Sky Investor Day presentation

Sky New Zealand
PO Box 9059
Newmarket
Auckland 1149
New Zealand

10 Panorama Road
Mt Wellington
Auckland 1060
New Zealand

T. +64 9 579 9999

sky.co.nz










Sky Investor Day presentation

29 June 2021

Sky will hold a virtual investor day event today, beginning at 9:00am and concluding at
approximately 12:00pm (NZST). A copy of the presentation material is attached.

Investors and analysts are warmly encouraged to register for the event. Details on how to
participate are as follows:

• Live via video webcast (please note registration is required beforehand):
https://globalmeet.webcasts.com/starthere.jsp?ei=1454703&tp_key=852d942654

• Live via teleconference: Please join the teleconference 5-10 minutes prior to the
start time.

Click to join

Simply Click to join here and enter your information to be connected. Note: the link
becomes active 15 minutes prior to the scheduled start time.
Prefer to dial in? Participant Passcode: 706651
If your country is not listed above, please contact us prior to the event at
investorrelations@sky.co.nz to make additional arrangements.

ENDS

Authorised by: James Bishop, Company Secretary

For further information, please contact:
Chris Major
Director of External Affairs
+64 29 917 6127
chris.major@sky.co.nz

Investors can also submit queries to: investorrelations@sky.co.nz

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1
29 June 2021

2

Our
Strategy
Our
Customers
Our
Content
Streaming
Customers
Sky Box
Customers
Sky
Broadband
Sky Fan
Experience
New Sky
Box
Our
People
Financial
Performance
Summary

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•

5
Stabilising Sky Box
customers and returning to
growth, including through
the new Sky Box
Continuing to deliver the
content that matters to
customers
Investing 50-60% of capex in
growth initiatives by FY24
Growing revenue by
$75-$100m+ p.a. by FY24
Maintaining capex within a
long term average of
7-9% of revenue
Maintaining positive free
cash flow throughout
Achieving annualised non-
programming opex saving of
$10-$15m p.a. by FY24
Growing Neonand Sky Sport
Now customers by
10% –15% CAGR

Presentation team
Our Strategy
Sophie Moloney
Our Customers
Maria Barlow-Cooper
Our Content & PartnershipsStreaming Customers
Ricki Taiaroa
Sky Box Customers
Corrie Labuschagne
Sky Broadband
Daniel Kelly
New Sky Box
Bridget McNeill
Our People
Michael Frampton
Financial Performance
Andrew HirstPhilip Bowman
Jonny Errington
Chair

Sky continues to bring New Zealanders choice and ease
of viewing with the ultimate aggregator play

Maria Barlow-Cooper
01.02.03.
How our data
and insights
toolkit supports
greater
customer-
centricity
What the data
is telling us
about existing
and potential
customers
How insights are
informing our
customer life-
stage
opportunities
Our
Strategy
Our
Customers
Our
Content
Streaming
Customers
Sky Box
Customers
Sky
Broadband
Sky Fan
Experience
New Sky
Box
Our
People
Financial
Performance
Summary

1/3
rd
of all NZ households are Sky Box customers and
another 1/3
rd
are open to becoming customers
1
•
•

The largest population growth to come is in the 65+
age groups
•
•
•
2010
2010
MaleFemale
80+
75-79
70-74
65-69
60-64
55-59
50-55
45-49
40-44
35-39
30-34
25-29
20-24
2030
2030

We must continue to serve existing customer strongholds
while extending appeal to a wider audience
•
•

Our SkyNation panel connects us to valuable
customer feedback

We’ve transformed our wealth of data into rich insights
with Dot Loves Data’s help

Life-stages influence customer preference and our
engagement strategy

We understand how to acquire, grow, nurture and retain
customers in each segment

There is significant opportunity
A large proportion of NZ
households are still open to Sky,
representing a significant
opportunity for future growth
Evolving our offering to meet the
needs and expectations of an
increasingly diverse New Zealand
will be key to realisingour growth
opportunity
Combining the strength of the
bundle and partnerships with
affinity brands will create an
'UltimateAggregator' position for
Sky -the antidote to consumer
frustration around an increasingly
fragmented streaming landscape

Jonny Errington
Changes in the
content
landscape
Sky’s
positioning
within the New
Zealand market
Decisions
thatdeliver
value for
customers and
Sky
Our
Strategy
Our
Customers
Our
Content
Streaming
Customers
Sky Box
Customers
Sky
Broadband
Sky Fan
Experience
New Sky
Box
Our
People
Financial
Performance
Summary

Our data driven approach lets us understand the
value of content

Using data tools to determine non-renewal impact
–Sport X
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•

The changingcontent landscape
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•

The power of the bundle sets us apart, providing a one
stop shop for customers
•
•
•
•

Sky is a content business
•
•
•
•
•
•

Exciting, newly expanded partnership with NRL and NZRL
•
•

The appeal of Sky's partnership with benefits model
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•
•

3 Year Targets
Content availability
Content rights
Programming costs

01.02.03.
Our
Strategy
Our
Customers
Our
Content
Streaming
Customers
Sky Box
Customers
Sky
Broadband
Sky Fan
Experience
New Sky
Box
Our
People
Financial
Performance
Summary

-115.0
-95.0
-75.0
-55.0
-35.0
-15.0
5.0
25.0
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
Embracing the best of Sky delivered in a different way
•
•
•

Neon has continued to strengthen its market position
since launching the merged platform
•
•
•
Monthly Active
Engagement
1
Average Tenure
(months)
2
Paid Subscriber
Growth

Data-powered content discovery is growing audience
engagement and retention
‘Retain and winback’
‘Stimulate and broaden’
‘Grow the audience’
We’ve automated
the identification,
stimulation and
retention of
customers

Growing engagement and retention for ‘A Discovery of
Witches’ audience
‘Retain and winback’
‘Stimulate and broaden’
‘Grow the audience’
Discovery of Witches (DoW) viewership
DoW audience: viewership of top three recommended affinity shows
•
•

Data-led scheduling maximises support for key content
adaptive releases for our ‘Drama Lovers’

Sky Sport Now delivering sustainable growth in new
customer pools
•
•
•
Paid Subscriber
Growth
Average Tenure
(months)
2
Weekly Active
Engagement
1

Using data driven agility to grow customers and increase
fan engagement
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•
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•
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•

3 Year Targets
Maintain strong engagement
1
for Neon / Sky Sports Now
Increase customer tenure
1
for Neon & Sky Sports Now
Grow Neon and Sky Sport
Now customers
Grow total Streaming revenue

Corrie Labuschagne
01.02.
How we are
stabililsing the
Sky Box
customer base
How Sky is
unlocking
value to drive
retention and
acquisitions
Our
Strategy
Our
Customers
Our
Content
Streaming
Customers
Sky Box
Customers
Sky
Broadband
Sky Fan
Experience
New Sky
Box
Our
People
Financial
Performance
Summary

The Sky Box customer base is stabilising
•
•
•
•
30.0
40.0
50.0
60.0
70.0
80.0
90.0
-
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0

Recent initiatives are supporting continued stabilisation
•
•
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•

How Sky is improving retention through cost effective
strategies
•
•

Our approach to activating new customer acquisition
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Conversion
on inbound
Increase in outbound
incremental ARPU
Increase in digital
sales contribution

3 Year Targets
Sky Box customers
stabilised and returned to
growth
Sky Box revenue stabilised
Annualised Sky Box
customer churn

Daniel Kelly
01.02.03.
Our
Strategy
Our
Customers
Our
Content
Streaming
Customers
Sky Box
Customers
Sky
Broadband
Sky Fan
Experience
New Sky
Box
Our
People
Financial
Performance
Summary

We used a deliberate, phased approach to exceed
customer expectation
•
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Using a partnerships model to deliver Sky Broadband
provides a high quality experience with lower fixed cost
•
•
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•
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•

We built our value proposition using a ‘non-telco’ approach
‘Hassle free setup and use’
‘Good honest Value’
‘Deserving of the Best’
‘Showing the love’

Innovative service is delivered through a hybrid model

Data and insight driven marketing strategy with
responsive reporting
•
•
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•

How we are doing -early response
1

3 Year Target
Attachment rate to Sky
Box customer base
Market share

Sophie Moloney
Chief Executive
Our
Strategy
Our
Customers
Our
Content
Streaming
Customers
Sky Box
Customers
Sky
Broadband
Sky Fan
Experience
New Sky
Box
Our
People
Financial
Performance
Summary

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What if you could see your WiFi?

1. My Wave Limited has provided, and is continuing to provide, services and software to Sky
Network Television Limited in relation to The Wi-Fi Guy and the proposed new Sky fan
experience.Geraldine McBride is a director of both Sky Network Television Limited and My Wave
Limited.
Introducing WiFiGuy

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•
Where else could this technology lead us?

We also see exciting opportunities in:
•
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A new Sky fan experience emerges

56
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Concept Digital Collectibles
Our next steps to revolutionise the Sky fan experience
“This is an incredibly exciting opportunity that will allow fans to be
connected to our game and our club like never before.Growing fan
experience and supporting deeper engagement at home and at the
park is a massive opportunity and Sky have really captured the
potential of the digital realm with this initiative.”
Rob Croot, Vodafone Warriors Chairman

Technology transformation and additional capability is
delivering a more nimble Sky
•
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•
Then
FY17
Now
FY21
Future
FY24

Bridget McNeill
01.02.03.
Our customer-
led approach to
designing Sky’s
new box
The product
proposition
and
experience
How we will
deliver on
success
Our
Strategy
Our
Customers
Our
Content
Streaming
Customers
Sky Box
Customers
Sky
Broadband
Fan
Experience
New Sky
Box
Our
People
Financial
Performance
Summary

Over 6000 conversations with New Zealanders
informed our design
•
•
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•

Our customers want a connected entertainment experience
•
•
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•

Sky’s new entertainment hub is the solution
PersonalisationDiscoveryMulti-devicePerformance

Our new Sky box will deliver a market-leading experience
for customers
content
based on what
you’ve watched
for everyone in the
family

New Zealanders responded positively to the benefits
Sky’s new Box will bring

We will build the new Sky Box with our partners’ help
•
•
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•
✓
✓
✓
✓

The foundation for the new Sky Box infrastructureis
already there
•
•
•
•
Satellite TV
channels
Digital
Platform
Customer
management
On demand
Metadata
Analytics

3 Year Target
New Sky Box In New
Zealand homes

Michael Frampton
01.02.03.
Our new
operating model
Measures for
success
Our Priorities
Our
Strategy
Our
Customers
Our
Content
Streaming
Customers
Sky Box
Customers
Sky
Broadband
Fan
Experience
New Sky
Box
Our
People
Financial
Performance
Summary

•
•
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•
1. Modelis indicative and does not reflect organisational structure
An operating model
1
with customers front and centre

Our new People Strategy is driving engagement, which
underpins performance
Engagement is rising
LeadershipCulture

We’re right-sizing, right-skilling and right-focussing
Enablement
Culture
Alignment
Leadership
Development
New Operating ModelCultureWork EnvironmentTools for Productivity
Leadership and Capability

Andrew Hirst
01.02.03.
Revenue
stablisationand
growth
Costs
management
and capex
investments
Outlook for key
financial metrics
Our
Strategy
Our
Customers
Our
Content
Streaming
Customers
Sky Box
Customers
Sky
Broadband
Fan
Experience
New Sky
Box
Our
People
Financial
Performance
Summary

Core revenues stabilised, with growth from existing and
new business
1. Basis of FY21 guidance provided on 3 February 2021. 2. Streaming consists of Neon, Sky Sport
Now, Retransmission and RugbyPass
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Revenues continue to diversify; proven ability to launch
new offerings
•
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Programming costs largely locked in for next 2-3 years, targeting co-
exclusivity savings and further non-programming cost savings
1.Basis of FY21 guidance provided on 3 February 2021
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Continue to deliver cost efficiencies as we move to a new,
leaner operating model
•
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1. Forecast 2. Non-programming operating costs
FY18FY21FY24
1

We continue to move towards a capital-light model, and focus our
investment in areas that enhance and grow revenue
Grow
Enhance
Maintain

Summary –outlook for key financial metrics
1.Basis of FY21 guidance provided on 3 February 2021
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Sophie Moloney
Chief Executive
Our
Strategy
Our
Customers
Our
Content
Streaming
Customers
Sky Box
Customers
Sky
Broadband
Fan
Experience
New Sky
Box
Our
People
Financial
Performance
Summary

Nurturing and growing Sky Box and
Streaming customers
Growing revenues and reducing
operating costs
Being the preferred partner for key rights
holders, content creators and
distributors
Being a place where our crew are
empowered to do their best work
THE ‘BEDROCK’ OF OUR BUSINESS
Rapid and sustained execution and
enabling our people to succeed
Being efficient, adaptive and profitable
business
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2
3
4
1. Excluding broadband. 2.By FY24. 3. Excluding broadband and net of inflation
OUR FOCUS AREAS
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2

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81

•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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information on the underlying performance of the Company. EBITDA is defined by the Company as earnings before interest expense, income tax, depreciation, amortisationand
impairment, and unrealisedgains and losses on currency and interest rate swaps. You should not consider this in isolation from, or as a substitute for,the information provided in the
unaudited consolidated financial statements for the six months ended 31 December 2020, or the audited consolidated financial statements for the year ended 30 June 2020, which are
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