Sky Network Television Ltd · NZX:SKT
Sky Network Television — Shareholder Meeting (November 2023)
44 slides from Sky Network Television's shareholder meeting presentation, Nov 8, 2023
Slide 1: Sky ASM Chairman's and Chief Executive's Address and Presentation
Sky New Zealand PO Box 9059 Newmarket Auckland 1149 New Zealand 10 Panorama Road Mt Wellington Auckland 1060 New Zealand T. +64 9 579 9999 sky.co.nz 8 November 2023 Sky ASM Chairman’s and Chief Executive’s Address and Presentation The 2023 Annual Meeting of Shareholders of Sky Network Television Lim
Slide 2: Chairman's Address
Sky Annual Mee�ng 2023 Chairman’s Address Good morning fellow shareholders. I am Philip Bowman, and it is my pleasure, as Chairman, to welcome you to Sky’s Annual Mee�ng for 2023. My remarks this morning will begin by commen�ng briefly on Sky’s market announcement regarding receipt of a non-binding i
Slide 3: Chairman's Address: balance sheet, returns and share price
We finished the period with a strong balance sheet posi�on of $56m in cash on hand and no debt. And this was a�er returning the substan�al sum of $91 million to shareholders by way of a $70 million capital return and $21 million paid out in fully imputed dividends. Addi�onally, $4.5 million of capita
Slide 4: Chairman's Address: competition and streaming landscape
From a local compe��on standpoint, we’ve seen a significant shi� in the landscape over the past 12 months, with the exit of Spark Sport demonstra�ng the challenges facing new entrants to the New Zealand sports streaming market. It has also highlighted the real economic value of sports rights in a mar
Slide 5: FY24 Guidance and dividend outlook
Taking all this into account, our FY24 Guidance reflects the Board’s confidence in the Sky team’s ability to grow revenue and control costs. This confidence extends to the increased capex investment that we are making to accelerate the roll out of the new Sky Box and Sky Pod products. As I said at the
Slide 6: Chairman's closing remarks and thanks
discussions. You will have an opportunity to hear from Belinda later in the mee�ng as she seeks your support to confirm her appointment to the Board. To my Board colleagues, thank you for your commitment of �me, your construc�ve challenge to management, and above all your focus on genera�ng value for
Slide 7: Chief Executive's Address
Sky Annual Meeting Address 2023 Chief Executive’s Address Thank you, Philip and tēnā tātou katoa. It’s my privilege to present to you today in my third year as your Chief Executive. I’ll begin with our key performance highlights for FY23 and the achievements of the last three years. I’ll then walk y
Slide 8: Customer growth and revenue performance
These increased customer numbers, combined with recent price rises, have delivered a 50% increase in Sky Sport Now revenue and a 19% rise for Neon. Sky Broadband also delivered a steady performance in FY23, growing to 26,000 customers nationwide, and offering additional value for our Sky Box subscri
Slide 9: Technology partnership and community contribution
Changes to the way we access technology capability through our international partner TCS, is also having a positive impact. The relationship enables access to specialist capability and capacity in key areas of technology and content operations in a more efficient and cost-effective way. Again, the c
Slide 10: Three-year achievements
• We successfully launched Sky Broadband in 2021 and much more recently we have reinvigorated our Free to Air offering through the launch of Sky Open. • At the same time, we have reshaped the business to align our organisational design with our strategic priorities and progressed key initiatives to
Slide 11: Ambition and strategic pathways
- We deeply engage our customers. They are fans of the game and of the story, and we fuel their fandom. We are not like a news site or just a social media feed – our customers come to be deeply engaged; enthralled – choosing to give us their full attention. - Our platforms and our content are essent
Slide 12: Three-year targets and dividend doubling
We are well positioned to reduce programming costs as a percentage of revenue, given our strategic investments to date. By FY26 we are targeting for this to be within 47% to 49% of revenue. We value what our customers value and have deep insights into what really matters to them. We know we don’t ne
Slide 13: Annual Meeting, November 2023
For personal use only 8 November 2023 © SKY 2023
Slide 14: Board and leadership
if Philip Bowman Sophie Moloney Keith Smith Joan Withers Independent Chair Chief Executive Independent Deputy Chair Independent Director am For personal use only Mike Darcey Mark Buckman Belinda Rowe James Marsh Kirstin Jones Independent Director Independent Director Independent Director Interim CFO
Slide 15: Agenda
Agenda Chairman's Address Chief Executive's Address Formal Business - resolutions For personal use only vvv iv General Business - shareholder questions
Slide 16: Chairman's Address
Chairman's sky Address
Slide 17: FY23 at a Glance
FY23 at a Glance CUSTOMER RELATIONSHIPS REVENUE EBITDA . 1,015,125 $754m $149m 5 FY22: 990,761 Adjusted! $753m Adjusted’ $156m 2 FY22: $736m FY22: Adjusted $154m 5 g ® NET PROFIT AFTER TAX FULL YEAR DIVIDEND RETURNED TO INVESTORS o foe = 51m 15cps $91m * Adjusted! $57m 89% of Adjusted FY22 NIL FY22
Slide 18: Total Shareholder Returns
Total Shareholder Returns Ranked 6* Ranked 2"¢ on TSR in NZX50 on TSR in NZX50 +45.1% m Sky = NZX 50 For personal use only -13.1% 1 year 2 years to 12 Oct 2023 to 12 Oct 2023
Slide 19: Recent trends net-positive for Sky
Recent trends net-positive for Sky Demonstrating resilience in a challenging economic climate Well positioned within the media sector Benefitting from reduced local competition Confident in multi-product, content aggregator strategy vvvv vv For personal use only Significantly improved rights negotia
Slide 20: FY24 Guidance unchanged
FY24 Guidance unchanged sm FY24 Guidance! Revenue 765 - 795 EBITDA 150 - 165 NPAT 45-55 Capex? 75-90 Dividend? at least 15.0 cps For personal use only 1 Subject tono adverse change in operating conditions, including future economic headwinds. 2. Capex guidance excludes one-off capital expenditure re
Slide 21: Q1 Update: Firmly on track
2 cS 5 o n =) [s) cS [e} n 2 o [os . i) uw Q1 Update: Firmly on track > > A positive start to FY24 sees Sky firmly on track to deliver FY24 guidance Total customer relationships increasing, driven by growth in sports streaming Strong sports line-up delivering increased sport penetration on Sky Box a
Slide 22: Chief Executive's Address
sky Chief Executive's Address
Slide 23: For personal use only
For personal use only 1 Source: Nielsen TAM, AP5+ reach 2 Source: Sky Internal Data
Slide 24: FY23 Performance
FY23 Performance CUSTOMER RELATIONSHIPS REVENUE REVENUE +2.5% +2.4% +4.5% > 5 like-for-like basis! o 8 £ EBITDA NET PROFIT AFTER TAX DIVIDEND a 8 ro) ce) ce) 5 +1.8% +15.2% +105% Adjusted? Adjusted? Reported W 12% Reported V 18% 1. Removing the impact of Vodafone TV platform fees and RugbyPass reven
Slide 25: Delivering customer & revenue growth
Delivering customer & revenue growth CUSTOMER RELATIONSHIPS REVENUE Sky Sport Now Sky Box & Pod Total Streaming +11%! Sky Box & Pod 437% 2.7% Sky Sport Now +50% -0.8% 2 5 Neon +19% ° 28% Broadband 8 migration) +123% @ Commercial 5 +13% ¢ 1,015,125 Advertising ° +9%2 vg Other -20%3 Commercial Sky Bro
Slide 26: New Sky Box and Sky Pod launched
New Sky Box and Sky Pod launched 35,000 new Sky Boxes ufo 13,000 new Sky Pods in use by FY23
Slide 27: Customer care improvements
Customer care improvements 40% increased capacity 3 x faster response times
Slide 28: Making a positive contribution
Making a positive contribution 40,000 Sky Boxes recycled at end of use 108,900kg of waste diverted from landfill SEE YOUR POSSIBLE Certified FY23 emissions (tCO,e) Scope 1: 136 —_ TOITU Scope 2: 1,007 f CARBO cs Scope 3: 10,338 © 14064-1 ORGANISATION
Slide 29: Sky is in a strong position for growth
Sky is in a strong position for growth i g5° \AZ = Over 1 million Unrivalled Unmatched & Strengthened ra customer relationships content enhanced products Leadership/Operations {o) . - o High tenure/high ARPU Sky Box, Key targeted content secured Multi-product strategy Organisational design 77) #1 sp
Slide 30: Our Purpose
OUR PURPOSE Share stories. Share possibilities. Share joy. For personal use only
Slide 31: Our Purpose and Ambition
OUR PURPOSE Share stories. Share possibilities. Share joy. OUR AMBITION Aotearoa NZ's most engaging and essential media company. For personal use only
Slide 32: Strategic Pathways
STRATEGIC PATHWAYS Making Sky Giving Meeting Giving Providing a great customers customers customers innovative where the experience solutions for our — 2 i they are they expect partners & clients For personal use only OUR ENDURING COMMITMENT A responsible and sustainably profitable, Aotearoa-focused
Slide 33: FY24 priorities
1. Lift employee engagement 2. Rollout new Sky experience 3. New revenue streams For personal use only
Slide 34: 3-year Targets (to FY26)
> Cc fo) co) wn =) @ Cc fo) y ® om fo) uw 3-year Targets (to FY26) Revenue growth EBITDA Margin +3% - 4% p.a. 21% - 23% Capex returned to Employee engagement 7% - 9% of revenue +14pts Programming 47% - 49% of revenue Customer NPS +19pts Double the FY23 dividend!
Slide 35: Unmatched content
Unmatched content ee A ‘ 4 oj ¢ 4, ’ ne 2025 FIA FORMULA ONE WORLD CHANIPIONSHIP™
Slide 36: For personal use only
For personal use only ©Red Planet (DIP) Ltd
Slide 37: For personal use only
For personal use only
Slide 38: Resolution: auditor's remuneration
Resolution 1 > That the Board be authorised to fix the auditor's remuneration for the ensuing year. For personal use only |
Slide 39: Resolution: re-election of Keith Smith
Resolution 2 > That Keith Smith, who retires at the Annual Meeting and is eligible for re-election, be re-elected asa director of the Company. For personal use only
Slide 40: Resolution: re-election of Mike Darcey
Resolution 3 > That Mike Darcey, who retires at the Annual Meeting and is eligible for re-election, be re-elected asa director of the Company. For personal use only
Slide 41: Resolution: re-election of Belinda Rowe
Resolution 4 > That Belinda Rowe, who was appointed by the Board on 1 March 2023 and retires at the Annual Meeting, be re-elected as For personal use only a director of the Company.
Slide 42: For personal use only
For personal use only
Slide 43: For personal use only
For personal use only
Slide 44: Disclaimer
For personal use only Disclaimer This presentation has been prepared by Sky Network Television Limited and its group of companies (“the Company") for informational purposes. This disclaimer applies to this document and the verbal or written comments of any person presenting it. Information in this p
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