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Reports of my death are greatly exaggerated- Mark Twain. TV viewing in NZ is at an all time high. Consumers have more channels than ever before and better content than ever before. In many ways it’s a second golden age of TV with the best writers and producers making shows like Game of Thrones and Mad Men. Even in UK –where second devices are heavily penetrated the TV is still extremely dominant. The BBC iPlayer accounts for just 2% of total BBC viewing. Only 0.2% watch on iPlayer exclusively. TVs are also getting bigger- Given the choice of 52 inch HD TV or watching their favourite show on a iPad or phone consumers will choose the big TV in the living room where they can. 9

However we understand that companion devices present a great opportunity for us to add value to our subscribers and potentially offer us ARPU and advertising opportunities. We believe the best way forward is a marriage of linear and on demand content giving subscribers a seamless entertainment experience wherever they may be. Consumers don’t, and shouldn’t care too much about the ”how” of content delivery. We do of course . My colleague Matt Orange will give an overview of our product roll out later in the presentation. 10

Why does TV still rule? At a fundamental level it entertains better than anything else. Whether you want to be inspired, excited, educated of just veg out after a long day SKY is the only place that gives you those options. Free to air only offers a limited choice. Subscribers look for just a couple of “great” TV experiences each week to justify their SKY subscription. We provide great experiences through our channels and programming but also by co- creating value with our subscribers through tools like MY SKY. In the future we will add even more value through better content discovery tools. 11

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We are pleased that we have been able to grow subscribers in what has been very difficult conditions for Pay TV operators right around the globe. FY12 however was a unique year for SKY. The Rugby World Cup 2011 in NZ gave us an unusually high number of new subscribers in the first half of that financial year. During the first half of this year we have seen an “echo” of that boom impacting net gain. But that’s not the whole story. We expect this to be a temporary phenomenon as the effect of churn from RWC 2011 has now faded from the business. We also anticipated having our low cost, IGLOO, service in market. In anticipation of IGLOO’s launch SKY withdrew aggressive direct marketing offers in areas where we believe IGLOO will give us a longer lifetime value than a on/off high maintenance SKY subscription. New Zealand has also experienced an exceptional summer. Having said that the economy is still the biggest influence on net gain and any improvement in that area can only improve our outlook. 13

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Interest in Pay TV remains strong. We have been looking at interest in the category for 20 years and it’s a familiar pattern. As we add more subscribers, better content and better tools for adding value to our subscribers more NON subscribers , who previously rejected SKY move towards becoming customers. From a marketing perceptive it’s straightforward. Using our unique content story we; Create interest in the category Create desire in subscribing Act on that desire by ensuring we get the order when we get the opportunity 15

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ARPU continues to grow through … Our ability to increase the price of the basic service and to increase value through new programming and channel additions - MY SKY penetration increases - HD ticket - Multiroom -Growth in premium channels such as SoHo. 17

The dotted line shows where we think our MY SKY net gain will land this year. We have been very aggressive in migrating customers to this box over the last few years. We still think we can grow MY SKY but we do not wish to deeply discount in order to continue the growth at current rates. 18

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Continue our successful formula 20

Good afternoon, my name is Matt Orange. I’ve been at SKY for 7 years, leading our business strategy and planning function. Over the last two years, I’ve also been involved in establishing a product innovation team that, to date, has developed products such as iSKY, IGLOO and the SKY TV Guide App. 21

At SKY we see product innovation as a key way to enhance the overall customer experience. We know that one of the best ways to attract and retain customers is to ensure they always have something good to watch. So a big focus we have is on making it easier for customers to discover content that’s relevant to them. New technology is expanding the possibilities for showcasing and discovering content. It’s also expanding the options for accessing and consuming content, as the number of internet connected devices continues to grow. Increasingly our customers expect to be able to access their SKY subscription anytime and anywhere they wish. Today I wanted to talk about a couple of developments we have underway. We hope to have these available in the market within the coming 12 months. We believe these developments will significantly enhance the SKY customer experience as well as the value of SKY’s business. 22

The first of these relates to our flagship product – MY SKY As you all know, MY SKY has been an excellent product for SKY, with its ability to deliver lower churn and higher ARPU. At the end of December there were 424k MY SKY subscribers, representing 54% of our customer base. We expect this to continue to grow over the coming years. Within the next 12 months we are working on a major software upgrade to MY SKY. This software upgrade will be delivered seamlessly over the air to all MY SKY units deployed in the field. The software upgrade will deliver some significant new enhancements. 23

The change that customers will first observe will be a more modern looking user interface. Today, the MYSKY user interface you may be familiar with looks as follows. Once a customer has received the new software it will look more like this. The new user interface will be delivered in High Definition quality. There will be enhancements to search, navigation and usability. These enhancements are intended to help put customers more in control, as well as make it easier for them to discover content. The most prominent enhancement will be the addition of a new video on demand offering that will be available once customers get their MYSKY Internet- connected. Now, we already offer a limited video on demand service via MYSKY. This is delivered via the satellite to the MYSKY hard-drive. This technology enables 20 to 30 new release pay-per-view movies to be offered at any time. 24

The new on demand offering will take advantage of broadband-based delivery, enabling SKY to significantly expand the amount of on demand content that can be made available to our customers. 24

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The types of on demand programming that SKY will look to offer falls into four main categories. The first relates to catchup VOD, which is programming that has already been broadcast on SKY and which is then made available on demand. Access to catchup VOD is free, depending on your existing subscription. So for example, if you’re a SKY Sports subscriber and you missed the All Blacks test last night, you’ll be able to access the game shortly afterwards via the on demand section. The second category is referred to as entitlement VOD. This is additional content that is made available as a free value-add, also depending on your existing subscription. For example, if you’re a SoHo subscriber who loves Game of Thrones, you could watch Seasons 1 and 2 on demand, at the time we premiere Season 3 on the SoHo channel. Both Catchup and Entitlement VOD are about enhancing the value of a customer’s existing subscription and are aimed at improving retention and lowering churn. 26

The third category of on demand content is subscription VOD. This is additional content that a customer may choose to subscribe to for an additional monthly fee. For example, SKY may decide to license a genre based catalogue e.g.. Westerns that it delivers via the on demand service instead of as a linear broadcast channel. The final category of on demand content builds on SKY’s existing Box Office offering, whereby customers can rent access to additional programming on a pay- per-view basis. Both Subscription VOD and Transactional VOD extend the ability for SKY to grow ARPU. 26