CIMB Thailand Corporate Day 19 November 2010

Transcription

1 True Corporation plc CIMB Thailand Corporate Day 19 November 2010

2 True Group Thailand s convergence lifestyle leader 1 CP Group KfW Public shareholders - Foreign 8.27% - Local 26.99% 55.8% 8.99% 35.26% 99.9% 98.9% 98.3% 99.9% 99.9% (Wireline) (Wireless) (Pay-TV) (Digital commerce) (Digital content & access) Broadband leader, 70% value share in Bangkok Metropolitan Area 788K Broadband subs Largest fixed line (BMA) 1.9 mn fixed line subs International call service: No.3 mobile player 16.5 mn subs 24.3% market share No.1 pay TV operator Sole nationwide player 006 (TDM), (VoIP) growth area 1.7 mn subs (93% DsTV; 7% cable TV) ~1.1 mn subs from mass market strategy success Ad revenue as another Mobile payment leader Over 6 mn e-wallet subs World s first mobile payment via RFID Key convergence tool Richest content across different platforms No.1 casual on-line game Leading community portal Note: (1) Subscriber figures as of September 30, 2010 (2) Shareholding figures as of November 3, [Note: CP Group entered into a Share Sale and Purchase Agreement with KfW whereby CP Group agreed to purchase all True shares held by KfW. At the moment, the transaction has not yet been completed but once it has, we expect CP Group to have at approximately 64.7% holding in True Corp.]

3 Key strategies 2 1 Strengthen position as Thailand s only quadruple play operator 2 Increase mobile market share: focus on non-voice, smartphones - build position as Thailand s 3G market leader 3 Expand mass market penetration for Pay-TV and Broadband 4 Develop and roll out new innovative technologies to respond to consumer demands and maintain market leadership 5 Continue deleveraging, implement strict cost controls, focus spending on core growth areas

4 True Convergence Index continues to rise True Convergence Index* households 1,565 1,693 1,019 1,139 1,905 1,279 2,137 1,470 2,349 2,438 1,684 1,761 * No. of households using two or more True services; third-party survey normally conducted twice a year Feb'08 Jul'08 Feb'09 Jul'09 Feb'10 Jul'10 4 products 3 products 2 products Super hi-speed package* TrueVisions TrueLife packages * 000 subscribers subscribers 1, ,004 1,029 1,030 1, Q09 3Q09 4Q09 1Q10 2Q10 3Q10 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Super hi-speed -TrueMove Super hi-speed -TrueVisions Upsold Non-upsold (Free view) Non-upsold (Free-to-air) * Remark: Excluding hi-speed internet plus 40 TV channels from TrueLife -Freeview * Remark: Including bundling package with TrueMove and Broadband

5 Convergence strategy yields benefits 4 Broadband low churn Subscriber growth across all businesses Proportion of bundled subscribers 60% of TrueMove postpaid subs 47% of Broadband subs 44% of TrueVisions rental subs High churn Medium churn Lower churn for mobile (1.8%) and pay TV (1.4%) by bundling with Broadband s lower-churn subs Higher revenue per user Mobile Increased share of bundled subs in key businesses Pay TV Difficult for competitors to replicate

6 Diversified revenue & EBITDA base 5 FY07 Pay TV (TrueVisions) 17% Mobile (TrueMove) Fixed line 44% (TrueOnline) 39% Service revenue (excl. IC) mix FY08 FY09 Pay TV Pay TV (TrueVisions) (TrueVisions) Mobile Mobile 18% 18% (TrueMove) (TrueMove) Fixed line 42% Fixed line 42% (TrueOnline) (TrueOnline) 40% 40% 9m10 Pay TV (TrueVisions) 18% Mobile (TrueMove) Fixed line 42% (TrueOnline) 40% Bt 51,818 mn Voice 65% Non-voice 35% Bt 51,921 mn Voice 62% Non-voice 38% Bt 52,605 mn Voice 60% Non-voice 40% Bt 38,977 mn Voice 58% Non-voice 42% EBITDA mix FY07 FY08 FY09 9m10 Pay TV (TrueVisions) 13% Fixed line (TrueOnline) 49% Mobile (TrueMove) 38% Pay TV (TrueVisions) Mobile 14% (TrueMove) 31% Fixed line (TrueOnline) 55% Pay TV (TrueVisions) 13% Fixed line (TrueOnline) 50% Mobile (TrueMove) 37% Pay TV (TrueVisions) 13% Fixed line (TrueOnline) 53% Mobile (TrueMove) 34% Bt 19,754 mn Bt 18,515 mn Bt 19,582 mn Bt 13,752 mn

7 True is a strong and highly visible brand 6 Thailand s Most Innovative Company 2009 Wall Street Journal Asia Survey 2006/07 Thailand's top 10 Overall, ranked 1 C.P. Seven Eleven(CP All) 3.96 Convenience-store operator In innovation 1 True Corp. Expanding in cable, broadband 2 Siam Cement 3.82 Construction conglomerate 2 C.P. Seven Eleven (CP ALL) Adding convenience stores 3 Charoen Pokphand 3.68 Dominant agribusiness firm 3 Advanced Info Service Competitive mobile player Gold Trusted Brand Awards BumrungradHospital 3.63 Medical-tourism pioneer Kasikornbank 3.61 Banking, financial -services firm 4 5 Total Access Communication A leading cellular firm Kasikornbank Marketing heavily to consumers 6 Siam Commercial Bank 3.55 Banking, financial -services firm 6 Big CSupercenter Retailer known for low price 7 Advanced Info Service 3.53 Leading mobile-phone provider 7 Siam Commercial Bank Long-standing commercial bank 8 PTT 3.52 Former state oil company 8 Charoen Pokphand A big name in agribusiness field 9 Land & House 3.46 Property-development firm 9 BEC World Operates popular TV channel 10 True Corp Cell, cable-tv, broadband firm 10 Land & House Trusted home-building brand

8 Ongoing operations heading for break-even point 7 Service Revenue excl IC EBITDA Bt bn * Annualized from 9m10 results * Annualized from 9m10 results Ongoing Results (NIOGO) Bt bn (1.2) (1.6) (3.2) (2.8) (4.3) (4.5) (5.0) (5.8) (6.0) 0.1 (0.5) (0.6) Bt bn CAPEX * Annualized from 9m10 results * Annualized from 9m10 results

9 Financial highlights 9m10 8 (Units in millions of Baht unless otherwise indicated) TrueOnline 1/ TrueMove 1/ TrueVisions 1/ Consolidated Total Revenue (excl IC) 20,529 18,951 7,309 40,823 % growth Y-o-Y 3.1% -0.4% 2.1% 0.1% Service Revenue (excl IC) 20,095 17,528 7,114 38,997 % growth Y-o-Y 3.0% 0.7% 1.4% 0.0% EBITDA 7,252 4,726 1,736 13,752 % growth Y-o-Y -5.9% -10.6% -16.6% -8.1% Depreciation & amortization (4,479) (3,134) (756) (8,331) % growth Y-o-Y 4.4% 2.5% 2.4% 3.5% Interest expense (1,933) (2,469) (409) (4,666) % growth Y-o-Y -16.6% -12.2% 72.7% -10.3% Tax, net (686) (98) (238) (1,066) Current tax (328) - (69) (397) growth Y-o-Y (34) - (330) (363) Deferred income tax (358) (98) (168) (669) growth Y-o-Y (44) (507) 126 (425) NIOGO 2/ 170 (1,075) 423 (467) growth Y-o-Y (403) 0 NIOGO excl. deferred tax 528 (977) growth Y-o-Y 125 (315) (277) (424) Non recurring items (769) 2, ,502 Foregin exchange gain (loss) (411) 1, ,549 Other (expense) income (358) Net profit (loss) to shareholders of the parent (599) 1,446 1,180 2,035 Minority interest (155) - 22 (115) Net profit (loss) for the period (754) 1,446 1,202 1,920 1/ Before eliminations of inter-company transactions 2/ NIOGO: Net income (loss) from ongoing operations

10 Balance sheet improving 9 Long-term debt composition Net debt-to-ebitda vs. EBITDA coverage Bt bn times m10 TrueOnline TrueMove TrueVisions Note: 1/ Figures include current portion of long-term debt but do not include financial lease and debt issuance costs 2/ TrueVisions debt includes all L-T loans for TrueVisions acquisition m10 Net debt to EBITDA EBITDA-to-Interest coverage Note: Figures do not include financial lease 1/ 3Q09 Net debt-to-ebitda to was adjusted (from 3.0x) to exclude cash raised for refinancing in Q4 Bt 1.3 bn of debt repaid during Q3 (Bt 4 bn in 9M10); net debt-to-ebitdato decreasing Further improve credit profile through deleveraging and refinancing

11 TrueVisions refinancing completed TrueVisions Group repayment schedule* Bt bn Previous repayment New repayment New facility: Bt 12 bn in Thai Baht loans from 4 major banks carrying interest rate of MLR-0.5% Refinanced existing loans of Bt 9,732 mn (US$ mn + Bt 2.8 bn) at 7.68% interest rate Part of remaining proceeds to support pay TV business opportunities Credit profile improved with FX risk eliminated and more favorable terms Low interest rate -- currently 5.3% (MLR-0.5%) 8 years maturity with step up repayments, better matching cash flow, conditions relaxed TrueMove refinancing in the pipeline Remark: As of 3Q10, Bt 11.4 bn has been drawn down

12 CP Group to purchase all True shares from KfW 11 Pre transaction (Nov 3, 2010) Post transaction CP Group 55.75% Free Float 35.26% KfW 8.99% CP Group 64.74% Free Float 35.26% Paid - up capital Bt bn (7,775.7 m shares) Paid - up capital Bt bn (7,775.7 m shares) True will be no longer obliged to pay KfW Bt 5.6 bn in cumulative preferred dividends, upon the completion of the deal (expected by year-end 2010) Transaction demonstrates CP Group s confidence in True Group

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14 %FY06 %FY07 %FY08 %FY09 %9m10 Service revenue +4.4% +2.3% +6.0% +1.5% +3.0% EBITDA -7.3% -2.3% +5.4% -3.8% -5.9% TrueOnline: Broadband growth offsets voice declines 13 Bt mn 10,179 11,452 13,070 16,038 Service revenue 22,963 23,972 24,528 25,989 26,387 7,792 9,235 5,226 1,699 3,110 3,841 9,998 8,564 19,510 20,095 6,500 5,702 10,573 7,878 8,541 5,812 7,250 5,132 5,852 New revenue stream (IDD, TIG, and VoIP), convergence Internet, Broadband and Business data services Traditional voice (fixed-line, payphone, PCT) Bt mn (1,145) (2,713) (452) NIOGO 1, , (158) (101) (2,456) NIOGO excl. deferred income tax NIOGO EBITDA & EBITDA margin Bt mn Free cash flow 44.9% 40.3% 38.8% 38.1% 36.4% 38.7% 35.3% 6,944 6,558 Bt mn 5,517 5,392 10,677 9,899 9,670 10,195 9,804 4,131 7,708 7,252 3,601 3,153 2,408 2,551 1,849 4,570 1,995 3,128 2,402 EBITDA EBITDA margin Cash flow from operation Capex

15 Competitive advantage with superior network CSN True PSTN Network in Optic Fiber TN Bangkok Metropolitan Area (BMA) RCU RCU RCU RCU (OSP Copper) Fiber and advanced electronics = greater reliability and stability Shorter last mile connection improves Broadband performance avg. within 3km Costly and difficult to replicate Fiber rich (>240,000 core Km in BMA; > nationwide) >300, RCUs (instead of central offices)

16 %FY06 %FY07 %FY08 %FY09 %9m10 Broadband revenue +59.2% +41.7% +16.0% +10.8% +9.1% Broadband subscribers +47.4% +24.1% +15.4% +9.1% +18.3% Broadband revenue & subscribers 15 Broadband revenue* & ARPU Subscribers* & net adds Bt/sub/mo 000 subscribers Bt mn 2,047 3, ,931 5,354 4,617 4,392 4, Broadband Internet revenue Blended ARPU * Broadband revenue and subscribers were reclassified, and restated to include revenues from corporate Internet service. Previous subs Net adds * Broadband revenue and subscribers were reclassified, and restated to include revenues from corporate Internet service. Broadband market share by subscribers (as of 1H10) TOT 26% 3BB 10% True 64% 3BB Higher market share by value: 10% True 31% 67% BMA 35% nationwide TOT 44% BMA Nationwide

17 High growth potential for Broadband especially in provinces Fixed-line Broadband penetration Thailand Broadband penetration forecast % 94.0% % 79.0% % 14.5% 11.1% 10.7% E 2011E 2012E 2013E Subscribers Penetration rate (%) Source: True Corp & Point Topic, March 2010 Source: Company Advanced applications and high definition (HD) content drives demand for high speed Broadband Advanced applications and high definition (HD) content drives demand for high speed Broadband New technological era: eg, cloud computing, Next Generation Broadband Network, Web 3.0

18 Market leader for speed, quality and customer service 17 Super Hi-speed sub by speed* 89% < 3Mbps 54% 3-5Mbps 6-8Mbps 4% 7% > 8Mbps 10% 4% 32% 9m09 9m10 *Connection speed for the standard package (Bt599/month) was upgraded from 3Mbps to 4Mbps in Oct 09 and to 6Mbps in Aug 10 First network to deliver 6Mbps as standard on a mass scale More flexible Ultra Hi-Speed Internet packages introduced Customer survey revealed TrueOnline has best after-sales services

19 18 New technologies will accelerate growth Broadband subscribers >1mn 718k >800k DOCSIS 3.0 FTTx WiMAX Quad Play HD Content NGN/NBN 3.7k Up to Up to Up to 128 Kbps 50 Mbps 400 Mbps 1 Gbps ADSL, VDSL DOCSIS 3.0 FTTx NGN/NBN and beyond

20 IDD and International Gateway as new revenue streams 19 IDD revenue TIG s revenue breakdown* Bt mn % % % % m09 9m10 4 Data gateway Internet gateway Remark : TIG = True International Gateway Co., Ltd. TIC 006, Revenue share from CAT to True fixed-line *non-affiliated revenue IDD has generated about Bt 500 mn since end-2007 launch; continues to grow strongly Internet and Data Gateways expanding regionally; virtual node deals recently signed with major international carriers %FY06 %FY07 %FY08 %FY09 %9m10 IDD revenue +86.1% -22.9% +99.4% +23.8% +13.5%

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22 %FY06 %FY07 %FY08 %FY09 %9m10 Service revenue excl. IC +13.9% +6.8% -4.4% +3.4% +0.7% EBITDA -0.5% +49.2% -24.8% +27.0% -10.6% Non-voice revenue offsets impact from competition in voice 21 Service revenue & market share 13.8% 15.3% 15.7% 14.4% 15.0% 15.0% 14.3% Bt mn 46 NIOGO Bt mn 19,594 1,331 1,477 22,309 2,101 2,131 23,835 22,796 23,575 2,477 2,660 2,573 2,490 2,679 3, ,786 18,077 18,868 17,457 17,868 17,409 17,528 1,796 2,208 2,235 2,573 13,378 12,747 (777) (624) (662) (977) (1,411) (1,267) (1,075) (2,725) (2,883) (2,725) (3,433) (3,100) (3,244) NIOGO excl. deferred income tax NIOGO Voice Non-voice International Roaming and others % TMV service revenue market share EBITDA & EBITDA margin 23.4% 21.4% 30.6% 24.3% 27.7% 27.8% 24.9% Bt mn 7,268 Free cash flow Bt mn 7,566 7,226 5,691 5,095 5,072 5,286 4,726 5,262 5,070 4,232 4,710 4,904 4,111 3,880 2,637 2,762 2,128 3,691 4,849 2, Net IC (845) (32) (70) +153 EBITDA EBITDA margin Cash flow from operation Capex

23 %FY06 %FY07 %FY08 %FY09 %9m10 Total Subscribers +70.0% +59.4% +22.2% +7.1% +7.6% Blended ARPU -25.7% -34.6% -32.2% -11.0% -8.5% Overall subscriber share remains stable 22 Subscribers - TrueMove Share of subscribers Big Three 15.1% 19.4% 23.2% 24.3% 24.6% 24.4% 24.3% 000 subscribers 7,578 4, ,031 4,009 12, ,362 14,757 15,801 16,537 15, ,226 1,260 1,177 13,786 14,575 14,188 15,277 5% 50.1% 46.4% 44.9% 55.5% 44.8% 45.0% 44.9% 29.4% 30.5% 30.4% 30.8% 30.6% 30.6% 30.8% 2% 4% 15.1% 19.4% 23.2% 24.3% 24.6% 24.4% 24.3% Net add +1,078 +3,119 +4,502 +2,677 +1, ( 000 sub) Prepaid Postpaid % TMV subscriber market share Bt/sub/mo ARPU - TrueMove TrueMove DTAC AIS Subscriber mix - TrueMove 7.7% 7% 7.6% Prepaid 92.3% Postpaid 92.4% 9m09 9m10 Blended Prepaid Postpaid

24 23 Convergence, non voice drive postpaid growth, competition pressures prepaid Postpaid %FY06 %FY07 %FY08 %FY09 %9m10 Service revenue excl. IC -18.1% +10.9% +1.2% +17.8% +10.6% Subscribers +21.7% +31.3% +35.2% +26.3% +7.1% Prepaid %FY06 %FY07 %FY08 %FY09 %9m10 Service revenue excl. IC +22.6% +4.3% -7.8% -0.1% -6.5% Subscribers +75.4% +61.6% +21.3% +5.7% +7.7% Postpaid subscribers 11.5% 11.3% 14.1% 16.0% 19.1% 18.6% 19.2% Bt/sub/mo Postpaid revenue & ARPU subscribers ,226 1,177 1, , Bt mn 5, ,979 5,807 4,393 4,870 4,930 1, ,929 4,338 4,225 4,725 4,201 4, ,063 3,500 3,583 Previous sub Net adds % TMV subscriber market share Prepaid subscribers 15.6% 20.6% 24.2% 25.2% 25.2% 25.1% 24.9% Voice Non-voice Postpaid ARPU Prepaid revenue & ARPU Bt/sub/mo subscribers 7,031 4,009 3,022 1,081 2,928 4,009 11,362 4,331 7,031 14, ,277 13,786 14, ,424 13,786 13,786 14,575 11,362 Bt mn 12,897 1,090 11,807 15,815 16,488 15,206 15, ,668 1,958 1,974 2,052 14,147 14,530 13,232 13,143 11,412 10,674 1,535 1,511 9,877 9,163 Previous sub Net adds % TMV subscriber market share Voice Non-voice Prepaid ARPU

25 Non-voice grows on Mobile Internet, smartphone usage 24 Non-voice revenue 9.6% 10.4% 11.8% 13.3% 12.8% 14.7% 3,134 Bt mn 2,679 2,490 2,131 2,235 2,573 1,616 1,367 1,512 1,418 1, , m09 9m10 Messaging (SMS/MMS) Mobile Internet Content & RBT % of service revenue excl. IC Non-voice revenue grew 15% in 9M10, contributing 14.7% of service revenue excl IC up from 12.8% in 9M09 Smartphones accounted for 10% of postpaid revenue in Q3, doubling from a year ago Growth supported by more flexible data charging and network improvements %FY06 %FY07 %FY08 %FY09 %9m10 Non-voice revenues +44.2% +16.9% +7.6% +17.0% +15.1%

26 Regulatory/Litigation Update 25 3G 2.1GHz auction halted, waiting for Constitution Court verdict. TrueMove prepared for all opportunities: 3G 850MHz commercial launch, negotiations ongoing with CAT K2 concession conversion project TOT/CAT MVNO Frequency Allocation Bill was passed facilitating the formation of the NBTC Mobile Number Portability will launch in December. True and other operators appealing NTC s fine for MNP delays

27 TrueMove leads the iphone 4 market Most attractive tariff with most comprehensive data services (eg GPRS, EDGE, Wi-Fi, 3G*) Fastest delivery & activation speed Exclusive iphone applications & TrueVisions content Upswing in iphone users subscribing to TrueMove * Non-commercial 3G 850MHz trial service

28 True positioned as Thailand s premier smartphone service True develops premium services for smartphone users 300 IT Friends - in-store smartphone experts 6 IT Bars smartphone service & lifestyle centers True App Center developing 120+ custom applications for iphone, Android, BlackBerry, including exclusive True apps IT Bar

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30 %FY06 %FY07 %FY08 %FY09 %9m10 Service revenue +6.3% +5.0% +6.4% +1.1% +1.4% EBITDA +20.8% +6.8% +5.5% -1.7% -16.6% Revenue grows with support from advertising 29 Bt mn 7, , , Service revenues NIOGO 9,431 9, ,480 7,769 8,001 8,426 8,549 7,015 7, ,418 6,259 -Advertising - Others - Subscription & installation Bt mn 866 1,418 1,166 1, ,245 1,097 1,130 1, Subscription & installation Others Advertising EBITDA & EBITDA margin NIOGO excl. deferred income tax NIOGO Free cash flow 24.2% 26.4% 25.9% 26.1% 27.0% 29.1% 23.7% 24.8% 26.2% 2% Bt mn 2,527 2,666 2,622 2,366 1,959 2,081 1,736 Bt mn 2, , ,494 1, EBITDA EBITDA margin w/o TVS extra item Note: 2009 includes the reversal of over-accrued content-related cost (Bt207mn) (86) Cash flow from operation Capex

31 %FY06 %FY07 %FY08 %FY09 %9m10 Total subscribers +28.9% +66.6% +41.4% +13.2% +5.9% ARPU -5.7% -9.3% -10.5% -18.4% -9.0% Overall subscribers increase; mass market subs exceed 1 mn 30 Subscribers & ARPU Bt/sub/mo 1,291 1,217 1, ,663 1,644 1,742 1, subscribers , Net adds ( 000) Premium (Platinum, Gold, Silver) Standard (Knowledge) Freeview Free-to-air Blended ARPU Remark: In 3Q10, a new retention policy which automatically transfers these subscribers to the Free to Air service for an additional 60 days, rather than cutting the signal after 30 days from the last payment was implemented. This resulted in a onetime adjustment in the number of subscribers. Bundled package subscribers & upselling rate 000 subscribers 19.0% % 38.0% 36.8% 36.6% ,029 1, , Upsold Non-upsold (Free-to-air) Non-upsold (Free view) % Upselling rate * Upselling rate refers to the upgrading of mass market subscribers to higher-value packages **Restated to include subscribers of TrueVisions- hi-speed bundling packages since 4Q09 In Q3, overall subscribers increased on seasonality, start of Premier League 2010 Promotions boosted mass market subs

32 Content development remains key 31 Develop exclusive HD content to attract premium subscribers HD provide the best viewing experience for premium subscribers, supports ARPU Competitors cannot replicate service due to limited technology/capacity More channels available to mass market and Free-to-Air subscribers

33 Self-produced channels gain popularity 8 self-produced channels rank in TrueVisions Top 10 News & Doc Music Reality Entertainment 29 channels covering main program categories 12 new channels launched in 2010

34 TrueVisions packages offer diverse, high quality content PREMIUM MARKET 92 Channels 83 Channels 69 Channels A La Carte MASS MARKET 59 Channels 45 Channels A La Carte

35 34 Low household penetration offers high growth opportunities 38% 20.6 Pay TV penetration 50% 57% 72% Thailand Malaysia Singapore Hong Kong TVS subs Local cable & satellite TV subscribers Non-Pay TV HH % Pay TV penetration rate Note : 1) Data source : Pan-Regional TV in Asia 2009, 2Q09, Casbaa 2) Thailand data: AGB Neilson research : Company data (as of Jun 2010) 2.1mn local cable subs & 4.1mn satellite dish subs Thailand s pay TV penetration is relatively low (38%) compared to Asia-Pacific peers TrueVisions is the only nationwide operator with exclusive key content

36 Looking forwards for Revenue to grow further in Q4 helped by seasonality Greater focus on cost controls Develop new convergence packages to respond to market demand Roll-out new technologies Strengthen True s position as Thailand s only quadruple play operator Pursue alternative 3G opportunities following suspension of 3G 2.1GHz auction Stronger revenue in Q4, driven by recently launched Broadband packages Broadband coverage available in 20 key cities with ongoing capacity expansion nationwide Horizontal expansion of Ultra Hi-Speed Internet market Cable modem (DOCSIS 3.0) trial launched by the end of Q4 Continued development of customer services with focus on retention IDD and Internet Gateway revenue to continue on a growth trend in Q4 Prepaid recovery to gain pace in Q4 with new competitive promotions Postpaid subscriptions and revenue growth to accelerate with launch of Hi-Speed Net SIMs and improved Wi-Fi and data platforms Strong revenue contributions from iphone 4 and new BlackBerry models Further improve network coverage and capacity Full-quarter impact of Premier League to boost revenue Ad revenue should improve with a year-end sales campaign and more channels carrying ads Penetrate mass market further by making limited exclusive content available on Free-to-Air Considering new technologies to combat piracy, retain premium subs and reduce costs

37 36 Disclaimer: This presentation contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of Discussion of factors that may affect future results is contained in our recent filings with the Securities and Exchange Commission. Thank You