BOND ISSUE ROADSHOW FEBRUARY 2014 | SPEAKERS AND AGENDA Spe - - PowerPoint PPT Presentation
SKY NETWORK TELEVISION LIMITED BOND ISSUE ROADSHOW FEBRUARY 2014 | SPEAKERS AND AGENDA Spe Speak akers ers John Fellet Chief Executive Jason Hollingworth Chief Financial Officer Agenda enda Offer highlights SKY
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Spe Speak akers ers
Agenda enda
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Issuer Issuer SKY Network Television Limited Bonds Bonds Unsecured, unsubordinated fixed rate debt obligations (“Bonds”) Issue Size Issue Size Up to $100 million Maturity Maturity 31 March 2021 (7 years) Inter Interest Rate st Rate [6.25-6.50]% p.a. paid quarterly in arrears Interest Rate to be announced on or before Opening Date, 3 March 2014 Cr Credit Rating edit Rating Not rated Applicat Applications ns Minimum $5,000 and multiples of $1,000 thereafter Br Brok
erage Brokerage 0.75% Firm 0.50% Early Bir Early Bird Inter Interest st Payable at the Interest Rate Quot Quotat ation Application has been made to NZX Limited (NZX) for permission to quote the Bonds on the NZX Debt Market (NZDX) and all the requirements of NZX relating to that application that can be complied with on or before the date of the Simplified Disclosure Prospectus dated 24 February 2014 (Prospectus) have been duly complied with. However NZX accepts no responsibility for any statement in the Prospectus or this Issue Flyer. NZX is a registered exchange which operates a registered market, regulated under the Securities Markets Act 1988 Joint L Joint Lead ad Managers Managers ANZ, BNZ, Westpac
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857,115 Subscribers 1,217 Subscriber Net Gain ARPU $77.51 Net Profit $82.1m 13.3% Subscriber Churn In 49% of NZ households MYSKY subscribers 56.7% of customers Programming costs 30%
1150 employees 117 Channels Broadcasted
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100 200 300 400 500 600 700 800 900 Jun-91 Jun-92 Jun-93 Jun-94 Jun-95 Jun-96 Jun-97 Jun-98 Jun-99 Jun-00 Jun-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Jun-06 Dec-06 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 Dec-13
Subscribers in Thousands UHF Std SKY Wholesale SKY mySKY Other
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0% 5% 10% 15% 20% 25% 30% 35%
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 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
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5 5 10 15 20 25 30
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Subscriber bscribers in s in Thousands Thousands 2009 2010 2011 2012 2013
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RESIDENTIAL SUBSCRIBERS AT JUNE 30
$62.10 $64.00 $67.61 $70.45 $71.93 $75.83
$50.00 $55.00 $60.00 $65.00 $70.00 $75.00 $80.00 2008 2009 2010 2011 2012 2013
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2.45 2.5 2.55 2.6 2.65 2.7 2.75
2011 2012 2013
Millions Millions
HD Access Ticket
AT JUNE 30
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619 659 692 742 797 843 885
200 400 600 800 1000
2007 2008 2009 2010 2011 2012 2013
Revenue ($m)
33% 32% 33% 33% 32% 32% 33%
2007 2008 2009 2010 2011 2012 2013
Programming Cost %
77.9 97.7 88.1 103.0 120.3 122.8 132.2
‐ 50.0 100.0 150.0
2007 2008 2009 2010 2011 2012 2013
Net Profit ($m)
81.4 119.5 132.2 139.0 139.6 132.3 83.6
‐ 50.0 100.0 150.0
2007 2008 2009 2010 2011 2012 2013
Capital Spend ($m)
SKY GROUP AT JUNE 30 (DRAWN FROM AUDITED FINANCIAL INFORMATION)
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Subscriptions residential
82%
Advertising
8%
Other subscriptions
7%
Other Income
2%
Installation
1%
Revenue
Programming rights 34% Depreciation and amortisation
20%
Broadcasting and infrastructure
13%
Subscriber management
10%
Programme
Sales and marketing 6% Other administrative
5%
Advertising 3%
Operating expense
SKY GROUP at 30 June 2013
(DRAWN FROM AUDITED FINANCIAL INFORMATION)
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$m Dec 2013 (6 months) unaudited Dec 2012 (6 months) unaudited June 2013 (1 year) audited Revenue 456.4 443.3 885.0 Operating Expenses 266.0 266.2 531.9 EBITDA 190.4 177.1 353.1 Depn & Amort 61.8 67.6 134.3 EBIT 128.6 109.5 218.8 Interest/Finance Expense (net) 14.4 15.9 29.8 Tax 32.1 26.3 56.8 NET PROFIT after TAX 82.1 67.3 132.2 Non-Controlling Interest
Attributable to equity holders
83.5 68.1 137.2
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$m Dec 2013 (6 months) unaudited Dec 2012 (6 months) unaudited June 2013 (1 year) Audited Current Assets 138.4 148.7 127.6 Non – Current Assets* 1,740.9 1,772.8 1,749.9 Total Assets 1,879.3 1,921.5 1,877.5 Current Liabilities 184.9 170.4 178.7 Non – Current Liabilities 476.8 601.3 521.0 Total Liabilities 661.7 771.7 699.7 Equity 1,217.6 1,149.8 1,177.8 Total Equity and Liabilities 1,879.3 1,921.5 1,877.5
* * Goodwill Q 1,422.5 1,422.5 1,422.5
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FACILITY DRAWN MATURITY
Bank Debt $400m $227m Jul 2018 Bond $200m $200m Oct 2016
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Issuer Issuer SKY Network Television Limited Bonds Bonds Unsecured, unsubordinated fixed rate debt obligations Issue Size Issue Size Up to $100m Maturity Maturity 31 March 2021 (7 years), unless redeemed earlier Inter Interest Rate st Rate [6.25-6.50%] p.a. paid quarterly in arrears Interest rate to be announced on or before Opening Date, 3 March 2014 Early R Early Redemption demption option
SKY may in its sole discretion make a full or pro rata repayment to Bondholders on each of 31 March 2017, 31 March 2018, 31 March 2018, 31 March 2019 or 31 March 2020. .
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Pr Prospectus R
gistered ed 24 February 2014 Ro Roadshow 25 - 26 February 2014 Fi Firm B Bids ds Du Due 11.00am Friday 28 February 2014 Alloc Allocation
s and Rate Rate Set Set 28 February 2014 Off Offer Opens r Opens 3 March 2014 SDP Har SDP Hard Copie Copies Deliv Delivered Expected to be available from 4 March 2014 Closing Date Closing Date Wednesday, 26 March 2014 Issue Date Issue Date 31 March 2014 Expected NZD Expected NZDX Quotati Quotation Date ate 1 April 2014
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Key y featur atures of SKY and this off
SKY SKY
Zealand having been operating for 23 years.
SKY
December 2013
months to 31 December 2013 (unaudited) BON BONDS
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A simplified disclosure prospectus dated 24 February 2014 has been prepared by Sky Network Television Limited ("Issuer" or "SKY") in respect
(“Prospectus”). This document does not constitute a recommendation by ANZ Bank New Zealand Limited (“ANZ”), Bank of New Zealand (“BNZ”) and Westpac Banking Corporation, acting through its New Zealand Branch (“Westpac”) (together the “Joint Lead Managers”), The New Zealand Guardian Trust Company Limited (“Trustee”) or any of the directors, officers, employees or agents of the Joint Lead Managers, the Trustee or SKY to subscribe for, or purchase, any of the Bonds. None of the Issuer (except as required by law), the Joint Lead Managers or the Trustee, nor any
contents or otherwise arising in connection with the Offer. This document is for preliminary informational purposes only and is not an offer to sell or the solicitation of an offer to purchase or subscribe for the Bonds and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. The information in this document is given in good faith and has been obtained from sources believed to be reliable and accurate at the date of preparation, but its accuracy, correctness and completeness cannot be guaranteed. You should not decide to purchase the Bonds until you have read the Prospectus relating to the Bonds. Applications for Bonds may only be made by completing and lodging one of the Application Forms accompanying the Prospectus. The Prospectus is an important document and should be read carefully. Investors should consider the risks that are associated with an investment in the Bonds, particularly with regard to their personal circumstances (including financial and tax issues). The principal risks associated with the Bonds are set out in the Prospectus under the heading “What are my risks?”. The Issuer intends to offer the Bonds to the public in New Zealand. No action has been or will be taken by the Issuer which would permit an
(other than New Zealand). Application has been made to NZX Limited (“NZX”) for permission to quote the Bonds on the NZX Debt Market (“NZDX”) and all the requirements of NZX relating thereto that can be complied with on or before the date of distribution of this document have been duly complied with. However, NZX accepts no responsibility for any statement in this document or the Prospectus. NZX is a registered exchange, and the NZDX is a registered market, each regulated under the Securities Markets Act 1988. The Bonds constitute unsecured, unsubordinated, fixed rate debt obligations of the Issuer ranking equally among themselves and equally with all other outstanding unsecured obligations of the Issuer. To obtain a copy of the Prospectus investors should contact any of the Joint Lead Managers or their usual financial adviser to request a free copy. Capitalised terms used in this document and not otherwise defined have the meanings given to them in the Prospectus. No applications will be accepted or money received unless the subscriber has received the Prospectus.
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