TOTAL SUBSCRIBERS 865.00 860,445 860.00 856,348 855.00 850.00 845.00 840.00 31-Dec-14 © 2015 Universal Studios and Amblin Entertainment, Inc. All Rights Reserved 31-Dec-15 Page 2 CHURN 1.8% 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% July August September Dec-11 Churn Residential SKY October November December Dec-15 Page 3 SKY PREMIUM PRODUCTS PER SUBSCRIBER 3.8 3.72 3.69 3.6 Dec-14 Andrew Cornaga/www.photosport.nz Dec-15 Page 4 SUPER RUGBY Millions SKY’S NEW WORLD OF DOWNLOADS 14 12 10 8 6 4 2 0 1/07/2015 1/08/2015 1/09/2015 1/10/2015 1/11/2015 1/12/2015 1/01/2016 Page 5 CONNECTIVITY ON SKY BOXES Millions 19% 18% 18% 17% 17% 18% 16% 16% 17% 16% 15% 10-Feb © Universal Pictures and Focus Features 17-Feb 24-Feb Page 6 480 475 470 MillIons Millions REVENUE 465 460 455 476 450 465 445 440 435 430 Dec-14 ©2015 Home Box Office, Inc. All rights reserved. HBO® and all related programs are the property of Home Box Office, Inc. Games of Thrones Dec-15 Page 7 TOTAL ARPU $85.00 $80.00 $79.43 $79.56 Dec-14 Dec-15 $75.00 $70.00 $65.00 $60.00 $55.00 $50.00 John Davidson/www.photosport.nz SIVLER FERNS Dec 15 Includes IGLOO, NEON and FAN PASS, not included in previous periods Page 8 Millions Millions ADVERTISING REVENUE 40 35 42 30 36 25 20 Dec 14 © 2015. CBS Broadcasting,Inc. All rights reserved. ELEMENTARY Sundays at 9.30pm on Prime Dec 15 Page 9 Page 10 Dec15 Qtr Sep 15 Qtr Jun 15 Qtr Mar 15 Qtr Dec 14 Qtr Sept 14 Qtr Jun 14 Qtr Mar 14 Qtr Dec 13 Qtr Sept 13 Qtr Jun 13 Qtr Mar 13 Qtr Dec 12 Qtr Sept 12 Qtr Jun 12 Qtr Mar 12 Qtr Dec 11 Qtr Sep 11 Qtr Jun 11 Qtr Mar 11 Qtr Dec 10 Qtr Sep 10 Qtr Jun 10 Qtr Mar 10 Qtr TOTAL TELEVISION ADVERTISING REVENUE (YOY QUARTERLY CHANGE) 15% 10% 5% 0% -5% -10% PROGRAMMING COSTS % REVENUE 36% 34% 34% 32% 32% 30% 28% 26% 24% 22% 20% Dec-14 © 2015. CBS Broadcasting,Inc. All rights reserved. Dec-15 Page 11 Billions Millions EBITDA Millions 200.0 180.0 160.0 192.4 180.9 140.0 120.0 100.0 Dec-14 Dec-15 Must have TLC and OWN logo on frame Chris Symes/www.photosport.nz Page 12 SUPER RUGBY Millions NET PROFIT 90.0 Milions 95.0 85.0 80.0 75.0 92.5 87.3 70.0 65.0 60.0 Dec-14 Keeping up with the Kardashians Dec-15 Page 13 INTERIM RESULTS SUMMARY 2014 2015 % Change Revenue 464.5 475.6 2.4% Operating Expenses 272.1 294.7 8.5% EBITDA 192.4 180.9 (6.0%) Depn & Amort 54.1 49.2 (9.1%) EBIT 138.3 131.7 (4.8%) Interest 10.0 10.3 3.0% Tax 35.8 34.0 (5.0%) NET PROFIT after TAX 92.5 87.3 (5.5%) Page 15 REVENUE ANALYSIS 2014 2015 % Change Residential Satellite subscriptions 380.9 383.5 0.7% Other subscriptions 34.8 38.8 11.5% Advertising 36.1 42.3 17.2% Other Income 12.6 10.9 (13.5%) TOTAL REVENUE 464.5 475.5 2.4% Page 16 EXPENSE ANALYSIS 2014 2015 % Change Programming rights 147.7 162.9 10.3% Subscriber management 52.5 53.4 1.7% Broadcasting and infrastructure 44.9 47.8 6.5% Depreciation and amortisation 54.1 49.2 (9.1%) Other costs 27.1 30.6 12.9% TOTAL EXPENSE 326.3 343.9 5.4% Page 17 CAPITAL EXPENSE ANALYSIS 2014 2015 % Change Install 14.6 14.5 (0.7%) Decoders 8.2 28.3 245.1% Land and Building Improvements 6.3 0.3 (95.2%) Broadcasting and Technology equipment 3.7 3.2 (13.5%) Other 18.0 13.2 (26.7%) TOTAL CAPITAL EXPENSE 50.8 59.5 17.1% Page 18 OPERATING CASHFLOW 2014 2015 % Change Operating Cashflow 148.2 157.7 6.4% Capex (50.8) (59.5) 17.1% Net debt drawn/(repaid) (8.0) (10.0) 25.0% Dividends (65.5) (65.7) 0.3% Other (2.2) (3.9) 77.3% NET CASH MOVEMENT 21.7 18.5 (14.3%) Page 19 FUNDING PROFILE FACILITY DRAWN MARGIN MATURITY Bank Debt $250m $40m 145bp Jul 2020 Bond - A $200m $200m 65bp Oct 2016 Bond - B $100m $100m Fixed rate at 6.25% Mar 2021 Page 20 FOREIGN CURRENCY HEDGING For USD exposures 95% hedged for 6 months to 30 June 2016 @ 0.7536 79% hedged for June 2017 year @ 0.6907 39% hedged for June 2018 year @ 0.7060 For AUD exposures 93% hedged for 6 months to 30 June 2016 @ 0.9369 80% hedged for 30 June 2017 @ 0.9256 0% hedged for 30 June 2018 Average $US payment rate for Opex for the 6 months to December 15 @ 0.7607 Page 21 DIVIDEND The Board has declared a fully imputed final dividend of 15.0 cps ($58.4m) to be paid and a supplementary dividend of 2.6471 to be paid to non-residents. Record date is 11 March 2016. Payment date is 18 March 2016. Interim 2016 2015 2014 2013 2012 2011 2010 2009 2008 15.0 15.0 14.0 12.0 11.0 8.0 7.0 7.0 7.0 15.0 15.0 12.0 11.0 10.5 7.0 7.0 7.0 30.0 29.0 24.0 22.0 18.5 14.0 14.0 14.0 0 0 0 32.0 25.0 0 0 0 30.0 29.0 24.0 54.0 43.5 14.0 14.0 14.0 Final Ordinary Total 15.0 Special TOTAL 15.0 Page 22