Sky ASM 2020 – Chairman’s & CEO’s Address

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Sky Annual Shareholders’ Meeting –
Chairman’s and Chief Executive’s Address
13 October 2020


Sky Network Television Limited (NZX/ASX: SKT) will hold its Annual Shareholders’ Meeting
starting at 10:30am today (NZDT). The event is being held as a virtual meeting and can be
accessed through the web platform www.web.lumiagm.com or the Lumi AGM App which can
be downloaded from the App Store or Google Play. The meeting ID is 337-991-328 and
Shareholders should also note they will need to enter their CSN/Securityholder Number if
they wish to vote or ask questions online.

Sky shareholders are warmly encouraged to participate. In addition to the formal business of
the meeting, shareholders will hear from Sky’s Chair, Philip Bowman and Chief Executive
Martin Stewart, who will each deliver an address. There will also be an interview session with
the Chief Executive covering a range of topics and an opportunity for shareholders to ask
questions.

Copies of the Chair’s and Chief Executive’s addresses and presentation are attached. A
replay of the Annual Shareholders’ Meeting will be made available on Sky’s website following
the event.

Authorised by: Sophie Moloney, Company Secretary
For further information, please contact:
Sophie Moloney
Chief Commercial Officer and Company Secretary
(09) 579 9999
sophie.moloney@sky.co.nz
Chris Major
Director of External Affairs
(029) 917 6127
chris.major@sky.co.nz

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1 
 
AGM SCRIPT – CHAIRMAN’S REMARKS – FINAL 13 OCT 
Good morning everyone.  My name is Philip Bowman, and it is my pleasure as Chairman to 
welcome you to our Annual General Meeting for 2020.  Many of you are long‐standing 
shareholders, and on behalf of the Board I would like to
 thank you for your continued 
support over the last year.  We also welcome and thank those of you who have chosen to 
become new investors in Sky during this year.   
It is disappointing that we are not meeting in person today, but I believe it was the right 
decision to meet in a virtual setting this year, given the ongoing uncertainties surrounding 
continued waves of the COVID‐19 pandemic around the world. I very much hope that we 
will be able to return to a more normal physical meeting in 2021. 
I am advised that we have a quorum present, and
 I therefore declare our Annual General 
Meeting open.  I am also pleased to officially open online voting. 
I am joined today by our Chief Executive Martin Stewart, and fellow board members both in 
person and online.  I introduce and welcome: 
‐ Joan Withers 
‐ Keith Smith 
‐ Mike Darcey, who 
is attending online 
‐ Derek Handley 
‐ Susan Paterson 
‐ And Geraldine McBride, who is also attending online. 
I also welcome representatives from our auditors, PricewaterhouseCoopers and our 
corporate solicitors, Chapman Tripp, as well as members of the Sky leadership team who are 
here in person today. 
Structure 
Turning to the
 format of today’s meeting: 
‐ I will make some comments about the past year as well as the key priorities for the 
current fiscal year. I will also take the opportunity to recognise Susan Paterson’s 
contribution to Sky, as Susan is retiring from the Board today.  
‐ I will then 
pass to Martin, who will provide more detail on the progress the 
management team made in fiscal 2020, including a summary of our financial 
performance and future strategy. Martin’s presentation will include an interview 
with Bernadine, who will ask Martin some questions around our short and medium 
term business initiatives.    
‐ We will then move to the formal business of the meeting. There are three 
resolutions as set out in the Notice of Meeting, including the re‐election of Keith 
Smith and Mike Darcey.  I will ask Keith and Mike to make some brief remarks at that 
time. 

 
2 
 
‐ Finally, I will open the floor for questions from you, our shareholders.  Bernadine has 
explained the process for submitting questions. Martin and I look forward to a good 
dialogue. 
Chair’s review  
I will commence by reflecting on the past financial year. The 2020 fiscal year began well for 
Sky, with
 a new leadership team, a clear strategy and the signing of key sports rights 
contracts, providing direction and a renewed purpose to address the many challenges facing 
the business.  In particular, the decision to accelerate our focus on streaming while 
improving our service to satellite customers saw Sky continue to achieve subscriber growth, 
both organically and through acquisitions that generated further positive momentum across 
the business.   
 The local and global impacts of COVID‐19 inevitably draw our attention to the final quarter 
of the 2020 fiscal year. In light of these uncertain times, Sky refreshed its strategy in May 
2020 and has made good progress on executing the strategy and delivering on the 
milestones that have been endorsed by the Board.   
The refreshed growth strategy, as set out in our capital raise documentation in May, 
includes four pillars which Martin will expand upon in his remarks shortly.  They can be 
summarised as: 
1. Continuing to strengthen our core satellite business and improve customer service; 
2. Delivering growth in entertainment and sport streaming; 
3. Launching a broadband service to grow customer relationships and add more value 
to customers; and 
4. Developing and growing an international rugby content business. 
I noted in my 
remarks at last year’s AGM that Sky is a business in transformation, 
positioning itself for future growth in a media sector that has evolved rapidly over the past 
five years. Whilst few of us could have predicted the disruption that COVID‐19 would bring, 
the Sky team responded professionally and swiftly
 to the onset of the pandemic, adapting 
business operations to address the immediate implications of the lockdown, and ongoing 
restrictions on gatherings and cross‐border movements.   These actions ensured Sky was 
well positioned to operate as an essential service as we worked to minimise the impact on 
customers, staff and 
Sky’s financial performance.  
I previously signalled in my letter contained in the Interim Results that delivering on Sky’s 
strategy would require a strengthened capital structure. Faced with the additional challenge 
of the COVID‐19 pandemic, the Board moved decisively with a capital raise in May, in 
parallel securing and extending the
 company’s banking facility.  As a result, we have entered 
the 2021 fiscal year in a much stronger position, able to navigate through likely headwinds 
from the virus whilst continuing to implement the refreshed growth strategy.  I thank all of 
you who participated in this capital raise. 
You will know from our announcement of the Annual Results in September that one of the 
decisions we took at financial year end was to write off goodwill of $177.5 million.  This 

 
3 
 
decision was due to a combination of uncertainties arising from COVID‐19, and reference to 
our share price at that time.  It had a one‐off, non‐cash impact on our operating profit for 
the fiscal year, and Martin will take you through the numbers shortly.   
We also undertook a careful
 assessment of our dividend policy, with the option of either 
returning to the payment of dividends or reinvesting capital in the business.  We have 
decided to reinvest available free cash flow back into the business during fiscal 2021, but 
the Board has committed to re‐evaluating the possibility of recommencing payment of 
dividends in fiscal 2022.  
Management will continue to keenly focus on controlling the cost base of the Company and 
reducing its capital intensity, while investing appropriate resources to implement the 
strategic pillars I mentioned earlier in my remarks.  The conditional sale of OSB, which is 
currently before the Commerce Commission for approval, is a good example of 
management’s focus on allocating capital more efficiently. Once the OSB sale has settled, 
this alone will avoid future capital investment of some $50 million in aggregate over the 
next few years. 
Successfully delivering a compelling broadband proposition for Sky customers is a key 
priority for the management team, as is delivering our ongoing technology innovation 
programme, where we seek to enhance the experience of customers at every stage of their 
interaction with Sky. 
We celebrate Sky’s 30
th
 anniversary this year, and for those three decades Sky has played a 
vital role in the sport ecosystem of New Zealand, supporting an increasing number of sports 
codes and bringing content with great production values to our customers across the 
country.  New Zealand is not a large market, and we 
are very aware that there are limits to 
the amount that customers are prepared to pay for content, particularly in uncertain 
economic times.  We recognise the careful balance required between meeting the 
ambitions of our sports codes and sustaining those partnerships, whilst prudently managing 
costs to ensure shareholder returns.   
Sky’s transition
 to a modern, customer‐led, multi‐media business has not only involved 
reorienting our strategic focus but also required us to deliver a leaner, more customer 
centric, and agile operating model.  The major organisational changes are now complete, 
and Martin and his team have entered the new fiscal year with 
determination to deliver on 
the refreshed growth strategy. 
On behalf of the Board, I would like to thank Martin for his leadership during what has been 
a complex and very challenging year.  As I noted at the meeting last year, we are fortunate 
to have attracted a CEO of Martin’s calibre
 and expertise, and it is a credit to Martin and the 
leadership team that the company has been able to make significant progress this year, 
despite the curve ball of COVID‐19. 
I would also like to extend our thanks to all Sky staff for their contribution and commitment 
to 
our company this year.  To the technicians who attended our offices every day of the 
lockdowns to ensure we could keep delivering content as an essential service, to the 

 
4 
 
customer care operators who quickly pivoted to working from home and supported 
customers, through to our hundreds of kiwi staff who strive every day to entertain and 
delight our customers, thank you. 
During the fiscal year we were fortunate to welcome Joan Withers and Keith Smith as we 
continued the Board
 refreshment process. Joan joined the board in September 2019 and 
was re‐elected at last year’s AGM while Keith joined in April of this year. As I mentioned 
earlier, Keith is standing for re‐election today.  Both Joan and Keith have made a positive 
impact around the board table, including as Acting Chair and Chair respectively of the Audit 
and Risk Committee.  
I mentioned in my introduction that I wish formally to acknowledge the contribution of 
Susan Paterson who retires from the Board today. During her time as a director, Susan has 
served on the Audit and Risk Committee and is the outgoing Chair of our People and 
Performance Committee. We shall miss her challenge, her engagement, her collegiate 
approach and her humour.  I hope that you will join the Board in thanking Susan for her 
service to the company and wish her well in her future endeavours. 
In summary, fiscal 2020 was a tough year and there remain many challenges facing the 
company as the shape of the media sector continues to change at a rapid pace. However, 
the first quarter of the new fiscal year has delivered encouraging results, and your 
management team is determined to reinvent the business to
 be an effective competitor in 
this changing landscape. 
With that, I will now hand over to Martin.

---

1 
 
AGM SCRIPT – CEO’S REMARKS ‐ FINAL 13 OCT 
Good morning everyone.  I am Martin Stewart, and it is my pleasure to address you today.  I 
join Philip in thanking you for your support in 2020, and I also thank my leadership team and 
all of our Sky people for their hard
 work and dedication throughout the year. 
And what a year it has been. 
As Philip said, we started the 2020 Financial Year with a clear strategy, a renewed purpose 
and huge enthusiasm for the work ahead.  We set about delivering on our ambitious plan to 
transform our business, by accelerating streaming, managing costs and creating a platform 
for growth. 
In the first half of the financial year we made steady progress against our strategy, as well as 
achieving significant transformation within the business.   
And then COVID‐19 hit.   
As we reflect on the year and report to you, our shareholders, on
 how we have performed, I 
hope you will agree that we have soundly navigated the COVID‐19 challenges, and we have 
made a positive start to Financial Year 2021. 
You will have seen the details when we released our Results and Annual Report on the 10
th
 
of September, so I will only focus on the key points. 
‐ Revenue was $747.6m, which is towards the upper end of the revised guidance 
range.  We have slowed revenue loss in our satellite segment and we reported a 
pleasing 35% increase in streaming revenue. 
 
‐ Our operating profit before
 impairment was $44.9m.  As Philip mentioned, the non‐
cash write‐down in goodwill of $177.5m resulted in a reported loss after tax of 
$156.8m.    
 
‐ We have a strong balance sheet, and we generated $82.7m in free cash flow whilst 
also investing for the future. 
 
‐ And we closed 
the year with 990,000 customers, which is more customer 
relationships than Sky has ever had at year end.   We were very pleased to achieve 
significant growth of 153% in streaming customers, closing the year with 404,000.  
While those streaming numbers dropped to 315,000 by 31 August, due to the way 
we
 recognised former Lightbox customers following the Neon merger, it’s important 
to note that there was minimal revenue impact from that change due to the 
commercial arrangement we have in place with Spark for those customers.   
We are well set up to deliver on our refreshed strategy in 2021, with strong opportunities 
for growth ahead. 
Let me take you through our plan. 

2 
 
We have four key strategic pillars.  In our ‘core’ business, we are focused on growing our 
entertainment and sports streaming services while continuing to strengthen our significant 
satellite business.   
In our ‘new growth’ areas, we are launching Sky Broadband and expanding our reach into 
the global rugby market with RugbyPass. 
In the last year: 
‐ We successfully launched our new Neon service – with an attractive price point, 
superb content slate, and great user experience – and as a result we have seen our 
conversion from free trial to paid subscriptions increase by 27%.   I said at the AGM 
last year that our goal was to extend our lead as New Zealand’s premier streaming 
provider, and our refreshed Neon service has cemented our position as the leading 
local supplier of paid entertainment streaming services. 
 
‐ Our sport streaming service Sky Sport Now is making great strides – with double 
digit growth each month since live sport returned after the lockdown ended in May. 
 
‐ We are achieving better retention of our satellite customers, with churn down to 
13%, which is low by world standards, and lower still in our direct customer 
relationship at 11%.  Our Sky Go companion app is 
highly valued by our satellite 
customers, as it lets them view their Sky content on the go, and we plan to launch 
our enhanced Sky Go service in the second half of this financial year.   
 
‐ During the financial year 2020 we renewed our contract with satellite provider 
Optus, which 
will deliver a better technical solution with lower pricing and greater 
contractual flexibility to ensure we can optimise capacity and cost into the future.   
 
‐ Sky Broadband is being trialled in staff homes, and it’s going very well.  We’re about 
to extend the trial to a group of customers, with 
full launch in 2021.  Our entry into 
the broadband market will allow us to broaden customer relationships and add 
significant value to them. 
 
‐ Our acquisition of RugbyPass in August 2019 expanded our reach into the global 
rugby market and opened up new avenues for future growth.  While the current 
uncertainty surrounding the availability of international rugby has slowed progress in 
the streaming side of the business, we are progressing our plans in the audience side 
of the business and continue to see potential for future growth. 
As Philip mentioned, we undertook a significant organisational transformation in the last 
financial year,
 and as a result we are a leaner, more responsive and more collaborative 
business.  It’s never easy restructuring an organisation, and we have farewelled more than 
200 Sky team members this year.  I would like to take the opportunity to thank each and 
every one of them for their contribution 
to Sky over many years, and to wish them well with 
future endeavours. 
 

3 
 
As we implement our growth strategy in the coming year, we will continue to keep a firm 
focus on costs, a theme that you will hear regularly from us.  The faster‐than‐expected 
return of live sport following the COVID restrictions has been welcome news for everyone, 
and while it will have an impact on our operating expenses, we will continue to flex our cost 
profile in line with revenue. 
 
As we outlined at our Results presentation in September, based on our current assumptions 
regarding the sporting calendar and whilst noting there is ongoing uncertainty, we have 
raised our outlook for the 2021 Financial Year.  We now expect results of: 
 
‐ Revenue of between $660‐700m 
‐ EBITDA of between $125‐140m 
‐ NPAT of between $10‐20m 
‐ And Capex will fall within a range of $45‐55m. 
 
We are confident of our ability to navigate the ongoing impact of COVID‐19 and to deliver 
on our refreshed growth strategy. 
 
And on that note, I’m pleased to invite Bernadine back for a chat about Sky’s future.

---

Annual Shareholders’
Meeting
13 October 2020

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Sky’s Board of Directors
5
Philip Bowman
Chair and Independent Director
Geraldine McBride
Independent Director
Martin Stewart
Chief Executive and Director
Susan Paterson
Independent Director
Joan Withers
Independent Director
Mike Darcey
Independent Director
Derek Handley
Independent Director
Keith Smith
Independent Director

Agenda
Chair’s Address
Chief Executive’s Address
Formal Business - resolutions
Shareholder Questions
6

Chair’s Address

Chief Executive’s
Address

Sky delivered
results in-line with
guidance and has
entered FY21 in a
strong financial
position
1
A reconciliation between reported and adjusted figures is set out on page 33 of Sky’s FY20 Annual Report.
164.2m
EBITDA
Within guidance range
192.4m
AdjustedEBITDA
1
(156.8m)
Net loss after tax
NPAT excluding the goodwill
write -off was $20.7m, within
guidance range
41.0m
Adjusted Net profit
after tax
1
82.7m
Free cash flow
$157.3m operating cash flow
and $74.6m investing cash flow
747.6m
Revenue
At top end of guidance
range
9

And we made
good progress in
delivering on our
refreshed growth
strategy
10
21%
Improvement in satellite
net churn
With gross churn of 13% in
FY20 (15% in FY19)
35%
Increase in streaming
revenue
Through organic growth and
acquisitions
990,000
Customer relationships
1
Up 27% from 779,000 in FY19,
including a 153% increase in
streaming customers
Secured key rights
Including SANZAAR Rugby,
Netball, Supercars,
ICC Cricket, IPL,
Commonwealth Games,
BBC, ViacomCBS and more
1
30 June streaming customer numbers were 404k. At 31 August this had reduced to 315k reflecting the changed
recognition of former Lightbox customers following the Neon merger, but with minimal revenue impact due to
confidential commercial terms in place with Spark until January 2021.
Increased focus
on Streaming
Acquired and merged
Lightbox with Neon;
Acquired RugbyPass;
Launched Sky Sport Now
9points
Net Promoter Score
(NPS) improvement
Through customer-first
approach

Sky’s growth strategy pillars
Streaming
BroadbandRugbyPass
Satellite
Strengthenour significant core
business through continued reliable
delivery and enhanced value
perception
Grow our entertainment and
sports streaming business. We are
using digital innovation to improve
the customer experience and move
to a lower-cost model
Growcustomer relationships with
broadband offers differentiated
on quality, service and price
Developand grow an international
rugby content business and become
the online destination for fans
globally
11

Performance milestones
Streaming
Acquired Lightbox and successfully
launched new Neon, strengthening
position as the leading local supplier in
paid entertainment streaming
Launched Sky Sport Now and delivered
double-digit growth each month since
the return of live sport in May
12

Performance milestones
Satellite
Significant improvements in satellite
customer retention with 13% churn in
FY20 (from 15% in FY19) and lower still
for direct customers at 11%
Optus contract renewed with enhanced
technical capability, greater contractual
flexibility and at a lower cost
13

Performance milestones
Broadband
Successful Sky Broadband trials in staff
homes, and soon to be extended to
customer group
Sky Broadband on target for full launch in
2021 to broaden and add value to
customer relationships
14

Performance milestones
RugbyPass
Acquisition of RugbyPass in August 2019
expanded reach into global rugby market
and offshore revenue pools
Current uncertainty for international
sport has slowed progress in streaming
business, but continue to see potential
for future growth
15

While we remain cautious due to the continued uncertainty
regarding the ongoing impact of COVID-19, Sky expects to deliver
results for the year ending 30 June 2021 as follows:
FY21 Outlook
1
$m
Revenue660 – 700
EBITDA125 – 140
NPAT
2
10 - 20
Capex45 - 55
1
Subject to no adverse change in operating conditions, including future economic impacts flowing from COVID-19.
2
NPAT presented is prior to any non-cash adjustments
Outlook
16

Formal Business

Resolution 1
Auditor’s remuneration
That the Board be authorisedto fix the auditor’s
remuneration for the ensuing year
18

Resolution 2
Director re-election
That Keith Smith, who was appointed by the Board on
21 April 2020 and retires at the Annual Meeting, be re-
elected as a director of the Company.
19

Resolution 3
Director re-election
That Mike Darcey, who retires at the Annual Meeting
and is eligible for re-election, be re-elected as a director
of the Company.
20

Shareholder Questions

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applies to this document and the verbal or written comments of any person presenting it.
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employees, shareholders nor any other person give any warranties or representation (express or implied) as the accuracy or compl eteness of this information. To
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The Company has used the non-GAAP financial measure EBITDA and has presented adjusted results when discussing financial performance, as the directors and
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earnings before income tax, interest expense, depreciation, amortisation and impairment, unrealised gains and losses on currency and interest rate swaps.
Adjustments made to Sky’s GAAP financial measures normalised for non-recurring costs and non-cash impairments, and are describedin more detail herein. You
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22