2 nd Quarter FY19 Results 26 th September 2018 Disclaimer This - PowerPoint PPT Presentation

2 nd Quarter FY19 Results 26 th September 2018

Disclaimer This document contains certain forward-looking statements with respect to Astro Malaysia Holdings Berhad’s (“Astro”) financial condition, results of operations and business, and management’s strategy, plans and objectives for Astro. 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, revenue, profit, cash flow, operational metrics etc. 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 Astro’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 Astro operates in a competitive environment that is subject to rapid change, the effects of laws and government regulation upon Astro’s activities, its reliance on technology which is subject to risk of failure, change and development, the fact that Astro is reliant on encryption and other technologies to restrict unauthorised access to its services, failure of key suppliers, risks inherent in the implementation of large-scale capital expenditure projects, and the fact that Astro relies on intellectual property and proprietary rights which may not be adequately protected under current laws or which may be subject to unauthorised use. All forward-looking statements in this presentation are based on information known to Astro on the date hereof. Astro undertakes no obligation publicly to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This presentation has been prepared by Astro. The information in this presentation, including forward-looking statements, has not been independently verified. Without limiting any of the foregoing in this disclaimer, no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of such information. Astro and its subsidiaries, affiliates, representatives and advisers shall have no liability whatsoever (whether in negligence or otherwise) for any loss, damage, costs or expenses howsoever arising out of or in connection with this presentation. 1 | 2QFY19 results

1H FY19 key performance highlights • 5.3mn to 5.6mn households Revenue -0.7% • 72% to 76% household penetration RM2.75bn → RM2.73bn GROW 1.3mn to 1.9mn Astro GO registered users • • 1.1mn to 1.5mn Go Shop registered customers 1.9mn to 4.3mn Tribe total downloads • Adex -11% • 7.0mn average monthly unique visitors to digital RM351mn → RM312mn assets 75% TV viewership share driven by • LEAD vernacular content EBITDA -26% • 920k connected STBs RM1.01bn → RM750mn 16.9mn weekly radio audience • Norm. PATAMI -48% • ARPU of RM99.9 MONETISE • 41% TV Adex share RM430mn → RM225mn 75% Radex share • FCF of RM691mn • Reach and scale Content IPs and verticals -4% (from 723mn) • INVEST • Digital and commerce ventures 362% of PATAMI • Operational efficiencies Talent – on-air and digital • 2 | 2QFY19 results

1H FY19 year-on-year overview NB Highlights 1HFY18 1HFY19 Growth (1) TV household data sourced from the TV households (000s) (1) 7,261 7,380 1.6% Department of Statistics Malaysia and Media Partners Asia TV household penetration (2) 72% 76% 4 pp (2) Household penetration comprises residential Pay-TV customers and NJOI TV customer base (000s) 5,262 5,635 7% customers Pay TV ARPU (RM) 100.8 99.9 -0.9% (3) Viewership share is based on DTAM deployed by Kantar Media Astro TV viewership share (3) 77% 75% -1.5 pp (4) Audience measurement is provided by Radio listenership (mn) (4) 16.1 16.9 5% GfK. Share of radex is based on internal estimates Average monthly unique visitors (mn) (5) 6.8 7.0 3% (5) Average monthly unique visitors to Connected STBs (000s) (6) 639 920 44% Astro’s digital assets as sourced from comScore Revenue (RM mn) 2,746 2,727 -0.7% (6) Connected set-top boxes (STBs) are connected to the internet and have EBITDA (RM mn) 1,011 750 -26% access to Astro’s On Demand library of EBITDA margin 37% 28% -9 pp content (7) Normalised PATAMI excludes post-tax Normalised PATAMI (RM mn) (7) 430 225 -48% impact of unrealised forex gain/(loss) FCF (RM mn) 723 691 -4% 1H FY19: (RM 34m), 1H FY18: RM 12m due to revaluation of M3B transponder EPS (RM sen) 8.5 3.7 -56% lease liabilities (8) Data presented are for 6 months ended 31 July (9) Numbers may not add up due to rounding differences 3 | 2QFY19 results

ASEAN content & consumer company TV COMMERCE CONTENT RADIO DIGITAL 192 channels OTT (Over-The-Top) Service 11 radio brands Digital Assets • Largest Pay-TV • 7.0mn avg monthly • 11 radio brands • 24/7 shopping • Content producer & operator in SEA unique viewers across aggregator experience • 16.9mn weekly • Serving 5.6mn over 25 digital assets Malaysia & • Investing in content audience households • Tribe- regional OTT verticals with Singapore • #1 highest rated • 76% h ousehold with 4.3mn (1) regional reach • 1.5mn registered stations across 4 penetration downloads customers • Produced 12K hours key languages • 41% TV adex share of content in FY18 • 75% radex share • 920K connected STBs Note: 4 | 2QFY19 results (1) Cumulative count since inception (2) Connected boxes are set-top box connected to the internet and have access to On Demand library of content

Growing non-linear viewing: On Demand and on the go Total Connected STBs (1)(2) Total Video Downloads (mn) Avg. Weekly Viewing (mins) (000s) +36% +44% +243% 415 920 305 24 639 7 1H FY18 1H FY19 1H FY18 1H FY19 1H FY18 1H FY19 App Downloads ( 1) (mn) Registered Users (1) (mn) Avg. Weekly Viewing (mins) +34% +48% -31% 5.1 1.9 3.8 235 1.3 163 1H FY18 1H FY19 1H FY18 1H FY19 1H FY18 1H FY19 Note: 5 | 2QFY19 results (1) Cumulative count since inception (2) Connected boxes are set-top box connected to the internet and have access to On Demand library of content

TV viewership share remains strong Pay-TV NJOI 192 73 29 channels Astro-branded channels channels Avg. Daily Viewers (mn) TV Viewership Share Avg. Time Spent/Day (hrs) -3.7% -5.7% 13.4 12.9 -2.7% 75% 25% -1.5pp 7.4 7.2 03:49 03:36 02:06 02:06 1H FY18 1H FY19 1H FY18 1H FY19 Astro FTA NB 6 | 2QFY19 results (1) Number of channels as at 1H FY19 (2) Target Audience: Kantar Media, Dynamic TV Audience Measurement (DTAM). All Astro Pay-TV viewers

Revenue resilient underpinned by growth drivers (2) Total revenue (RM mn) YoY growth 1,417 1,420 1,397 (0.7%) 1,388 70 1,326 94 1,311 73 85 34% 62 84 208 161 175 196 (11%) 143 151 Go Shop Adex (1) Subscription/Others 1,162 1,149 1,140 1,121 1,107 (1%) 1,076 1Q FY18 2Q FY18 3Q FY18 4Q FY18 1Q FY19 2Q FY19 NB (1) Disclosed as Subscription revenue and Other revenue in our financial statements, includes revenue streams such as TV subscription, licensing income, programme sales, NJOI revenue and theatrical revenue 7 | 2QFY19 results (2) YoY refers to 1H FY18 vs. 1H FY19 (3) Numbers may not add up due to rounding differences

Temporary tax holiday impacts adex (2) (1) (RM mn) YoY growth Advertising income Radio listeners (mn) ( 3) Share of Radex Total Malaysia TV Radio gross ADEX YoY 208 75% 74% 196 growth (2)(5) -11% 16.9 16.1 175 161 89 OVERALL ADEX 151 84 -6% 143 -11% 79 1H FY18 1H FY19 1H FY18 1H FY19 76 68 72 Astro TV RADIO viewership share (4) -11% Share of TV adex 77% 75% 120 43% 112 41% -11% 96 85 83 TV 71 -7% 1H FY18 1H FY19 1H FY18 1H FY19 1Q FY18 2Q FY18 3Q FY18 4Q FY18 1Q FY19 2Q FY19 NB (1) Advertising income is net of commissions and discounts. Digital adex is included in TV and Radio adex (2) YoY refers to 1H FY18 vs. 1H FY19 (3) Audience measurement is provided by GfK. Share of radex is based on internal estimates (4) Viewership share is based on DTAM deployed by Kantar Media. Share of TV adex is based on Astro and Group M’s estimates 8 | 2QFY19 results (5) Malaysia gross adex figures (covering TV, print, radio, cinema, in store media, outdoor and digital) are based on Nielsen and Group M’s data (6) Numbers may not add up due to rounding differences

Cost optimisation remains a key focus Total operating expenditure (RM mn) Content cost as % of TV 30% 48% 28% 36% 33% 34% revenues 1,295 1,186 1,153 Within expectations as 1,029 1,043 1,017 jump this quarter due 693 to 2018 FIFA World Cup content cost 706 778 624 690 665 602 447 405 408 353 352 1Q FY18 2Q FY18 3Q FY18 4Q FY18 1Q FY19 2Q FY19 Content costs Other expenses NB (1) Content costs are disclosed as part of cost of sales in our financial statements 9 | 2QFY19 results (2) Other expenses include marketing and distribution costs, administrative expenses, STB installation and smartcard costs, depreciation and amortisation, as well as maintenance costs (3) Numbers may not add up due to rounding differences