Progress update on new Sky Box; Investor Newsletter

Sky New Zealand
PO Box 9059
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Auckland 1149
New Zealand

10 Panorama Road
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Auckland 1060
New Zealand

T. +64 9 579 9999

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13 July 2022

Progress update on new Sky Box; Investor Newsletter

Sky Network Television (NZX/ASX: SKT) advises that due to global supply chain challenges,
and in particular chipset shortages, as well as Covid related disruptions to resources and
delivery timeframes, there will be a short delay to delivering the first of the new Sky Boxes
into customer homes, from the originally planned ‘middle of the year’ to spring of 2022.
Sky’s Chief Executive, Sophie Moloney said: “I’m pleased to confirm that, notwithstanding
these challenges, technical trials of the new Sky Box are already underway with specialist Sky
crew, and wider staff trials start this week. Customer trials will follow before the precise
launch date is confirmed. The new Sky Box will deliver a transformational experience for
customers, and I look forward to revealing more of the features in the coming weeks.”
Additional information on this, as well as other recent news is included in the attached
Investor Newsletter.

ENDS

Authorised by: James Bishop, Company Secretary

Media queries to: Investor queries to:
Chris Major James Bishop
Chief Corporate Affairs Officer Company Secretary
+64 29 917 6127 +64 21 630 635
chris.major@sky.co.nz james.bishop@sky.co.nz

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Investor Newsletter
Winter 2022
Message from Sophie
Dear Shareholders
Welcome to our Winter 2022 investor newsletter. We have
just completed the financial year, and we look forward
to sharing our Results for the 2022 financial year with
you next month. In the meantime, it seems timely to
update you on some of the recent happenings at your
company as we continue to execute on the strategy.
First up, you may be aware that Sky
looked at a potential acquisition
of MediaWorks Holdings. We were
undertaking due diligence when
media speculation meant we needed
to advise the market (on 7th June)
that we were in discussions with
MediaWorks’ owners. The context
for this engagement stemmed from
the position we advised in February
of exploring opportunities to invest
capital if there was an investment
that would accelerate the growth
of the business, generate new
revenue streams, and deliver greater
shareholder returns. The strategic
rationale talked to the immediate
scale that this acquisition of radio
and outdoor advertising assets
would provide in growing Sky’s
share of New Zealand’s advertising
market, in addition to supporting
the further growth of Sky’s core
subscription business. Although
there were significant potential
cost and revenue synergies from a
combination of the two companies,
the significant change in outlook
for the New Zealand economy
and rising interest rates, together
with feedback from shareholders,
led us to the decision not to
proceed with this acquisition.
Our focus has since returned
to confirming the best options
for returning surplus capital to
shareholders (in addition to the
previously-announced return to
paying dividends) and accelerating
organic investment in the business
to drive further growth. We will
update you on our plans no later
than at Sky’s Full Year Results
announcement on 25 August 2022.
Please do note the important
information required below in respect
of our return to paying dividends!
The second area I’m keen to
update you on is in respect of our
Sky Box project. Despite the best
efforts of our teams – who have
been working tirelessly - we, like
many other businesses, are not
immune to the challenges caused
by disruptions to the global supply
chain, and in particular chipset
shortages. This does mean there
will be a short delay to getting the
first boxes into customer homes,
from the originally planned ‘middle
of the year’ to spring of 2022.
What this doesn’t mean is any
change to our focus on delivering
a transformational experience
for our Sky customers.
Please do take a look at our
update on the following page:
suffice it to say, I’m really looking
forward to revealing the features
of the new Box to you – and our
customers – in the coming weeks.
In the meantime, we continue
to deliver our unrivalled range of
sport and entertainment content
to customers across the country,
in ways that work for them. As we
commence this new financial year,
the amount of superb content we
have on offer is simply outstanding
– including All Blacks and Black
Ferns rugby, the Commonwealth
Games, the return of Premier
League to Sky next month, and
the highly-anticipated House of
the Dragon (the Games of Thrones
prequel) coming to Neon and Sky
in August, to name just a few. We
provide a snapshot on page 3.
I hope the information we share is
useful. As always, I welcome your
feedback and you can contact
me at Sophie@sky.co.nz.
I look forward to updating
you in more detail at our full
year results in August.
Ngā mihi nui (with warm regards),
Sophie

“So much more than I ever
imagined – very exciting
for Sky Customers”
“This is awesome, one
box for everything
– how cool”
“I really like that Sky
are taking onboard the
feedback and adapting
the functionality – it’s
great to be heard”
“This is a game
changer for all of us
so bring it on ASAP!!!”
Sky customers have been
involved throughout the
process - here’s what
they’ve been telling us
2
It is the most transformational
product we have launched
since we delivered MySky to
New Zealanders (with its much-
loved recording functionality) in
2007, as we reconnect with our
origin story of offering amazing
choice and ease of use to kiwis.
We have an incredibly dedicated and
diligent team working around the
clock on the new Sky Box alongside
our chosen global partners.
Yes, the timelines for delivery of
the project have been impacted
due to factors outside of our
control – including from global
chipset shortages, Covid
interruptions (to resources and
supply chains) and, more latterly,
further impacts on supply chains
caused by the war in Ukraine.
However, we are pleased to confirm
that, notwithstanding those
challenges, technical trials are now
underway with specialist Sky crew,
and wider staff trials start this
week. Customer trials will follow
before we confirm the precise
launch date, acknowledging that
we are determined to deliver the
transformational Sky Box experience
that our customers deserve.
At every stage of the project, we
have engaged with customers
to gain their feedback.
“It’s very satisfying to be building
something we’re confident
customers will love. Our voice
activated remote (powered by
Google Assistant) is a real ‘wow’
factor and we know customers
will benefit from the search
functionality which enables
them to discover content from
apps as well as Sky,” said Bridget
McNeill, Head of Product.
Fortunately, our roll-out of the
new Sky Box is scheduled in phases
(starting with our most loyal
customers), so we have some
flexibility over timing. We are
also very focused on the group
of Vodafone TV customers who
are seeking a new solution for
their Sky and free-to-air viewing
when VTV closes at the end of
September. We will ensure we
have a Sky solution for them.
The new Sky Box is a key part of
our strategy to remain the number
one sport and entertainment
provider in New Zealand and we
can’t wait to share it with you.
New Sky Box
The new Sky Box is an exciting development for those
Sky customers who are looking to transform the
way they watch their favourite content across Sky,
free-to-air and their favourite streaming apps.

3
Delivering superb content
to our customers
Sky customers are spoiled for choice this winter. It was great to have the
return of the All Blacks and Māori All Blacks to our screens this month,
with strong viewership of their opening matches against Ireland.
More than 800,000 New Zealanders
engaged with the opening round of
the All Blacks v Ireland across Sky,
Sky Go, Sky Sport Now, and free-
to-air on Prime (and that doesn’t
include the engagement on our social
channels - more on that below).
Our customers also enjoyed the
long-awaited Vodafone Warriors’
homecoming match v West Tigers
with a reach of more than 590,000
across Sky, Sky Go, Sky Sport Now
and live on Prime. Israel Adesanya’s
Middleweight UFC bout also
performed well on Pay-Per-View.
We are proud of our world-class
production for events here in
New Zealand and the impact of
our team’s storytelling for the likes
of the UFC. The latter is producing
very high levels of engagement
in social media, which means
we are drawing incremental
viewers from new audiences.
In the week that spans these
four key events, our social media
content had more than 6.4 million
views, significantly above the
average weekly result of 2.7 million
during the 2022 financial year.
Engaging with new audiences
and trying new things is a key
focus for our team. Our new rugby
league studio show ‘The Ditch’
is a good example - it is focused
on the contribution Māori and
Pasifika make to rugby league
and is attracting strong young
and diverse audiences. ‘The Ditch’
will also be watched on Fox
Sports Australia, Digicel (through
the Pacific Islands) and globally
on Watch NRL platforms.
Ahead we have more from the
All Blacks, the Black Ferns, Silver
Ferns netball, Supercars, IndyCars,
the British Open and NRL – all
of which will deliver the quality
content fans have come to expect.
The Birmingham Commonwealth
Games start in late July, and
we are proud to be delivering six
dedicated channels on Sky and
substantial free-to-air coverage
on Prime for this special event.
And the Premier League returns
to Sky in early August, with all 380
matches on Sky, Sky Go and Sky
Sport Now, and we know this is
eagerly awaited by football fans.
Our exceptional entertainment
offering continues to perform
strongly and we eagerly anticipate
the launch of “House of the Dragon”
next month, and – for those of you
in New Zealand – we invite you to
watch out for something special
to celebrate this highly anticipated
series during the All Blacks’ third
test at Sky Stadium on 16 July.
Hot on the heels of House of
the Dragon we will also see the
return of the highly-anticipated
Handmaid’s Tale, so there is
certainly an incredible array of sport
and entertainment on offer for
our customers – across all of our
services in the coming months.

4
Return to paying dividends
– important information!
At our half year results in February, Sky’s Board
announced that it will return to paying dividends
from the end of the 2022 financial year, with the first
dividend expected to be payable in September.
This followed a strong half year result with
a return to revenue growth for the first time
in six years, continued growth in customer
numbers and a return to sustainable levels of
free cash being generated by the business.
To receive your dividend payment, we must have
your bank account details – or more specifically, our
registry provider (Computershare) must have them. In
the past some shareholders have received dividends
via a cheque, however this is no longer an option.
> Please visit Computershare’s Investor Centre portal
www.investorcentre.com/nz to check your payment
details are correct - this will enable future payments
to be credited directly to your account. If you do not
have an existing login, you will need your Common
Shareholder Number (CSN) or holder number and
FASTER Identification Number (FIN) to register.
> And while you are there, if you haven’t already
done so, we would welcome your support
to reduce Sky’s environmental footprint by
opting to receive communications via email.