Stan Investor Briefing

STAN INVESTOR BRIEFING

SYDNEY, 26 October, 2016: Nine Entertainment Co. (“Nine”) [ASX:NEC] and Fairfax Media Limited (“Fairfax”) [ASX:FXJ] will today hold an investor briefing on their jointly-owned subscription-video-on-demand business, Stan.

Stan CEO Mike Sneesby will present to investors in Sydney at 3pm. The accompanying slides are attached.

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Contacts:

Nine Entertainment Fairfax Media Nola Hodgson Brad Hatch Head of Investor Relations Director of Communications +61 2 9965 2306 +61 2 9282 2168 [email protected] [email protected]

Victoria Buchan Director of Communications +61 2 9965 2296 [email protected]

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INVESTOR BRIEFING

26 October 2016

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2 PAGENINE TITLE ENTERTAINMENT CO.

Placeholder for HM

Conﬁdential 3 Australia’s No. 1 masthead across all platforms Australia’s fastest growing online real estate business Australia’s leading local SVOD platform

Creating shareholder value by developing and building on core strengths, delivering publishing transformation, and investing to build-out new revenue streams. AUSTRALIA’S SVOD SUCCESS STORY

World Australian class market differentiated dynamic content proposition

Strategic alignment of shareholders

5 AUSTRALIA’S SVOD SUCCESS STORY

World Australian class market differentiated dynamic content proposition

Strategic alignment of shareholders

6 SUBSCRIPTION TV MARKET SVOD provides great value for money in the subscription TV category

Premium Pay TV Skinny Bundles Subscription VOD

•Cable/ Satellite Television •OTT service with puck •OTT service with set-top box device •VOD for entire catalogue •Linear channels with •Linear channels with catch-up VOD catch-up VOD •Affordable price for entire library of box sets and •High priced bundles •Low entry price with movies limited content offering Estimated average monthly $80-95 $30-$40 $10-$15 cost

Australia

7 AUSTRALIAN SUBSCRIPTION TV MARKET SVOD complements PayTV and multiple SVOD subscriptions drive growth of the category

Premium Skinny Pay TV Bundles 2.8M Subscriptions

Subscription VOD 8M+ Subscriptions

Note: Estimated market size at maturity phase of the category

8 MARKET PENETRATION AT SAME STAGE Faster market growth favours local players Household Penetration

Data Source: Netﬂix, Nielsen, Leichtman Research Group, Stan estimates 9 DRIVERS OF ACCELERATED GROWTH Category awareness, broadband speed and available viewing platforms accelerate growth

Increasing global category awareness

Increasing broadband speed and capability

2007 2008 2009 2010 2011 2012 2013 2014 2015

SVOD Netflix US Netflix UK Stan, Netflix Australia Launch Launch Launch

10 TECHNOLOGY DRIVING SVOD GROWTH SVOD platforms and broadband speed in Australia growing fast

Average Broadband Speed (mbs) Tablet Penetration (%) 9 50 6.75 37.5 4.5 25 2.25 12.5 0 0 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016

SmartTV Penetration (%) Smart Phone Penetration (%) 40 90

30 67.5

20 45

10 22.5

0 0 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016

Data Source: OzTAM, Akamai 11 AUSTRALIA’S SVOD SUCCESS STORY

World Australian class market differentiated dynamic content proposition

Strategic alignment of shareholders

12 STRATEGIC CONTENT POSITIONING Stan’s strategic Network, Studio and original programming is highly differentiated

US/Global Networks

7 0 0 4 0 0 9 3 0 1 2 1 1 0 0 5 1 1 Other/Indies 6 13 0

Premium Pay TV & Skinny Bundle SVOD

Notes: Fox, CBS, Disney, NBC Universal with pay TV or free to air; amazon conﬁrmed global deals with Australian rights 13 DIFFERENTIATED CONTENT PROPOSITION Stan has a unique content proposition for the Australian market

Focus on Netflix •Showtime output • •Amazon Originals deal Originals •First run shows •Best of US/UK studios and networks •Stan Originals $8.99 SD, 1 Stream

$10 $11.99 HD, 3 Streams HD, 2 Streams TBC

$14.99 UHD, 4 Streams

14 AUSTRALIA’S SVOD SUCCESS STORY

World Australian class market differentiated dynamic content proposition

Strategic alignment of shareholders

15 STRATEGIC ALIGNMENT OF SHAREHOLDERS Content and Marketing Synergies with Nine and Fairfax

Marketing Content synergies synergies with with Nine Fairfax and Nine

Acquisition of content Mass market consumer from networks and reach through studios shareholder assets

Original productions

16 AUSTRALIA’S SVOD SUCCESS STORY

World Australian class market differentiated dynamic content proposition

Strategic alignment of shareholders

17 18 SUBSCRIBER GROWTH ON PLAN CashPAGE break-even TITLE projected in FY18

2.1m 3.1m 4.5m

19 SIGN-UP RUN RATE IS ACCELERATING CurrentPAGE run rateTITLE at 200% year-on-year

20 CHURN IS DECLINING ConversionPAGE toTITLE paid continues to increase

Cumulative churn month 1-4, (%)

21 ENGAGEMENT IS INCREASING ViewingPAGE increased TITLE 3x year-on-year and more than 112% per subscriber

22 STAN INTEREST GROWING FASTER THAN CATEGORY SearchPAGE queries TITLE for Stan continue to experience strong growth trajectory

Data Source: Google Trends 23 BRAND METRICS ARE POSITIVE Current campaign drives trust and consideration

The Stars Content Down

International Original Series Stars Stars

Everybody needs to be on Stan: I’m with Stan Broad endorsement of Stan

Viewer Up The People Local Stars/ Everyday Celebs Australians

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