2016 SUSTAINABILITY REPORT – TABLE OF CONTENTS

General report aspects Page/Response Ommission PDF page

Strategy and analysis G4.1 Statement by the organization’s top decision-maker about the relevance of sustainability for the organization. “Welcome letter from our CEO” section

N/A 5

G4.2 Description of main impacts, risks and opportunities

Organization profile

G4.3 Organization business name “We are committed” section - What is DIRECTV? N/A 7

G4.4 Main brands, products and services “We are committed” section - At the forefront of technology N/A 8

G4.5 Hadquarters’ location “We are committed” section - What is DIRECTV? N/A 7

G4.6 Number of countries where the organizatin operates and name of the countries where the largest operations or those relevant to this report sustainability issues are located.

“We are committed” section - What is DIRECTV? N/A 8

G4.7 Proprietary and legal status issues “We are committed” section - Our essence N/A 8

G4.8 Markets served (including breakdown of the geographical areas served and customer types) “We are committed” section - What is DIRECTV? N/A 8

G4.9 Organization scale, including:

- Headcount. - Total number of operations. - Net sales or income.

- Number of products or services offered.

“We are committed” section What is DIRECTV?

N/A 8

G4.10 Employment aspects:

- Total number of full employees and their gender. - Total number of employees per region and gender.

“We cooperate” section - Dyamism and diversity for the sake of growth” N/A 27-29

G4.12 Organization’s supply chain. “We integrate” section – The chain value N/A 40

G4.14 Description of the organization´s precautionary approach or principle. “We are committed” section - At the forefront of technology N/A 40 – 41

G4.15 Social, environmental and economic principles or programs developed externally, as well as other initiatives adhered to or endorsed by the organization.

As of 2016, DIRECTV Colombia endorses external initiatives in the field of education, reconciliation and peace through a partnership with the National Ministry of Education, the regional and local governments, the Colombian Agency for Reintegration (ACT) and National Businesses Asssociation (ANDI).

N/A GRI TABLE

54


General report aspects Page/Response Ommission PDF page

G4.16 Main memberships (such as indutrial associations) and/or national and international entities endorsed by the organization.

“We are sustainable – Involvement in Public Affairs” section N/A 19

Identification of material aspects and limits

G4.17 Entities included in the consolidated financial statements, along with reference to the fact that any of such entities may not be included in the sustainability report.

The entity listed on our financial statements is DIRECTV Colombia Limitada. N/A GRI table

G4.18 Account of the process to define the report content and related reporting aspects. “We are sustainable – Accountability and transparency” section N/A 4

G4.19 List of material aspects identified in the process of defining the report content. N/A 20

G4.20 Report if each material aspect is applicable across the organization. If not, indicate the aspects not considered material for any of the entities making up the organization.

N/A 20

G4.21 Report if each material aspect remains so outside the organization as well. N/A 20

G4.22 Description of the effect of preceding annual reports restated information, along with the grounds for reinstatement.

This information is not applicable as this is the initial sustainability report N/A N/A

G4.23 Substantial changes in scope, coverage or weighing methods applied to the report vis-a-vis preceding periods.

N/A N/A

Stakeholders groups

G4.24 List of stakeholders groups the organization liaisons with. “We are sustainable – Strengthening ties with our stakeholders groups” section N/A 16

G4.25 Report of the bases for the identification and selection of the stakehoders groups the organization liaisons with.

“We are sustainable – Strengthening ties with our stakeholders groups” section N/A 17

G4.26 Approaches employed in the dialogue with stakeholers groups, including frequency per stakeholder group. Indicate if any of the dialogue rounds occurred in the context of the report preparation process.

“We are sustainable – a 360o management” section N/A 17, 18

G4.27 Main concerns and interests arising from the rounds of talks with the stakeholders groups and inclusion of a response of the organization to those issues in the report. Report of the stakeholders groups and the issues they reported as relevant.

“We are sustainable – Strengthening ties with our stakeholders groups” section N/A 18

Report profile

G4.28 Period covered by the information contained in this report “Report parameters” section N/A 4

G4.29 Date of the immediately preceding report. N/A 4

G4.30 Reporting frequency (Annual-Biannual). N/A 4

G4.31 Point of contact for issues related to the report or its content. N/A 4

G4.32 Report of the option of “Conformance” to the organization’s selected GRI methodology (Core- Comprehensive). Report of the GRI table of contents.

N/A 4

G4.33 Report of the organization’s policy or approach to select an external auditing of the report. DIRECTV Colombia does have its report to be externally verified. N/A GRI table

Governance

G4.34 Organization governance structure, including description of the top governance body. Identification of any committees entrusted with supervising economic, social and environmental issues.

“We are committed – At the forefront of technology” section N/A 11

Ethics and integrity

G4.56 Description of the organizational values, principles, standards and rules of behavior, such as codes of conduct or codes of ethics.

“We are committed – Our essence” section N/A 9

55


Relevant issues/aspects Related GRI aspect GRI / Own indicators Ommission Page/Response PDF page

Quality and Customer Satisfaction Product labeling PR5. Results of customer satisfaction surveys N/A “We entertain – Product-related accountability and ethics” section

22

Corporate governance, ethics and transparency

Regulatory compliance (pr) PR9. Monetary value of substantial fines arising from breach of regulations related to products and services supply and use

N/A “We entertain – Product-related accountability and ethics” section

22-25

Regulatory compliance EN29. Monetary value of substantial fines and number of non-monetary sanctions arising from breach of environmental legislation and regulations


22-25

Struggle against corruption

SO3. Number and percentage of centers where corruption-related risks have been assessed and significant risks identified

The significant corruption-related risks identified during the assessments are not included in this report

“We are committed – business integrity and ethics” section

12

SO4. Anti-corruption policies and communication-training procedures No employment category or region information breakdown

is provided. “We are committed – business integrity and ethics” section

12 y 13

SO5. Confirmed cases of corruption and related measures adopted N/A “We are committed – business integrity and ethics” section

12

Unfair competition practices

SO7. Number of ligitation cases related to monopolistic or competition-restrictive practices and their outcomes


22

Mechanisms for claims over employment practices

LA16.Number of claims over employment practices brought, dealt with and settled through formal claim mechanisms

N/A “We are committed – business integrity and ethics” section

13

Technological innovation Not applicable No own indicator related to this isue is currently avaiable N/A N/A N/A

Diversity, inclusiveness and employability

Employment

LA1.Total number of contracts of employment and average staff turnover rate, by age group, gender and region

No gender or region information breakdown is provided. Turnover rate: 36.6%

“We cooperate - Dynamism and diversity for the sake of growth” section

27 y 28

LA2. Social benefits offered to full-time employees only, but not offered to temporary or part-time employees, by major operation site

Life insurance, Medical disability derived from general disease, Health insurance/Complementary program, Optical assistance, Funeral service insurance, Extra-legal vacation

bonus, Extra-legal Christmas bonus, Marriage leave,

Quinquennium, DIRECTV service package

“We cooperate - Benefits and flexibility”

section 34

LA3. Gender-based breakdown of the rate of return to work and retention following a parental leave

N/A “We cooperate - Dynamism and diversity for the sake of growth” section

29

Diversity- equal opportunities

LA12. Governance bodies composition and breakdown of payroll by professional category, gender, age, minority group, and other diversity indicators

There is no diversity indicators breakdown, as these are not managed by the organization.

“We cooperate - Dynamism and diversity for the sake of growth” section

11

No discrimination HR3. Number of discrimination cases and corrective measures adopted N/A “We are committed – business integrity and ethics” section

13

Male-female employees remuneration levels

LA13. Male-female employees base wage ratio, by major operation site There is no major operation site breakdown of

information

“We cooperate - Benefits and flexibility”

section 33

56



Talent management

Training and education

LA9. Breakdown of average annual training hours on a gender and employment category basis.

No gender-based information breakdown is provided. “We cooperate – continuous education” section

31

LA10. Skill management and continuous training programs fostering workforce employability and completion of undergraduate courses.

N/A “We cooperate – continuous education” section

31

LA11. Breakdown of employees percentage taking regular performance and profesional development tests, on a gender and employment category basis.

The gender-based breakdown is not available “We cooperate – continuous education” section

30

Investment HR2. Hours of workforce training on human rights policies and procedures related to their tasks, including percentage of staff members trained.

No training schemes on human rights related policies and procedures are available.

“We are committed – Business integrity and ethics” section

31

Market presence

EC5.Gender-based starting wage/minimum statutory local wage ratio in major operation sites.

Minimum local statutory wage: 689455 COP. We cooperate – Benefits and flexibility” section

33

EC6. Percentage of top executive directors from local communities in major operation sites

N/A “We are committed – Business integrity and ethics” section

11

Financial performance and related impact on Colombia

Indirect financial impacts EC7.Progress and impact of infrastructure investment and types of services N/A “We integrate – Change leaders” section 42

EC8. Significant indirect financial impacts and their effects N/A “We integrate – Change leaders” section 42

Financial performance EC4. Governmental grants awarded N/A “We are commmitted - DIRECTV Colombia section

8

Business-related environmental impact management

Waste and wastewater EN23. Total weight of waste managed, by type and treatment method N/A “We preserve – we are committed to the future” section

51

Energy

EN3. Internal energy consumption N/A “We preserve – we are committed to the future” section

55

EN4. External energy consumption This indicator is not managed. N/A N/A

EN6. Rate of energy consumption reduction N/A “We preserve – we are committed to the future” section

50

EN7. Reduced products’ and services’ energy requirements This indicator is not managed N/A N/A

Emissions

EN15. Direct greenhouse gases emissions (scope 1) N/A N/A

EN16. Indirect greenhouse gases emissions during the course of energy generation (scope 2)

This indicator is not managed N/A N/A

EN17. Other Indirect greenhouse gases emissions (scope 3) N/A N/A

EN19. Reduced greenhouse gases emissions N/A N/A

Social inclusivenes Not applicable DMA N/A “We share – DIRECTV generation” section 44

Information security Customers’ privacy PR8. Number of complaints related to breach of privacy and customers’ data leakage


23

Technological inclusiveness Not applicable DMA N/A “We share – DIRECTV generation” section 44

57



Information on products and services

Products’ and services’ labeling

PR3. Type of information required by the organization procedures regarding products’ and services’ data and labeling, and percentage of major products and services categories under such requirements


25

PR3. Number of breaches of regulations or voluntary codes related to products’ and services’ data and labeling, and breakdown of their outcomes


PR3. Results of customer satisfaction surveys “We entertain – Tracking satisfaction levels” – section

25

Marketing communications PR7. Number of breaches of regulations and voluntary codes related to marketing communications, such as advertising, promotions and sponsorship, among others, and breakdown of their outcomes


23

Products and services

EN27. Mitigation of products’ and services’ environmental impact This indicator is not managed N/A N/A

EN27. Percentage of products sold and their packaging material retrieved at the end of their lifecycle, by category

N/A “We preserve – we are committed to the future” section

49 - 51

Social investment programs Local communities SO1. Percentage of operations where development programs, impact assessment and local community involvement schemes have been put in place

N/A “We share – DIRECTV generation” section 45

Occupational health and safety Occupational health and safety

LA6. Type and rate of injuries, occupational diseases, lost days, absenteeism and work-related deaths, by region and gender

N/A “We cooperate – Occupational health and safety” section

36

LA7. Workers whose profession entail a high occupational disease risk or incidence

N/A “We cooperate – Occupational health and safety” section

37

LA8. Health and safety issues included in formal agreements with unions There are no unions operating at DIRECTV Colombia “We cooperate – Occupational health and safety” section

N/A

Chain value development

Asessment of suppliers’ employment practices

LA14. Percentage of new suppliers assessed for employment practices N/A “We integrate – keys to a lasting relationship” section

41

LA15. Significant, real and potential employment practices impacts on the supply chain and related measures

N/A “We integrate – keys to a lasting relationship” section

41

Asessment of suppliers’ environmental practices

EN32. Percentage of new suppliers assessed in terms of their environmental practices


EN33. Significant, real and potential environmental practices impacts on the

supply chain and related measures This indicator is not managed N/A N/A

Channels of communication with stakeholders groups


DMA “We are sustainable – Strengthening ties with our stakeholders groups”

15 -18



DMA N/A N/A N/A

Plural content Plural content DMA “We share – DIRECTV generation” section 45

Volunteering programs Procurement practices EC9. Percentage of major operation sites spending corresponding to local suppliers

The amount, rather the spending percentage, is reported. “We integrate – our suppliers” section 40

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Documents

from its original language. LEADING LEA D IN G LEADING · 2016 Sustainability report WHA IS DIRECTV? We stand as the largest satellite pay-TV operator worldwide, providing coverage