Annual General Meeting 14 November 2002

Annual General MeetingAnnual General Meeting

14 November 200214 November 2002

Subscriber GrowthSubscriber Growth

‘‘000000 20012001 20022002 % Change% Change

UHF ResidentialUHF Residential 159.8159.8 136.3136.3 (15%)(15%)

DBS ResidentialDBS Residential 264.2264.2 284.3284.3 8%8%

DBS WholesaleDBS Wholesale -- 75.475.4 --

CommercialCommercial 6.46.4 7.37.3 14%14%

Total SubscribersTotal Subscribers 430.4430.4 503.2503.2 17%17%

FullFull Year Subscribers Year Subscribers

0

100,000

200,000

300,000

400,000

500,000

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

UHF Satellite Wholesale

Pay Television PenetrationPay Television Penetration

AustraliaAustralia 22%22% FranceFrance 32%32% New ZealandNew Zealand 36%36% United KingdomUnited Kingdom 41%41% FinlandFinland 45%45% GermanyGermany 70%70% United StatesUnited States 81%81% SwitzerlandSwitzerland 83%83% BeNeLuxBeNeLux 95%95%

Average Revenue per Unit (ARPU)Average Revenue per Unit (ARPU)

$48.47

$50.51

$47.00

$47.50

$48.00

$48.50

$49.00

$49.50

$50.00

$50.50

$51.00

NZ$

Total

2001 2002

Total RevenueTotal Revenue

$164$188 $236 $263

$300

$345

$0

$50

$100

$150

$200

$250

$300

$350

NZ

$ in

mill

ions

1997 1998 1999 2000 2001 2002Year End 30 June

CAGR 16%

Advertising RevenueAdvertising Revenue

$5.8

$8.6 $10.7$11.6 $12.6 $16.5

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

NZ

$ in

mill

ions

1997 1998 1999 2000 2001 2002Year End 30 June

CAGR 22%

Subscriber ChurnSubscriber Churn

1.00%

1.50%

2.00%

2.50%

Last Year Actual

Programming CostsProgramming Costsas a percentage of revenueas a percentage of revenue

42%

46%

43%

49%50%

48%

36%

38%

40%42%

44%46%

48%50%

52%

% o

f Pro

gram

min

g

1997 1998 1999 2000 2001 2002Year End 30 June

EBITDAEBITDA

$50.4 $48.3$73.7 $74.1

$75.7

$108.2

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

NZ$

in m

illio

ns

1997 1998 1999 2000 2001 2002

Year End 30 June

CAGR 16%

Results SummaryResults Summary

$ million$ million 20012001 20022002 % Change% Change

RevenueRevenue 300.4300.4 344.6344.6 15%15%

Operating ExpensesOperating Expenses 224.7224.7 236.4236.4 5%5%

EBITDAEBITDA 75.775.7 108.2108.2 43%43%Depn & AmortDepn & Amort 95.495.4 113.0113.0 18%18%

EBITEBIT (19.7)(19.7) (4.8)(4.8) (76%)(76%)InterestInterest 21.321.3 26.726.7 25%25%

OtherOther 1.31.3 (1.3)(1.3) (200%)(200%)

Net Loss after Net Loss after TaxTax (42.3)(42.3) (30.2)(30.2) (29%)(29%)

Free Cash FlowFree Cash Flow

$ million$ million 20012001 20022002 % Change% Change

Net Operating Cash Net Operating Cash FlowFlow 43.943.9 77.077.0 75%75%

Net Investing Cash Net Investing Cash FlowsFlows (140.7)(140.7) (114.2)(114.2) (19%)(19%)

Free Cash FlowFree Cash Flow (96.8)(96.8) (37.2)(37.2) (62%)(62%)

Capital Expenditure Capital Expenditure (excluding Transponders)(excluding Transponders)

$37.4

$13.7

$36.5

$16.9$10.4

$97.9

$13.5

$3.3

$93.6

$6.8$2.9

$130.7

$11.4$11.2

$85.7

$2.0$20.2

$0

$20

$40

$60

$80

$100

$120

$140

$160

$NZ

(mill

ions

)

1997 1998 1999 2000 2001 2002Year End 30 June

Decoders and Installation Digital Expansion Other

Leveraged RatiosLeveraged Ratios

$ million$ million

Bank LoanBank Loan $157.0$157.0

Capital NotesCapital Notes $111.1$111.1

TOTAL DEBTTOTAL DEBT $268.1$268.1

Capitalised ValueCapitalised Value $1,3 bil.$1,3 bil.

Debt to Cap. Value RatioDebt to Cap. Value Ratio 20%20%

Debt to EBITDA RatioDebt to EBITDA Ratio 2.5 times2.5 times

TaxTax

Tax losses carried forward of $110mTax losses carried forward of $110m

Tax Asset not recognisedTax Asset not recognised

Approximately $58m of losses to be offset by INLApproximately $58m of losses to be offset by INL

INL to repay cash to SKY when tax is due INL to repay cash to SKY when tax is due

ie $58mie $58m x 33% = $19.1mx 33% = $19.1m

Annual PerformanceAnnual Performance

70

90

110

130

150

170

190

210

BASE NZSE40.NZ BASE SKY.NZ

Performance Over Performance Over the Last 12 Monthsthe Last 12 Months

80

90

100

110

120

130

BASE2 NZSE40.NZ BASE1 SKY.NZ

SkyBetSkyBet