Sky Italia – Harvard Business School th Milan, 15 July 2015 Gomorrah 5 • Serving 21 million Sky customers in five countries 21 million

• Shared ethos of increased choice, better content £11 billion and superior TV experience Countries Customers

• Leveraging best-in-class capabilities £4.6 billion Revenue

• Substantial opportunity

Content • Good for customers and shareholders 31,000 investment

Employees

30

2 Main sites Subscribers Revenues EBITDA Employees

Source: Company data for FY14. Financial data as reported in BSkyB full year results announcement 3 • €18 billion: investments in Italian economy

• €32 billion: direct and indirect effects on Italian economy produced by investments

• c. 4.000 Sky Italia employees, with a broader employment impact estimated at 13,000 workers

4 DTH IPTV

OTT DTT 5 5 Partnership Sky – Telecom IPTV 2.0

• Mirroring DTH offer and experience with IPTV offering delivered via TI broadband/ ultra-broadband network

• Identified 1m+ prospects without access to satellite

• Targeting 3.5m TI BB customers who do not have Sky

• Live from April 2015 and already starting to show some momentum

6 • Launched April 2014

• Pricing options in two packs: – series €9.90, cinema €19.90

• Sport TVOD

• Opening up new market segments (young, heavy digital users) and resonating strongly with customers

• Live events and original production driving appeal (X Factor, Gomorrah)

• In May launched Sky Online TV Box, a new way to watch Sky Online content on TV 7 • Cielo launched in 2010 and SkyTG24 launched in 2015

• Consistent with objective to capture all growth opportunities in the TV landscape

• Strength in FTA supports pay TV strategy:

– Ability to cross promote pay TV offering

– Provides second monetisation window for original productions

• Create ability to purchase content rights even when FTA visibility is mandatory

8 Great Content Innovation Focus on Customer

9 Sport season 2015/2016

PROPERTIES FOOTBALL

• Unbeatable offer of live football next SERIE A WITH 132 EXCLUSIVE EXCLUSIVE EXCLUSIVE EXCLUSIVE MATCHES year including exclusivity of 132 Serie A matches and all Serie B matches

EXCLUSIVE EXCLUSIVE EXCLUSIVE EXCLUSIVE

PROPERTIES OTHER SPORTS • F1 and MotoGP engines will continue to roar on Sky

EXCLUSIVE • Next year events include Rugby World Cup and EuroBasket 2015

EXCLUSIVE

EXCLUSIVE 10 ’s leading movies service

• Exclusive deals with 4 out of 6 Hollywood majors – Disney, , Paramount and Sony • Excellent movie offer with over 2,000 titles per year – 4x more movie premieres than competition • Strong Italian movies offering plus original production • 12 HD channels and successful use of pop-up/event channels:

– Bond channels, Oscar channels, , Monsters Attack, Christmas channel, Disney Princess • All movies in HD, and available on

• Over 70% of customers take movies proposition – Thor among highest level in pay TV industry 11 • Widening offer with branded channels in key Sky Branded Channels & Original genres Productions as key differentiators • is only pay channel in the world to show exclusive franchises such as: – X-Factor, Italia’s Got Talent, Masterchef, Masterchef Junior, Hell’s Kitchen • Exclusive agreement with HBO – backbone of • Creating successful track record in original commissions • No 1 Arts channel in Italy • Exclusive deal with Fox giving strong portfolio: – FOX, , Fox Crime, Fox Animation, , Nat Geo, , ) 12 Examples of recent home-grown productions:

• Gomorrah distributed in over 100 countries all over the world. 1992 presented at the Berlin Festival and simultaneously aired in the five countries in which Sky operates

Upcoming projects:

• and Diabolik – La Serie. Two projects accounting for over 40-million-worth estimated investments in Italy

Sky Arts Production Hub to be based in Milan

• Sky’s first European project meant to increase the value of excellences from the various territories.

13 2006 2012 2014 –

2003 2010 2013 2015

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