Annual Results June August 2002

Results Summary $ million % Change Revenue % Operating Expenses % EBITDA % Depn & Amort % EBIT (19.7)(4.8)(76%) Interest % Other 1.3(1.3)(200%) Net Loss after Tax (42.3)(30.2)(29%)

Subscriber Growth ‘ % Change UHF Residential (15%) DBS Residential % DBS Wholesale Commercial % Total Subscribers %

Full Year Subscribers Full Year Subscribers

Pay Television Penetration Australia22% Australia22% France 32% France 32% New Zealand36% New Zealand36% United Kingdom41% United Kingdom41% Finland45% Finland45% Germany 70% Germany 70% United States81% United States81% Switzerland83% Switzerland83% BeNeLux95% BeNeLux95%

Moving Annual Net Churn Moving Annual Net Churn

Moving Annual Gross Churn Moving Annual Gross Churn

Total Revenue Total Revenue CAGR 16%

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

Advertising Revenue Advertising Revenue CAGR 22%

Programming Costs as a percentage of revenue

EBITDA EBITDA CAGR 16%

Capital Expenditure (excluding Transponders)

Net Profit/(Loss) Net Profit/(Loss)

Second Half Comparison $ million 2 nd Half 01 2 nd Half 02 % Change Revenue % Operating Expenses % EBITDA % Depn & Amort % EBIT (11.1)(2.6)(77%) Interest % Other (67%) Net Loss after Tax (22.8)(17.0)(25%)

2002 Operating Cash Flow $ million % Change Net Loss after Tax (42.3)(30.2)(29%) ADD Depn & Amort % Loss on Football Kingz % Working Cap Dec/(Inc) (12.4)(10.7)(14%) Other (34%) Net Operating Cash Flow %

Free Cash Flow $ million % Change Net Operating Cash Flow % Net Investing Cash Flows (140.7)(114.2)(19%) Free Cash Flow (96.8)(37.2)(62%)

Impact of Football Kingz $ million As Reported Adjusted for Kingz Net Loss after Tax (30.2)(25.7) Net Operating Cash Flow $m Kingz After Tax Loss 1.8 Loss on Disposal 2.0 Goodwill Amortised 0.7 Total4.5

Funding n $111m of Capital Notes raised October 9.3%. Election date October 2006 n Bank Facility $225m, drawn to $157m. Margin is 50bp Bank Facility repayable March 2004 Bank Facility repayable March 2004

Tax n Tax losses carried forward of $110m n Tax Asset not recognised n Approximately $58m of losses to be offset by INL n INL to repay cash to SKY when tax is due ie $58mx 33% = $19.1m

Foreign Currency Hedging 84% hedged for 2002/03 $US 84% hedged for 2002/03 $US 20% hedged for 2003/04 $US 20% hedged for 2003/04 $US 88% hedged for 2002/03 $Aud 88% hedged for 2002/03 $Aud 17% hedged for 2003/04 $Aud 17% hedged for 2003/04 $Aud

Expense Analysis $ million % Change Programming % Subscriber Management % Transmission (61%) Selling, General & Administration (0.5%) Depreciation & Amortisation % Football Kingz % Total Operating Expenses %

Capital Expenditure Analysis $ million % Change Transponder Lease % Subscriber Equipment (34%) Digital Expansion (82%) Interactive Applications % Right of renewal % Other (15%) Total Capital Expenditure (20%) Subscriber Acquisition Cost (DBS) $815$680(17%)

Industry Strategic Consolidation TVNZ on SKY Digital Platform TVNZ on SKY Digital Platform TelstraClear wholesale distribution agreement TelstraClear wholesale distribution agreement SKY re-sold on TCL network SKY re-sold on TCL network SKY exclusive procurer of TCL programming SKY exclusive procurer of TCL programming 7 year term 7 year term Telecom Telecom Expires March 2003 Expires March 2003

2002 Key Messages Net loss reduced by 29% to $30m Net loss reduced by 29% to $30m Operating cash flow up 75% to $77m Operating cash flow up 75% to $77m Negative free cash flow reduced by $60m to $37m Negative free cash flow reduced by $60m to $37m Subscriber numbers up 17% to 503k. Subscriber numbers up 17% to 503k. ARPU up 4% to $50.51, DBS ARPU up 2% to $55.46 ARPU up 4% to $50.51, DBS ARPU up 2% to $55.46 Churn down 16% to 11.7% (Net) Churn down 16% to 11.7% (Net) Subscriber acquisition costs reduced by 17% to $680 Subscriber acquisition costs reduced by 17% to $680