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INVESTOR DAY 2015

26 May 2015

DISCLAIMER

THIS PRESENTATION CONTAINS STATEMENTS THAT REVIEW

CURRENT BUSINESS OPERATIONS. MEDIA RELEASES AND

MANAGEMENT COMMENTARY, INCLUDING THOSE RELATING

TO THE 2015 HALF YEAR RESULTS ANNOUNCEMENT, ARE ALL

AVAILABLE ON SKY’S WEBSITE. PLEASE READ THIS

PRESENTATION IN THE WIDER CONTEXT OF MATERIAL

PREVIOUSLY PUBLISHED BY SKY.

CEO’S INTRODUCTION

JOHN FELLETCHIEF EXECUTIVE OFFICERFANATICAL ABOUT BASEBALL

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AGENDA

1. CEO’S INTRODUCTION

2. CUSTOMER PERSPECTIVE

3. STRATEGY AND PRODUCT ROADMAP

4. ENTERTAINMENT CONTENT

5. SPORT CONTENT

6. ADVERTISING SALES

7. GOVERNMENT RELATIONS

8. GEARING AND DIVIDENDS

9. Q & A

26 May 2015 4SKY Investor Day 2015

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THE IMPACT OF THE INTERNET

26 May 2015 SKY Investor Day 2015 Page 5

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CONTENT MONETISATION ENGINE

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WE ARE QUICKLY REALISING IT’S TWO MARKETS FOR PAID CONTENT

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Premium Pay TVStandalone OTT services

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NOW TV

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26 May 2015 SKY Investor Day 2015 Page 8

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CONTENT COSTS

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PRICINGOUR RECENT PRICE INCREASE

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WATCHING BRIEF ON ALTERNATE PRICING MODELS

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26 May 2015 SKY Investor Day 2015 Page 10

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KEY DEVELOPMENTS AND INTENTIONS

• Extend partnership with Vodafone to offer broadband through SKY

• Exploring the option to provide NEON to customers with both SKY Movie & SoHo subscriptions, at no additional cost

• Plan to enhance FAN PASS to include SKY SPORT linear channels

26 May 2015 SKY Investor Day 2015 Page 11

CUSTOMER PERSPECTIVE

MICHAEL WATSONDIRECTOR OF MARKETINGFANATICAL ABOUT MAD MEN!

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WHAT THE VIEWER WANTS

26 May 2015 SKY Investor Day 2015 Page 13

UNDERSTANDING WHAT VIEWERS WANT

& WHY, IS UNDERSTANDING VALUE

UNDERSTANDING VALUE UNLOCKS

THE POTENTIAL TO PROFIT FROM CHANGE

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HUMAN NEEDS

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DESIRES & EXPECTATIONS

26 May 2015 SKY Investor Day 2015 Page 15

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INFLUENCES

26 May 2015 SKY Investor Day 2015 Page 16

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OUTCOMES

26 May 2015 SKY Investor Day 2015 Page 17

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SO WHAT?

26 May 2015 SKY Investor Day 2015 Page 18

STRATEGY AND PRODUCTS

MATTHEW ORANGEDIRECTOR OF STRATEGY AND PRODUCTSFANATICAL ABOUT TRAIL RUNNING

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INVESTING ACROSS MULTIPLE HORIZONS

26 May 2015 SKY Investor Day 2015

Page 20

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CORE – PRODUCT PIPELINE

26 May 2015 SKY Investor Day 2015

Page 21

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ADJACENT – PRODUCT PIPELINE

26 May 2015 SKY Investor Day 2015

Page 22

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ENTERTAINMENT

TRAVIS DUNBARDIRECTOR OF ENTERTAINMENT (NON-SPORTS CONTENT)FANATICAL ABOUT CONNOR MCGREGOR

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SKY HAS A BROAD ENTERTAINMENT MIX

OTTOWNED + OPERATED AFFILIATE

26 May 2015 SKY Investor Day 2015 Page 24

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PREMIUM AND EXCLUSIVE CONTENT SUPPLY IS AS CRUCIAL AS EVER!

26 May 2015 SKY Investor Day 2015 Page 25

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PREMIUM AND EXCLUSIVE CONTENT SUPPLY IS AS CRUCIAL AS EVER!

THE BIGGEST AND THE BEST

26 May 2015 SKY Investor Day 2015 Page 26

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CONSISTENT OUTPUT/MULTIPLE RIGHTS

A CONSISTENT PIPELINE OF THE BEST

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MULTIPLE RIGHTS OVER MANY PLATFORMS

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26 May 2015 SKY Investor Day 2015 Page 27

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CONSISTENT OUTPUT/MULTIPLE RIGHTS

MOST CONTENT COMES WITH MEANINGFUL

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LINEAR SUPPORTS OTT

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• Linear and OTT Programming teams integrated in 2015

GIVES US FUEL FOR OUR UNIQUE CONTENT AMORTISATION ENGINE26 May 2015 SKY Investor Day 2015 Page 28

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THE MOVIE TIER EXPANSION

The Hunger Games. TM &© 2012 Lions Gate Entertainment Inc.

All Rights Reserved.

Frozen ©Disney. Available on SKY Movies Disney from July 2015.

26 May 2015 SKY Investor Day 2015 Page 29

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LINEAR TO VOD TO SVOD

2014

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THE MOVIE TIER EXPANSION

26 May 2015 SKY Investor Day 2015 Page 30

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THE MOVIE TIER EXPANSION

LINEAR TO VOD TO SVOD

2015

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26 May 2015 SKY Investor Day 2015 Page 31

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BRINGING VOD TO OUR CUSTOMERS

LINEAR TO VOD

MYSKY UPGRADE ALLOWS CUSTOMERS GREATER CONTROL AND AN

EXPLOSION OF VIDEO ON DEMAND (VOD):

• Linear viewing options combine with:o PVR functionality

o Reverse EPG access

o Endless hours of VOD tied to their favourite SKY and Affiliate channels

o E.G.: 1,000’s of movies On-Demand broken into genres for ease of

access for SKY MOVIES subscribers

o Series Box Sets (e.g. Game of Thrones 1-5/The Wire 1-5 for SoHo

subscribers)

o Weekly catch-up of their favourite series on SKY Basic

26 May 2015 SKY Investor Day 2015 Page 32

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SVOD/OTT IN NZ: A RATIONALISED APPROACH

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26 May 2015 SKY Investor Day 2015 Page 33

SPORT

RICHARD LASTDIRECTOR OF SPORTFANATICAL ABOUT CHAMPIONS CHELSEA FC

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Copyright ©

PREMIUM CONTENT

26 May 2015 SKY Investor Day 2015 Page 36

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WE CONTINUE TO SECURE PREMIUM SPORT CONTENT

26 May 2015 SKY Investor Day 2015 Page 37

KEY PROPERTIES

SUPER RUGBY

RUGBY CHAMPIONSHIP

THE LIONS

ALL DOMESTIC CRICKET

UPCOMING TOUR BY AUSTRALIA

ALL RACES QUALIFYING

ANZ CHAMPIONSHIP

CONSTELLATION CUP

FIFA WORLD CUP

U17&U20 WORLD CUP

OTHER MAJOR COMPETITIONS

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WE CAN GO DEEPER OR COVER MORE LIVE SPORT WITH OUR POP-UP CHANNELS

DEEPER COVERAGE MORE LIVE COVERAGE

26 May 2015 SKY Investor Day 2015 Page 38

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MAKING LOCAL CONTENT MORE VIABLE

26 May 2015 SKY Investor Day 2015 Page 39

1ST XV RUGBY

FOOTBALL

BOXING

HOCKEY

BASEBALL

LOWER PURCHASE PRICE

FEWER STAFF PER EVENT

HORSES FOR COURSES

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MAJOR EVENTS

26 May 2015 SKY Investor Day 2015 Page 40

A CALL TO ACTION

CEMENT OUR POSITION AS PREMIUM CONTENT PROVIDER

CONTINUE TO PRODUCE WORLD CLASS SPORTING EVENTS

WE’RE IMPROVING THE ECONOMICS

ADVERTISING SALES

RAWINIA NEWTONDIRECTOR OF ADVERTISINGFANATICAL ABOUT SoHo

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34 ADVERTISING CHANNELS

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DIGITAL AND PRINT

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DOLLARS SPENT ON ADVERTISING IN 2014 INCREASED 4.2%

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MIL

LIO

NS

Source: ASA

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ONLINE EXPENDITURE BREAKDOWN

26 May 2015 SKY Investor Day 2015 Page 45

MIL

LIO

NS

$613M

$311M

$139M

$128M

$12M

2014 SHARE

Source: ASA

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TELEVISION REVENUE DECLINED -3.9% IN 2014

26 May 2015 SKY Investor Day 2015 Page 46

14.7

8.93.9

1.8 1.9

-1.1

-12

6.5

1.8

-0.6

3.3

-3.9

% C

HA

NG

E Y

EA

R O

N Y

EA

R

CALENDAR YEAR

Jan-0

0

Jan-0

0

Jan-0

0

Jan-0

0

Jan-0

0

Jan-0

0

Ja

n-0

0

Jan-0

0

Jan-0

0

Jan-0

0

Jan-0

0

Feb-0

0

Feb-0

0

Feb-0

0

Feb-0

0

Feb-0

0

Feb-0

0

% C

HA

NG

E Y

EA

R O

N Y

EA

R

QUARTERLYRETURNED TO GROWTH IN Q1

2015

3%

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BIG TV SPORT EVENTS CONTINUE TO GROW TV REVENUES AND SHIFT SHARE

26 May 2015 SKY Investor Day 2015 Page 47

13.78

14.7113.84

16.48

11.51

8.3

11.27

4.7

2.8

10.11

4.89

-2.28

2.23

-6.94

10.4

1.36

-3.59

1.12

9.9

0.09

2.45

3.67

-2.15

-6.69

-10.43

-15.85

-17.86

-4.01

2.77

7.92

11.34

4.36

-0.82

4.85

1.72

1.34

3.41

1.36

-3.01-3.05 -2.99

6.24

7.96

3.332.22

-6.94

-4.4-4.85

3.02

% C

HA

NG

E Y

EA

R O

N Y

EA

R

Market 3.5%

SKY 23%

RUGBY WCNZ

OLYMPICSLONDON

COMMONWEALTHGAMES

OLYMPICSATHENS

OLYMPICSBEIJING

RWCAUSTRALIA

RWCFRANCE

COMMONWEALTHGAMES

LIONSTOUR NZ

CRICKET WCNZ

Market 3%

SKY 14%

COMMONWEALTHGAMES

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SPORT DRIVES ADVERTISING REVENUE

26 May 2015 SKY Investor Day 2015 Page 48

9% SHARE OF AUDIENCE IN SKY HOMES

37% SHARE REVENUE

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IN A DECLINING MARKET SKY HAS MAINTAINED REVENUE YOY

SKY Investor Day 2015

Source: PWC

-3.90%

2.50%

-3.90%

0.00%

-5.00%

-4.00%

-3.00%

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

% C

HA

NG

E Y

EA

R O

N Y

EA

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PERCENTAGE REVENUE CHANGE YEAR ON YEAR

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INCREASED SHARE OF REVENUEJANUARY TO MARCH

13.3%

11.9% 2014

2015

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CHANGING DELIVERY PLATFORMS

26 May 2015 SKY Investor Day 2015 Page 52

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NEW AUDIENCE MEASUREMENT METRICS

26 May 2015 SKY Investor Day 2015 Page 53

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TV REMAINS KING

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TV $40BDISPLAY $12B

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NO OTHER MEDIUM CAN COMPETE WHEN IT COMES TO DELIVERING REACH

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3.6mNew Zealanders

watch TV every week

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3+ hours

per day

NO OTHER MEDIUM CAN COMPETE WHEN IT COMES TO DELIVERING REACH

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DIGITAL COMPANIES UNDERSTAND THE POWER OF TELEVISION

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MARKETERS ARE BECOMING INCREASINGLY FOCUSED ON BRAND SAFETY

SKY Investor Day 201526 May 2015 Page 59

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“KRAFT FOODS RECENTLY REJECTED 75% TO 85% OF DIGITAL AD IMPRESSIONS DUE TO QUALITY CONCERNS”

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SUMMARY

26 May 2015 SKY Investor Day 2015 Page 61

FUTURE ADVERTISING MODELS AND MEASUREMENT

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SKY ADVERTISING STRATEGY

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GOVERNMENT RELATIONS

CHRIS MAJORDIRECTOR OF GOVERNMENT RELATIONSFANATICAL ABOUT SKY SPORT

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THREE KEY ITEMS FEATURE ON OUR REGULATORY RADAR

• Telecommunications Act review

• Regulation of online content

• Copyright Act review

26 May 2015 SKY Investor Day 2015 Page 63

GEARING AND DIVIDENDS

PETER MACOURTCHAIRMAN OF THE BOARDIRRATIONALLY OPTIMISTIC ABOUT THE WALLABIES

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GEARING AND DIVIDEND DECISIONS ARE DRIVEN BY SOME KEY FACTORS

• Optus satellite commitments of $30+m pa to 2023

• STB replacement program in excess of $100m over 18 months

• We capitalise STB and Install costs of approx. $50m in FY15, others Expense these costs

• TV station assets 9 years old, will require replacing ($40m+?)

• $200m Bonds mature in October 2016

• We will draw down debt in FY16 to maintain the current dividend pay out (70% of NPAT)

• Significant changes are afoot in the industry and an agile balance sheet is important

• Acquisition opportunities

26 May 2015 SKY Investor Day 2015 Page 65

Q & A

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THANK YOU

26 May 2015