Sky Network Television Ltd · NZX:SKT

Sky Network Television — Shareholder Meeting (October 2017)

35 slides from Sky Network Television's shareholder meeting presentation, Oct 19, 2017

1. Slide 1: Sky Television Annual General Meeting 2017

   For personal use only SKY TELEVISION ANNUAL GENERAL MEETING 2017 |

2. Slide 2: The Evolving Sky Customer Base

   THE EVOLVING SKY CUSTOMER BASE For personal use only JUNE 2016 JUNE 2017 NET GAIN 852,679 824,782 (27,897) * Igloo service was closed on 31 March 2017 © SKY 2017 AGM Page 2

3. Slide 3: Moving Annual Churn

   For personal use only 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% © SKY 2017 AGM Jun-98 Nov-98 Apr-99 Sep-99 Feb-00 Jul-00 Dec-00 May-01 Oct-01 Mar-02 Aug-02 Jan-03 Jun-03 Nov-03 Apr-04 Sep-04 Feb-05 Jul-05 Dec-05 May-06 Oct-06 Mar-07 Aug-07 Jan-08 Jun-08 MOVING ANNUAL CHURN Nov-08 Apr-09

4. Slide 4: Moving Annual Churn

   MOVING ANNUAL CHURN For personal use only 18.50% 18.00% 17.50% 17.00% 16.50% 16.00% 15.50% 2016/17 15.00% 2017/18 14.50% 14.00% 13.50% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun © SKY 2017 AGM Page 4

5. Slide 5: Churn by Tenure

   CHURN BY TENURE 60.00% For personal use only 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2016 © SKY 2017 AGM Page 5

6. Slide 6: Sky Customer Segmentation Profiles

   SKY CUSTOMER SEGMENTATION PROFILES KIWI VIEWERS GET VALUE FROM VIEWING IN DIFFERENT WAYS For personal use only SOCIAL AVID ONLINE NEUTRAL FANATICAL HABITUAL MODERN OWLS LEARNERS ADDICTS COUPLES HEARTLANDER HEARTLANDER HOMEMAKERS

7. Slide 7: Servicing the Changing Face of the Sky Customer

   WHICH IS SERVICING THE CHANGING FACE OF THE SKY CUSTOMER For personal use only SKY CUSTOMERS NZ POPULATION* Fanatical and Habitual Heartlanders Online Addicts Neutral Couples Modern Homemakers Avid Learners Social Owls * SKY Internal customer research data © SKY 2017 AGM Page 7

8. Slide 8: Sky Box Customer Monthly Content Usage

   SKY BOX CUSTOMER MONTHLY CONTENT USAGE For personal use only 300 250 130m HOURS of 200 Live Viewing 150 100 143m HOURS Recorded to Planner 50 0 © SKY 2017 AGM Page 8

9. Slide 9: Connectivity on Sky Boxes

   60% CONNECTIVITY ON SKY BOXES 50% For personal use only 40% 30% 50% 20% 29% 10% 18% © Photosport.nz 0% Feb 2016 Aug 2016 Aug 2017 OLYMPICS 2016 | © SKY 2017 AGM Page 9

10. Slide 10: Sky IP Customer Monthly Content Usage

    SKY IP CUSTOMER MONTHLY CONTENT USAGE For personal use only Average requests per month 2016/17 SKY GO 1,157k Fan Pass 209k NEON 576k On Demand 512k 0 200 400 600 800 1000 1200 1400 On Demand NEON Fan Pass SKY GO July 2017 month requests SKY GO 795k Fan Pass 258k NEON 1,699k On Demand 775k 0 200 400

11. Slide 11: Peak People Using Televisions (PUTS) Trend

    PEAK PEOPLE USING TELEVISIONS (PUTS) TREND ALL 5+ For personal use only % 50 2015 2016 2017 45 40 35 30 25 20 15 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Peak Viewing 1800-2229 Calendar W

12. Slide 12: Sky Premium Products per Subscriber

    SKY PREMIUM PRODUCTS PER SUBSCRIBER For personal use only 3.93 3.81 3.72 © Offside Sports Photography LIONS 2017 | Page 12 © SKY 2017 AGM

13. Slide 13: ARPU from Sky Traditional Subscribers

    ARPU FROM SKY TRADITIONAL SUBSCRIBERS For personal use only $90.00 $85.00 $83.48 $81.67 $80.00 $79.54 $77.52 $75.83 $75.00 $70.00 $65.00 $60.00 $55.00 $50.00 2013 2014 2015 2016 2017 | © SKY 2017 AGM Page 13

14. Slide 14: Revenue

    REVENUE For personal use only Millions 950 927.5 928.2 909 900 893.5 885 850 800 750 700 650 2013 2014 2015 2016 2017 | © SKY 2017 AGM Page 14

15. Slide 15: Advertising Revenue

    ADVERTISING REVENUE For personal use only 80.0 Millions 70.0 60.0 24.7 27.3 24.3 21.4 26.4 50.0 40.0 30.0 49.3 46.7 41.6 43.2 45.2 20.0 10.0 - 2013 2014 2015 2016 2017 Sky Prime | © SKY 2017 AGM Page 15

16. Slide 16: Total Television Advertising Revenue

    For personal use only -10% 15% 10% -5% 0% 5% | Sep 10 Qtr Dec 10 Qtr Mar 11 Qtr (YOY QUARTERLY CHANGE) © SKY 2017 AGM Jun 11 Qtr Sep 11 Qtr Dec 11 Qtr Mar 12 Qtr Jun 12 Qtr Sept 12 Qtr Dec 12 Qtr Mar 13 Qtr Jun 13 Qtr Sept 13 Qtr Dec 13 Qtr Mar 14 Qtr Jun 14 Qtr Sept 14 Qtr Dec 14 Qtr Mar 15 Qtr Jun

17. Slide 17: Programming Costs % Revenue

    PROGRAMMING COSTS % REVENUE 50% For personal use only 45% 40% 35% 30% 25% 36% 39% 20% 15% 10% 5% 0% 2016 2017 © Photosport.nz | Page 17 © SKY 2017 AGM

18. Slide 18: Net Profit

    NET PROFIT 200.0 For personal use only Millions 150.0 100.0 147.1 116.3 50.0 - 2016 2017 © Photosport.nz -50.0 | Page 18 © SKY 2017 AGM

19. Slide 19: Cashflow

    180.0 CASHFLOW 170.0 For personal use only Millions 160.0 150.0 140.0 165.6 130.0 120.0 142.2 © Photosport.nz 110.0 100.0 2016 2017 | Page 19 © SKY 2017 AGM

20. Slide 20: Strategy and Trends

    For personal use only STRATEGY AND TRENDS | © SKY 2017 Annual Results 2017 Page 20

21. Slide 21: Sky's EPG

    For personal use only SKY’S EPG

22. Slide 22: Partnership with Vodafone

    PARTNERSHIP WITH VODAFONE For personal use only

23. Slide 23: The Continued Journey with Cisco

    THE CONTINUED JOURNEY WITH CISCO For personal use only Page 23

24. Slide 24: Partnership with TrustPower

    PARTNERSHIP WITH TRUSTPOWER For personal use only

25. Slide 25: Peak TV

    PEAK TV 600 For personal use only 534 500 455 421 400 389 349 300 268 200 100 0 2012 2013 2014 2015 2016 2017 © SKY 2017 AGM Page 25

26. Slide 26: The Best of Premium Drama

    THE BEST OF PREMIUM DRAMA For personal use only GAME OF BIG LITTLE WESTWORLD TABOO THRONES® LIES FARGO LEGION THE FEUD AMERICANS BILLIONS THE NIGHT GENIUS HOMELAND OF® DOCTOR RAY THE TWIN PEAKS WHO DONOVAN LEFTOVERS Page 26

27. Slide 27: A Busy Year on Sky Sports

    For personal use only A BUSY YEAR ON SKY SPORTS

28. Slide 28: Rugby League World Cup 2017

    RUGBY LEAGUE WERLD CUP 2017

29. Slide 29: End of Year Rugby Tour

    END OF YEAR RUGBY TOUR For personal use only INTERNATIONAL TESTS AND TEST MATCHES               © Photosport.nz           |

30. Slide 30: Winter Olympics February 2018

    WINTER OLYMPICS For personal use only FEBRUARY 2018

31. Slide 31: Renewed with Sky

    RENEWED WITH SKY For personal use only RENEWED WITH SKY

32. Slide 32: New to Sky

    NEW TO SKY For personal use only DC LEGENDS OF THE FLASH SHAMELESS TOMORROW ARROW SUPERGIRL SUPERNATURAL TM & © Cartoon Network (s15) . DC Series © and TM DC Comics © Warner Bros. Ent Inc. Shameless © Warner Bros. Entertainment Inc. Page 32

33. Slide 33: New to Sky

    For personal use only | NEW TO SKY

34. Slide 34: Our People

    For personal use only OUR PEOPLE | © SKY 2017 Annual Results 2017 Page 34

35. Slide 35: Sky Television Annual General Meeting 2017

    For personal use only SKY TELEVISION ANNUAL GENERAL MEETING 2017

Sky Network Television — Shareholder Meeting (October 2017) on 6ix