4 th Quarter & Full Year FY18 Results 28 th March 2018 - PowerPoint PPT Presentation

4 th Quarter & Full Year FY18 Results 28 th March 2018

Disclaimer This document contains certain forward-looking statements with respect to Astro Malaysia Holdings Berhad’s (“Astro”) financial condition, results of operations and business, and management’s strategy, plans and objectives for Astro. These statements include, without limitation, those that express forecasts, expectations and projections such as forecasts, expectations and projections in relation to new products and services, revenue, profit, cash flow, operational metrics etc. These statements (and all other forward-looking statements contained in this document) are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond Astro’s control, are difficult to predict and could cause actual results to differ materially from those expressed or implied or forecast in the forward-looking statements. These factors include, but are not limited to, the fact that Astro operates in a competitive environment that is subject to rapid change, the effects of laws and government regulation upon Astro’s activities, its reliance on technology which is subject to risk of failure, change and development, the fact that Astro is reliant on encryption and other technologies to restrict unauthorised access to its services, failure of key suppliers, risks inherent in the implementation of large-scale capital expenditure projects, and the fact that Astro relies on intellectual property and proprietary rights which may not be adequately protected under current laws or which may be subject to unauthorised use. All forward-looking statements in this presentation are based on information known to Astro on the date hereof. Astro undertakes no obligation publicly to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This presentation has been prepared by Astro. The information in this presentation, including forward-looking statements, has not been independently verified. Without limiting any of the foregoing in this disclaimer, no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of such information. Astro and its subsidiaries, affiliates, representatives and advisers shall have no liability whatsoever (whether in negligence or otherwise) for any loss, damage, costs or expenses howsoever arising out of or in connection with this presentation. 1 | 4QFY18 results

4Q FY18 key performance highlights 5.1mn to 5.5mn households • Revenue -1% 71% to 75% household penetration • RM5.61bn → RM5.53bn 1.6mn Astro GO registered users • GROW 1.3mn Go Shop registered customers • Adex +2% 3.1mn Tribe total installs • 6.9mn average monthly unique visitors • RM705mn → RM722mn to digital assets LEAD 77% TV viewership share driven by • EBITDA +0.2% vernacular content RM1.82bn → RM1.82bn 804k connected STBs • 16.5mn weekly radio audience • PATAMI +24% ARPU of RM99.9 • MONETISE RM624mn → RM771mn 38% to 44% TV Adex share • 73% to 74% Radex share • FCF of RM1.36bn • Reach and scale via households and +4% (from 1.32bn) individuals • Content IPs and verticals INVEST 177% of PATAMI • Digital and commerce ventures • Operational efficiencies Talent – on-air and digital • 2 | 4QFY18 results

FY18 year-on-year overview NB Highlights FY17 FY18 Growth (1) TV household data sourced from the TV households (000s) (1) 7,207 7,321 2% Department of Statistics Malaysia and Media Partners Asia TV household penetration (2) 71% 75% 4pp (2) Household penetration comprises TV customer base (000s) 5,121 5,489 7% residential Pay-TV customers and NJOI customers ARPU (RM) 100.4 99.9 -0.5% (3) Viewership share is based on DTAM deployed by Kantar Media. Astro TV viewership share (3) 77% 77% +0.2pp (4) Audience measurement is provided by Radio listenership (mn) (4) 15.6 16.5 6% GfK. Share of radex is based on internal estimates Average monthly unique visitors (mn) (5) 5.5 6.9 25% (5) Average monthly unique visitors to Connected STBs(000s) (8) 507 804 59% Astro’s digital assets as sourced from comScore Revenue (RM mn) 5,613 5,531 -1% (6) Data presented are for full year FY18 (7) Numbers may not add up due to EBITDA (RM mn) 1,817 1,820 +0.2% rounding differences EBITDA margin 32% 33% 1pp (8) Connected set-top boxes (STBs) are connected to the internet and have PATAMI (RM mn) 624 771 24% access to Astro’s On Demand library of FCF (RM mn) 1,317 1,364 4% content EPS (RM sen) 12.0 14.8 23% 3 | 4QFY18 results

Growing our household and digital reach Average Monthly Unique Visitors (2) (mn) Connected STBs (1) (000s) Households (000s) ARPU (RM) Household Penetration 71% 75% +59% +25% 0.5% 804 5,489 6.9 5,121 100.4 507 99.9 5.5 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 NB (1) Connected set-top boxes (STBs) are connected to the internet and have access to Astro’s On Demand library of content (2) Monthly averages of unique visitors to Astro’s digital assets as sourced from ComScore for FY18 and FY17 4 | 4QFY18 results

Maintaining our TV viewership share Pay-TV NJOI 190 73 30 channels Astro-branded channels channels Avg. Daily Viewers (mn) TV Viewership Share Avg. Time Spent/Day -4.3% -2.6% 13.9 13.3 +4.1% 23% -11.1% +0.2pp 8.1 77% 3:55 7.2 3:49 2:01 2:06 FY17 FY18 FY17 FY18 Astro FTA NB (1) Number of channels as at 31 January 2018 5 | 4QFY18 results (2) Target Audience: Kantar Media, Dynamic TV Audience Measurement (DTAM). All Astro Pay-TV viewers.

Revenue resilient underpinned by growth drivers (2) Total revenue (RM mn) YoY growth 1,428 1,424 1,420 (1%) 1,397 1,397 1,388 1,363 74 62 70 1,326 61 73 85 11% 64 62 188 186 181 208 175 150 196 143 2% Go Shop Adex (1) Subscription/Others 1,168 1,174 1,155 1,148 1,149 1,140 1,121 1,107 (3%) 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 4QFY18 NB (1) Disclosed as Subscription revenue and Other revenue in our financial statements, includes revenue streams such as TV subscription, licensing income, programme sales, NJOI revenue and theatrical revenue (2) YoY refers to FY18 vs. FY17 6 | 4QFY18 results (3) Numbers may not add up due to rounding differences

Adex growth amid industry contraction (2) (1) (RM mn) YoY growth Advertising income Radio listeners (mn) ( 3) Share of Radex Total Malaysia gross ADEX YoY TV Radio 208 196 74% 73% growth (2)(5) 188 186 16.5 15.6 181 2% 175 89 OVERALL ADEX 150 84 143 (8%) 83 87 86 79 (1%) FY17 FY18 FY17 FY18 72 72 Astro TV RADIO viewership share (4) (5%) Share of TV adex 120 112 77% 77% 105 44% 99 95 96 6% 38% 78 71 TV (12%) 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 4QFY18 FY17 FY18 FY17 FY18 NB (1) Advertising income is net of commissions and discounts. Digital adex is included in TV and Radio adex. (2) YoY refers to FY18 vs. FY17 (3) Audience measurement is provided by GfK. Share of radex is based on internal estimates (4) Viewership share is based on DTAM deployed by Kantar Media. Share of TV adex is based on Astro and Group M’s estimates (5) Malaysia gross adex figures are based on Nielsen and Group M’s data 7 | 4QFY18 results (6) Numbers may not add up due to rounding differences

Cost optimisation remains a key focus Total operating expenditure (RM mn) Content cost as % of TV 33% 39% 37% 35% 34% 28% 36% 33% revenues 1,184 1,186 1,136 1,153 1,129 1,085 1,043 1,029 687 665 706 778 695 676 624 690 497 471 447 434 409 405 408 353 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 4QFY18 Content costs Other expenses NB (1) Content costs are disclosed as part of cost of sales in our financial statements (2) Other expenses include marketing and distribution costs, administrative expenses, STB installation and smartcard costs, depreciation and amortisation, as well as maintenance costs 8 | 4QFY18 results (3) Numbers may not add up due to rounding differences

Applying ROI discipline in capex spend (RM mn) Capex (RM mn) STBs as % of as % of 4% 4% 3% 4% revenue revenue 237 200 246 163 FY17 FY18 FY17 FY18 Key capex investments in FY18 include: ▪ STBs/ODUs are owned by Astro, and are capitalised ▪ Technology infrastructure ▪ STBs/ODUs are conservatively amortised over 3 years; ▪ Customer experience note that actual useful life is typically greater than 5 years ▪ Product and service upgrading ▪ Discretionary 36 month bullet payment vendor financing is available for Astro for STB/ODU purchases ▪ RM710mn of vendor financing recorded in payables, of which RM321mn is current and RM389mn is non- current NB (1) Data presented are for the financial year ended 31 Jan 9 | 4QFY18 results (2) Numbers may not add up due to rounding differences