SKY Network Television : Transformation Accelerates – Sky Raises F22 Guidance - Presentation

Investor Update

7 December 2021

Disclaimer

This presentation has been prepared by Sky Network Television Limited and its group of companies ("the Company") for informational purposes. This disclaimer applies to this document and the verbal or written comments of any person presenting it.

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2© SKY 2021

Our Strategy

	MATTERS	Our Customers
	WHAT
	MOST:
	WHAT DO	We connect New Zealanders with the sport and entertainment
	WE DO:	they love, in ways that work for them, right across the country
	WHAT	CUSTOMERS	CONTENT	PEOPLE	FINANCIAL
	WE'RE	Nurture and grow	Be the preferred	Be a place where	Grow revenues
	FOCUSING
	our Sky Box and	partner for	our crew are	and reduce
	ON:
	Streaming	rightsholders,	empowered to do	operating costs
		customers	content creators	their best work
			and distributors

THE "BEDROCK"	Rapid and sustained execution, and
OF OUR BUSINESS:	enabling our people to succeed

Being an efficient, adaptive and profitable business

3

Faster progress and substantial savings

• Acceleration of transformation - and robust review of Sky's cost base

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Substantial savings identified for FY22, with immediate boost to EBITDA and NPAT forecasts

Upgraded guidance delivers 27% increase in midpoint of previous EBITDA, and 96% increase in NPAT forecast Full year impact of $40m to $45m p.a. of permanent annualised cost savings

More permanent savings targeted for FY23 and beyond

• Cost reset, combined with growth in revenue, will deliver significant levels of free cash flow, helping to inform capital management strategy
• Property sale progressing well
• Strong Executive Leadership Team in place to ensure delivery of outcomes

4© SKY 2021

Delivering $40-$45m of additional savings in FY221

Following business-wide initiative to reset the cost base

What we've done

• Transformational reset across all operating and capex cost lines throughout the business
• Non-programmingopex review of every cost line, with a particular focus on third party spending
• Focus on Programming cost covering both rights and production, including a strategic
  'from the ground up' review of sports production
• Capex roadmap simplified to focus on strategic deliverables
• Wide consultation within the business to capture and test initiatives

What it means

• Delivering additional opex cost savings of $35m (net) in FY22, ($26m recurring and $9m one offs) with an annualised impact of $40m - $45m p.a.
• Expecting capex savings of $5 - $10m in FY22
• Minimal one-off cost associated with achieving savings, estimated to be $0.5m in FY22
• Data and insights testing confirms minimal impact on customer experience or revenue lines
• Targeting further recurring savings to be delivered from FY23 through identified medium to longer-term transformation initiatives

5	1 Compared to previous FY22 forecasts that included $5-$10m
of targeted opex savings