The Jungle Book

Stephen van Rooyen Chief Executive Officer – UK & ROI

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This document contains certain forward looking statements with respect to the Group’s financial condition, results of operations and business, and our strategy,

plans and objectives for the Group. These statements include, without limitation, those that express forecasts, expectations and projections, such as forecasts,

expectations and projections in relation to new products and services, the potential for growth of free-to-air and pay television, fixed line telephony, broadband and

bandwidth requirements, advertising growth, DTH and OTT customer growth, On Demand, NOW TV, Sky Go, Sky Go Extra, Sky+ HD, Sky Q, Sky Store, Sky Online, mobile,

Multiscreen and other services penetration, revenue, administration costs and other costs, advertising growth, churn, profit, cash flow, products and our broadband

network footprint, content, wholesale, marketing, synergies and integration, and capital expenditure.

These statements (and all other forward-looking statements contained in this document) are not guarantees of future performance and are subject to risks,

uncertainties and other factors, some of which are beyond the Group's control, are difficult to predict and could cause actual results to differ materially from those

expressed or implied or forecast in the forward-looking statements. These factors include, but are not limited to, the fact that the Group operates in a highly

competitive environment and faces competition from a broad range of organisations, the effects of laws and government regulation upon the Group's activities, the

fact that the Group’s business is based on a subscription model and its future success relies on building long-term relationships with its customers, its reliance on a

complex technical infrastructure which is subject to risk of failure, change and development, failure of key suppliers, the Group’s exposure to financial market risks, the

fact that the Group must protect its customer and corporate data and prevent breaches of security, risks inherent in the implementation of large-scale capital

expenditure projects, the fact that the Group relies on intellectual property and proprietary rights which may not be adequately protected under current laws or

which may be subject to unauthorised use and the fact that people at Sky are critical to the Group’s ability to meet the needs of its customers and achieve its goals

as a business.

Information on the significant risks and uncertainties is provided in the “Principal risks and uncertainties” section of Sky’s Annual Report for the full year ended 30

June 2016. Copies of the Annual Report are available from the Sky plc web page at www.sky.com/corporate and in hard copy from the Company Secretary, Sky plc,

Grant Way, Isleworth, Middlesex TW7 5QD. All forward looking statements in this document are based on information known to the Group on the date hereof. The

Group undertakes no obligation publicly to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

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• Sky UK&I has a track record of leading change in Europe’s most dynamic market

• We have the right building blocks to maintain our position as market leader

• We are an incredible market challenger, and will continue to enter new markets

successfully

4

5 Source: TV market Ampere (includes pay TV and Advertsing), Telecoms Ofcom

TV & Telecoms market in top European countries

€49bn

TV

1.5

2.0

Telecoms

TV households 42m 28m 25m 18m 27m

29

20

25

14

19

11

16

8

14

5

€39bn

€30bn

€24bn

€19bn

Per household spend €1,815 €929 €1,071 €960 €1,056

6

1998 2007 2010 2012

Launch of Sky

Digital Talk Talk

founded

NTL and

Telewest

merge to

form Virgin

Media

Youtube

launches

LoveFilm

grows

Setanta launches Premier League

games

BBC iPlayer launches

2003 2006

Netflix

launches

in the UK

ESPN

launches in

the UK

With

Premier

League

games

2014

Amazon

Instant

Video

launches

Sky Digital Virgin Media Talk Talk Netflix ESPN

Youtube

2013

BT Sport

launches

with

Premier

League

games

BT Sport

Lovefilm

Setanta

Amazon Instant Video

Freeview

launches

2002

Freeview

Freesat

launches

2008

Freesat

BBC iPlayer

2001

ITV Digital

ITV Digital

and ITV

Sport

launches

7 Source: Ofcom, GfK, IHS, Ampere Analysis, Mediabug, Now TV Tech Tracker, Statista, SPG modelling

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Smartphone

Tablet

Smart TV

TV streaming device

Connected games console

Broadband penetration

Penetration of select video media hardware, UK, 2007-2016

8

2001

2006

2012

2016

Year Product

Sky+

Sky HD

Sky Go

On Demand

NOW TV

Sky Q

NOW TV Combo

Achievement

Highest penetrated PVR

Created HD market

UK’s first OTT service

Most used On Demand service

Highest penetrated smart device

Best TV Viewing experience

First No Contract triple play

9

Sky+

Sky Player streaming

1999-2004 2007-2009 2005-2007 2011-2012 2010-2012 2013 2014 2015 2016

Sky+ HD On demand

Sky Go

NOW TV

Box sets

Buy and Keep

Sky Q

Sky Kids

Sky Store

Catch up TV

Broadband NOW TV hybrid box

Sky Anytime Interactive

Mobile TV

Sky+ app

3D

NOW TV Box

Sky Go Extra

Sky Adsmart

Sky+ UI Fibre

Sky Advance launches

Virtual Reality

Product

Development Technology Service

capability Infrastructure

10

Products (millions)

Customers (millions)

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

Revenue (billions)

2012 2013 2014 2015 2016

10.6

11.2

11.5

12.0

12.4

28.4

31.6

34.8

38.0

40.4

£6.6

£7.0

£7.4

£7.8

£8.4

11 Source: Ofcom/GfK – Digital Day 2014, Aug, Base: Adults 16+ (1,644); and Digital Day 2016, Base: Adults 16+ (1,512)

50%

36%

67%

55%

82% 83%

16%

12%

17%

21%

12% 12%

7%

13%

7%

7%

3% 2%

6%

20%

3%

9% 13%

6%

5% 6%

2% 2%

8% 14%

2%

16-24 35-44 65+

Live

Recorded

Free on demand

Paid on demand

DVD / Blu-ray

Online clips

Proportion of time spent watching by type

12

13

The

Number 1

in Sport

The best

and most

complete

movies

service in

the world

The

broadest

range and

highest

quality

basic

content

The

greatest TV

viewing

experience

1. 2. 3. 4.

Serve the

whole

market

5.

14

The biggest and broadest offer in market today

Football Golf Motorsport Cricket And more…

15

SHOW SKY Q IDRIS ADVERT SHOW SKY SPORTS PROMO

16

Barclays Premier League

We have the winning model to lead in sport

• Depth and breadth creates optionality

• Rights acquisition experience coupled with data and analytics

• Rolling rights provide certainty and control

• Diversified monetisation of rights

• Rights are not a zero sum game when you have scale

• Consumers consider the price of sports in the round

Barclays Premier League

17

Sky Sports is rated well ahead of our

competitors on key metrics

Sky Sports is the leading broadcaster, and is expanding its reach

Sky Sports continues to grow its reach

across all platforms

+42%

73%

Sky

Leading broadcaster of my favourite sports

Individual Reach

Aug 14 Aug 16

Source: Sky Sports customers

Sky Sports Reach – based on Unique users of Sky Sports websites / channels

18

More Choice, More Flexibility, Highest Quality, Great Value

Over 1,200 Movies on Demand Home of Franchises A Premiere a Day

19

SHOW SKY Q IDRIS ADVERT SHOW SKY CINEMA PROMO

20

Sky Cinema is still growing – over 20 years after launch

• Business continuing to grow

• Biggest movies service in Europe

• Combination of product and content

innovation delivering enhanced value

for our customers

Sky Cinema Subscribers

4 hrs

28 min

+7%

2013 2014 2015 2016

21

Sky’s basic channel portfolio provides something for everyone

The home of

music, arts and

culture

World-class, cinematic

and immersive story-

telling

The home of

utterly intriguing

drama

The home of fresh,

exhilarating family

entertainment

Sport for everyone Keeping you up to date with

the latest sporting news

First for breaking news

50+ £20

For just

per month

22

Sky’s original productions provide us with flexibility and are reaching scale

Source: As many original series as Netflix pa based on scripted and unscripted series, per THR research, Sept 2016

Scale

As many Original Series

as Netflix pa

50+

Flexibility

Creative Marketing Growth

23

Sky offers unrivalled choice from a range of partners

new pay exclusive series

per month from Sky &

partner channels

New series added

every month

Long-term partnerships in place

High quality scripted

drama and comedy

General

entertainment

Documentaries

and Nature

Kids

24

SHOW SKY Q IDRIS ADVERT SHOW ENTS PROMO

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We have built a winning model

The Market leading

connected PVR

Market Leading TV

Anywhere Market Leading

On Demand Library

Market Leading User Interface

Market leading Quality

26

We have repeatedly delivered the best TV viewing experience

Best set-top Box 2013, 2014 & 2015

Streaming

Service of

the Year 2016

Best Buy 2015

Best subscription

PVR 2005

Best Buy 2014

No. 1 gadget 2003

Sky+ Sky+ HD NOW TV Sky Q

Best Buy 2014

Best Buy 2015

T3 2016

Best Set-top Box &

Subscription PVR 2016

27

Sky Q is the next-generation home entertainment system

• Bringing popular services to the living room

• Your favourite content on every device and every TV in your home

• Faster and easier to find content you love

• Connected experience &

best wifi coverage

• Professionally installed

28

SHOW SKY Q TAKE RECORDINGS

WITH YOU

SHOW SKY Q WIFI HOTSPOTS

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We are already seeing the benefits of Sky Q

More downloads than

Sky+ customers

Sky Q customers are more engaged

Using Sky Q App Satisfied with ease of finding

something to watch

84% 79% 69% 79%

30

We have launched NOW TV to tap into the OTT and Pay Lite opportunities

…unlocking

Free & Pay Lite households…

11m

NOW TV launched in 2012…

31

Efficient marketing

Attracting new segment

of customers

Accelerating growth

Increasing loyalty

Shared base of content

Trusted market leader

Peace of mind subscription

Unrivalled breadth of choice

Best TV experience

Industry leading customer service

Best choice for instant entertainment

Flexible range of passes

Latest movies, live sport, must-see TV

Quality streaming on multiple devices

Digital First customer experience

NOW TV is clearly differentiated from Sky

32

SHOW NOW TV BILLIONS

33

NOW TV is clearly differentiated from Sky

Limited cannibalisation

between Sky and NOW TV

Sky TV customers

joined NOW TV

2%

34

Customer cross sell continues to

deliver revenue growth

Our Smart TV box helps customers

find great content

Of NOW TV customers taking

more than 1 genre pass

More likely to keep

subscribing

30% 45%

Our shared cost base delivers substantial returns

35

Our portfolio of products appeals to all households

Entertainment

£6.99

Original pack

£20

Ents, Cinema,

Sports, Kids

£54

All packs

£92

Subscriber

acquisition costs

Marketing

costs

Subscriber

retention costs

Greater efficiency

Multi-brand portfolio

36

Breadth

Quality Affordability Compelling Value

37

38

Consumer-led

Track record

Technical

capabilities

Data and

Analytics

Skill set

Trusted

Quality

Flexible

Brand

First or best

in market

Attractive price

Continuously

improving

Unique

proposition

Marketing

Distribution

Customer service

Go to Market

39

Sky Store is

rapidly

taking

share of the

digital retail

market

Sky Box

Sets is the

best box

sets service

in the

market

Sky

Broadband

has grown

to be the

no. 2 ISP

Sky Mobile

offers a

significant

growth

opportunity

1. 2. 3. 4.

40

Rent 1,000s of movies

straight to your TV

Buy & Keep movies and box sets, on

your TV, devices and on DVD

Fastest growing

market share

And is on track to overtake iTunes

• 2,770 Movies available to rent

• Movies available from 99p

• Latest releases for £5.49

Digital Retail Market Share

• 2,650 titles available to buy

• Movies starting from £5.99 to

£13.99 for latest releases

• TV Box Sets starting from £22.99

2014 2015

4%

57%

30%

42%

Sky Store iTunes

41

SHOW SKY Q IDRIS ADVERT SHOW SKY STORE BOX SETS

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Bigger than Netflix in the UK

• Over 350 Box Sets with the best

quality titles

• Exclusive Box Sets you can’t find

anywhere else

• Complete shows from start to finish

• Scheduled to compliment our linear

programming schedule

43

2015

Churn Rates based Box Sets users vs non-users

Usage is growing at a fast rate…

+34%

2016

528m

395m

… which is pushing down churn

17%

reduction in churn for

active Sky Box Sets users

Engagement growing at pace

44

Quality service

Proven experience in building an entirely new business

Broadband from the

entertainment company

A range of services for every

household

DSL

Fibre

Talk

£5-£10 p/m

£10-£25 p/m

£0-£12 p/m

45

Fibre is ready for more growth

Innovators Early

Adopters

Early

Majority

Late

Majority

2020

High speed availability Fibre/High speed penetration

2011

Source: Headroom Research 2015 (3293), ASA Conjoint Research 2016 (2077), Enders Report 2015,

Broadband Leavers Survey: Jun-15 to May-16 – Product Respondents

Consumers want Fibre

Broadband prospects want to

take superfast Sky Fibre

68%

Fibre represents a large opportunity

46

SHOW SKY FIBRE MAX

47

48

Clear parallels with our experience in Broadband

• A brand already trusted by consumers

• Propositions suited to customer needs

• Scale economics – with the right balance of investment in our own network

• Go to market capabilities – to upsell and cross-sell at scale

• Customer management second to none

49

Largest adjacent sector

Sky’s largest adjacent sector Track record of selling products to

our customers

TV excl

adv

Mobile Fixed

telecoms

Wholesale

telecoms

UK Revenue 2015

£13.6bn

£15.2bn

£13.5bn

£6.2bn 9 11

14

18

22 25

28 32

35 38

40

3.24 products

per customer 2016 1.16 products

per customer 2006

2016 2006

Paid-for products subscriptions (m)

Source: Ofcom Communications Report 2016; Company Results

50

Sky homes account for There is strong demand from our

customers to take Sky Mobile

of UK mobile contract

customers

would consider Sky Mobile

84% almost

out of

10 3 2

50%

Our customers want Sky Mobile

51

We are ready for launch

Operations Readiness Supply Network

Core Network

Roaming

SIM management

Number range

SIM

Apple / Samsung

Distributor

Storage

Delivery / Repairs

Risk management

Sales platform

Provisioning

Service & billing

Revenue assurance

Operating model

Transcomms

Training

Business Capability

52

Almost open for business

31 Oct Pre-Registration

for customers

53

• Refreshed product set

• Growth opportunities

• Execution focus

• Track record

• Mid-single digit revenue growth

• Attractive profits profile

Mission: Impossible - Rogue Nation