Sky Network Television Ltd · NZX:SKT

Sky Network Television — Shareholder Meeting (October 2013)

37 slides from Sky Network Television's shareholder meeting presentation, Oct 24, 2013

  1. Slide 1: SKY 2013 AGM Chairman's Address

    SKY 2013 AGM For personal use only Chairman’s Address October 2013

  2. Slide 2: Chairman's address: year of change

    This past financial year has been one of considerable change for SKY. We saw the sell down of major shareholders News Corp and Todd Corporation. I would like to stress that we do not expect the departure to affect any commercial relationships with News. SKY has worked closely with News’ associates s

  3. Slide 3: Chairman's address: brand, community, record earnings

    like delivering our content to tablets and mobile devices. Our new board members, Geraldine McBride and Derek Handley bring exciting skills at board level in the areas of technology, customer relationships, marketing and entrepreneurial skills in the new digital world. For personal use only This yea

  4. Slide 4: Chairman's address: programming and EPL rights

    announced they are the broadcast rights holder for the forthcoming Winter and Summer Olympics for both free to air and pay television coverage. In other programming developments The Jones! channel was launched in May this year and has quickly risen to one off the top five rating channels. Prime For

  5. Slide 5: Board and management commitment

    Your board and management are committed to building shareholder value and ensuring the future growth of SKY. Your board and management are also committed to maintaining a strong balance sheet while continuing to review capital management. For personal use only On behalf of the board I thank all our

  6. Slide 6: Sky Television Annual General Meeting 2013

    For personal use only SKY TELEVISION ANNUAL GENERAL MEETING 2013 |

  7. Slide 7: The SKY journey so far

    THE SKY JOURNEY SO FAR For personal use only UHF Std SKY Wholesale SKY MY SKY Other |

  8. Slide 8: The year end position

    THE YEAR END POSITION For personal use only June 2012 June 2013 % Change DBS (Satellite) Domestic 307.8 234.6 -23.8% DBS MY SKY 382.5 456.4 19.3% DBS Wholesale 129.3 131.6 1.7% Commercial & Other 27.3 33.4 22.2% TOTAL SUBSCRIBERS 846.9 855.9 1.1% |

  9. Slide 9: Net gain by month

    NET GAIN BY MONTH For personal use only 30 Thousands 25 20 2008 2009 15 2010 10 2011 2012 5 2013 0 5 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun |

  10. Slide 10: Prospects to subscribe

    PROSPECTS TO SUBSCRIBE For personal use only I am mildly interested I am quite interested in in getting SKY/Igloo getting SKY/Igloo 14% 5% 2% 2% 2% 3% 3% 3% 3% 1% 2010 2011 2012 2013 2010 2011 2012 2013 I am very interested in getting SKY/Igloo 2% 1% 1% 1% 1% 2010 2011 2012 2013 |

  11. Slide 11: SKYWATCH

    For personal use only | SKYWATCH

  12. Slide 12: SKY premium products

    SKY PREMIUM PRODUCTS HD Access Ticket For personal use only 2.75 Millions 2.7 2.65 2.6 2.55 2.5 2.45 2011 2012 2013 |

  13. Slide 13: MY SKY

    MY SKY For personal use only Jun 12 Jun 13 % Churn 10.4% 11.4% HDi Subs 367,536 442,940 HD Access Ticket 200000 % Multiroom 31% 29% 180000 160000 140000 % HD Ticket 15% 15% 120000 100000 80000 % Upfront 6% 5.6% 60000 40000 20000 0 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 |

  14. Slide 14: Total ARPU

    TOTAL ARPU For personal use only $80.00 $75.83 $75.00 $71.93 $70.45 $70.00 $67.61 $65.00 $64.00 $62.10 $60.00 $55.00 $50.00 2008 2009 2010 2011 2012 2013 |

  15. Slide 15: Moving annual churn

    For personal use only 0% 5% 10% 15% 25% 35% 20% 30% Jun-98 | Dec-98 Jun-99 Dec-99 Jun-00 Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 MOVING ANNUAL CHURN Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13

  16. Slide 16: Churn

    CHURN MONTHLY DEVICE For personal use only 1.50% 1.8% 1.40% 1.6% 1.30% 1.4% 1.20% 1.2% 1.10% 1.0% 1.00% 0.8% 0.90% 0.6% 0.80% 0.4% 0.70% 0.2% 0.60% 0.50% 0.0% May Aug Sep Mar Apr Oct Nov Dec Jan Jun Feb Jul Sep Mar Nov May Jan Jun Aug Feb Jul Apr Oct Dec 2011 2012 2013 MY SKY SKY |

  17. Slide 17: Revenue

    REVENUE For personal use only Millions 1000 885 900 843 797 800 742 692 700 659 619 600 500 400 300 200 100 0 2007 2008 2009 2010 2011 2012 2013 |

  18. Slide 18: Advertising revenue

    ADVERTISING REVENUE For personal use only Millions 80.0 70.0 60.0 23.3 26.4 23.0 26.5 50.0 23.7 21.8 20.8 40.0 30.0 20.0 41.0 40.0 43.9 41.6 35.9 39.0 32.9 10.0 - 2007 2008 2009 2010 2011 2012 2013 SKY PRIME |

  19. Slide 19: Total television advertising revenue

    For personal use only -20.00% -15.00% -10.00% -5.00% 0.00% 5.00% 10.00% 15.00% 4% Jun 08 Qtr -2% Sep 08 Qtr | -7% Dec 08 Qtr Mar 09 Qtr -10% Jun 09 Qtr -16% Sep 09 Qtr -18% -4% Dec 09 Qtr 3% Mar 10 Qtr 8% Jun 10 Qtr 11% Sep 10 Qtr 4% Dec 10 Qtr -1% Mar 11 Qtr 5% Jun 11 Qtr 2% Sep 11 Qtr 1% Dec 11 Qt

  20. Slide 20: Programming costs % revenue

    PROGRAMING COSTS % REVENUE For personal use only 32% 33% 30% 33% 33% 33% 32% 32% 32% 28% 26% 24% 22% 20% 2007 2008 2009 2010 2011 2012 2013 |

  21. Slide 21: EBITDA

    EBITDA For personal use only Millions 400.0 353.1 350.0 336.0 321.7 300.0 287.5 266.6 261.0 249.4 250.0 200.0 150.0 100.0 50.0 - 2007 2008 2009 2010 2011 2012 2013 |

  22. Slide 22: Net profit

    NET PROFIT For personal use only Millions 160.0 137.2 140.0 120.3 123.7 120.0 103.0 97.7 100.0 88.1 77.9 80.0 60.0 40.0 20.0 - 2007 2008 2009 2010 2011 2012 2013 |

  23. Slide 23: Capital expense analysis

    CAPITAL EXPENSE ANALYSIS For personal use only 2012 2013 % Change Install 48.9 40.2 -8.7% Decoders 57.4 22.9 -60.1% Building Improvements 0.9 1.4 55.6% OSB Truck 2.6 0 -100% Igloo 12.3 2.6 -78.9% Other 14.8 15.3 3.4% TOTAL CAPITAL EXPENSE 136.9 82.4 -39.8% |

  24. Slide 24: Operating cashflow

    OPERATING CASHFLOW For personal use only 2012 2013 % Change Operating Cashflow 272.1 290.6 6.8% Capex -136.0 -82.3 -39.5% Net debt drawn 58.0 14.0 -75.9% Dividends -185.5 -225.1 21.3% Capital Introduced 12.3 0 -100% Other -4.4 -4.4 0.0% NET CASH MOVEMENT 16.5 -7.2 -143.6% |

  25. Slide 25: Funding profile

    FUNDING PROFILE For personal use only FACILITY DRAWN MARGIN MATURITY Bank Debt $400m $272m 180bp Jul 2018 Bond $200m $200m 65bp Oct 2016 |

  26. Slide 26: Dividend

    DIVIDEND For personal use only The Board has paid a fully imputed final dividend of 12.0 cps ($46.7m) in September 2013. 2013 2012 2011 2010 2009 2008 Interim 12.0 11.0 8.0 7.0 7.0 7.0 Final 12.0 11.0 10.5 7.0 7.0 7.0 Ordinary 24.0 22.0 18.5 14.0 14.0 14.0 Total Special 0 32.0 25.0 0 0 0 TOTAL 24.0

  27. Slide 27: Commerce Commission

    For personal use only COMMERCE COMMISSION

  28. Slide 28: For personal use only

    For personal use only

  29. Slide 29: SKY Movies Family pop-up channel

    > MOVIES THE MUPPETS ALVIN THE CHI CHIPWRI Sunday 29" -7pm SPY KIDS 4 1ed spy called back Monday 30% -7pm AND IN OCTOBER: Madagascar 3: Europe's Most Wanted ‘Sunday 13* October ~7pm Plus: lee Age 4: Continental Drift. Happy Feet 2 Frankenwoenie, Puss in Boots & more! POP-UP PARTY FOR KIDS! ‘School h

  30. Slide 30: For personal use only

    For personal use only

  31. Slide 31: For personal use only

    For personal use only

  32. Slide 32: For personal use only

    For personal use only

  33. Slide 33: On Demand movies

    WwW On Demand Movies All The Bourne Legacy (m) An original story that introduces us to a new hero whose life-or-death stakes have been triggered by the events of the first three films. The Lord of the Scott Pilgrim vs the | The Avengers The Bourne Legacy [IVETerteEKe-TacH Rings: The Return of | Worl

  34. Slide 34: Guidance

    GUIDANCE For personal use only Analysts’ have the following mean FY14 forecasts for SKY: $m Analysts’ MEAN SKY FY14 Forecast $m Revenue 916 890 - 900 EBITDA 366 355 - 360 Depreciation 117 115 - 120 NPAT 156 145 - 155 CAPEX 110 100 - 120 000’s Subscribers SKY 8.6 10 IGLOO 13.7 20 |

  35. Slide 35: Digital switchover net gain

    DIGITAL SWITCHOVER NET GAIN SOUTH ISLAND (EXCLUDING WEST COAST) – NET GAIN For personal use only 1500 1000 500 0 Jan Feb Mar Apr May -500 2011 2012 -1000 2013 DSO -1500 Net Gain in the ‘Rest of the South Island’ showed an improvement on previous years prior and post the switchover |

  36. Slide 36: Digital switchover multiroom

    DIGITAL SWITCHOVER MULTIROOM THE SOUTH ISLAND (EXCLUDING WESTCOAST) – MULTIROOM For personal use only 300 250 200 150 2011 100 2012 50 2013 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DSO We have seen strong Multiroom growth leading up to the Digital Switchover The ‘Rest of the South Island’ h

  37. Slide 37: Sky Television Annual General Meeting 2013

    For personal use only SKY TELEVISION ANNUAL GENERAL MEETING 2013 |

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