2nd quarter FY14 results

11th September 2013

Disclaimer
This document contains certain forward-looking statements with respect to Astro Malaysia Holdings Berhads (Astro) financial condition, results of operations and business, and managements 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 Astros 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 Astros 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 | 2QFY14 results

Key highlights of H1FY14 performance

GROW 49% to 54% HH penetration
74% on B.yond STBs, 61% on HD Highest ever eQ score of 79 Launched Family HD, Chuen Min and Chuen Min HD packs

Revenue +13%
RM2.06bn to RM2.31bn

LEAD

EBITDA +12%
RM700mn to RM786mn

RM91.8 to RM94.9 ARPU 26% to 30% TV adex MONETISE 53% to 55% Radex INVEST
2 | 2QFY14 results

Adex +15%
RM235mn to RM270mn

STBs Transponder capacity Operational efficiencies

FCF of RM469mn
221% of PAT

H1FY14 snapshot executing on growth strategy

Highlights TV households (000s)(1) TV household penetration(2) TV household penetration (000s) Pay TV households (000s) NJOI households (000s) Pay TV gross adds (000s) MAT churn Net adds (000s) Pay TV households (000s) NJOI households (000s) B.yond STB swapout (000s) ARPU (RM) Astro TV viewership share Radio listenership (000s) Adex (RM mn) Revenue (RM mn) EBITDA (RM mn) EBITDA margin FY13 6,657 49% 3,257 3,166 91 236 8% 190 99 91 368 91.8 42% 12,866 235 2,055 700 34% FY14 6,842 54% 3,673 3,359 314 249 9% 188 83 105 441 94.9 44% 12,344 270 2,314 786 34% Growth 3% 5pp 13% 6% 245% 6% 1pp (1%) (16%) 15% 20% 3% 2pp (4%) 15% 13% 12% -

3 |

2QFY14

NB (1) TV household data sourced from Value Partners Management Consulting, the Independent Market Research consultant to the company during the IPO results (2) Household penetration includes both residential pay-TV customers and NJOI customers (3) Data presented are for the 6 months ended 31 July, with the exception of ARPU and churn which are 12-month moving averages

Customer and ARPU growth continues, with increased momentum on Astro B.yond STB swap
Residential customers Pay-TV
14 3,108 91 3,166 132 3,213

(000s)
NJOI 209 3,276 264 3,316 314 3,359

ARPU
93.2
94.2

(RM)
94.9

90.3

91.8

92.3

1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 2QFY14

1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 2QFY14

Customers with B.yond STBs

44%
1,731 1,377

(000s)
66%
1,134 2,182

Churn
8% 8% 8% 8%

(%)
8%
9%

50% 1,567
1,599

55%
1,440 1,773

60%
1,310 1,966

74%
887 2,472

Penetration

1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 2QFY14 With B.yond STBs Legacy
4 | 2QFY14 results

1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 2QFY14

Upsell of value-added products and services highlights ongoing success of Astro B.yond swapout strategy
(000s)
67% 68% 65% 64% 64% 61% 197 227 299 343 414 5 7 9 11 13 16 Penetration 926 1,397 1,518 1,081 1,151 1,264 103

(000s)

(000s)

1QFY132QFY133QFY134QFY131QFY142QFY14

1QFY132QFY133QFY134QFY131QFY142QFY14

1QFY132QFY133QFY134QFY131QFY142QFY14

Multiroom
218 245

(000s)
268

downloads (000s)
628

& VALUEPACK
Superpack Valuepack 35 452 650 727 784

(000s)
107 823

123

145

175

399 137 252

510

404

1QFY132QFY133QFY134QFY131QFY142QFY14

1QFY132QFY133QFY134QFY131QFY142QFY14

1QFY132QFY133QFY134QFY131QFY142QFY14

5 |

2QFY14 results

New channels and packages launched to provide greater choice, value and content experiences to customers

171
total channels

New entry-level packs

FAMILY HD
(RM49.95)

CHUEN MIN HD
(RM49.95)

CHUEN MIN
(RM37.95)

39
HD channels
New channels

+11 HD channels Leading with HD experience across all offerings

+3 Chinese channels Improving vernacular experience at the entry-level

Channel supply deal

67
Astro-branded channels
6 | 2QFY14 results

Included in Astro Select, our complimentary pack for Astro B.yond IPTV powered by Maxis customers with 10 HD channels and >700k VOD hours

Commercial arrangement to supply Supersport HD, Supersport HD 2 and bouquet of NJOI channels to TM

Content 360 to further engage our viewers

Top program on Prima, with an average

700k viewership weekly

KE 3 Final Concert is one of the most watched show s in Astros history, with 1.28 mn viewers on final

Received 350k votes 212% increase compared to Season 2!

PRINT
Ads in top Malay titles to increase awareness & collaboration with magazine for monthly write-ups

TV

3rd season final overtook TV3s Bulletin Utama as the No.1 primetime show

KE Winners graced Mustika HD Birthday Bash, AOTG and Planet Gempak

RADIO
Seamless integration with Sinar FM & THR Gegar

ON GROUND OUT OF HOME DIGITAL

Promoting through Astro Gempak Behind the scene before concert Update during LIVE concert 7 KE tweets reached an average of 600k unique Twitter individuals during TX

Billboards at key areas in KL, JB, Kuantan and Butterworth

Enhancing customer experience remains a key focus best ever score achieved in H1FY14

eQ

Astro uses the eQ system, a Nielsen product, to monitor customer experience at all steps along the customer journey and across all touch points
eQ score
79

Percentage who rate us as exceeding expectations

76
73 74

76

1 Reconnection
Packages & Subscription Fees Viewing Experience

62 47

+15

61 54

+7

1HFY10

1HFY11

1HFY12

1HFY13

1HFY14

59 55

+4

Customers value the greater convenience introduced through enhanced self-service capabilities Value for money with our introduction of the Value Packs and the Chakravarthy Pack Transmission interruption has reduced since deployment of B.yond STB conversion
2QFY14 results

2
3
8 |

Adex continues to outperform the industry

Adex revenue
TV Radio Others +15% 142 2 59 55 115 2 49 H1: 270 155 2 53%

(RM mn)

Share of radex
55%

Radio listeners (mn)

12.9

H1: 235 140 1 57

12.3

125 2

66

FY13

FY14

FY13

FY14

95 1 44

Share of TV adex
30% 26%

Astro TV viewership share

44% 42%

82 50

68

81

87 64

1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 2QFY14

9 | 2QFY14 results

FY13

FY14

FY13

FY14

NB Listenership and viewership shares, as well as share of Radex is sourced from Nielsen. Share of TV Adex is based on Astro analysis.

Increasing value proposition underpins double digit revenue growth

Total revenue (RM mn)
1,188 44 66 87

YoY growth

(2)

987 22 44 50 Other Radio TV adex TV subscription 871

1,070 29 57 82

1,079 37 55 68

1,131 32 59 81

1,125 39 49 64

13% 63% 15% 15%

902

919

959

973

991

11%

10 |

2QFY14 results

NB (1) Other revenue includes programme sales and theatrical revenue. (2) YoY refers to H1FY14 vs. H1FY13

1QFY13

2QFY13

3QFY13

4QFY13

1QFY14

2QFY14

Operating expenses will peak in FY14 as we focus on reinvesting for growth

Total operating expenditure
33% 33% 31% 34% 973 96 165 353 32%

(RM mn)
32% 1,004 120 137 387 Increase in operating expenses, particularly STB depreciation (c.RM110mn), as well as selling, installation, distribution and logistics costs driven by higher Astro B.yond STB conversions Continuous investment in content offerings to provide an enriching experience for our customers whilst managing content costs within 32 35% of TV revenue

Content cost as % of TV revenue 858 93 121 319 908 125 115 355 941 118 128 360

775 100 90 280 305 1QFY13

325 2QFY13

313 3QFY13

359 4QFY13

335 1QFY14

360 2QFY14

Content costs Marketing & distribution costs

NB

Operating expenses Administrative expenses

11 |

2QFY14 results (1) Operating expenses include STB installation and smartcard costs, depreciation and amortisation, as well as maintenance costs
(2) Content costs and operating expenses are jointly disclosed as cost of sales in our financial statements

Disciplined capex to drive growth; peaks in FY15

Cash capex
as % of revenue 6% 114 21 79 FY13 Revenue growth Operational efficiencies 6%

(RM mn)

STBs capitalised
as % of revenue 12% 20%

(RM mn)

4 10

139 56 52 FY14

12 19 453 240 FY13 FY14

Expansion Capital maintenance

STB capex will peak in FY14 as we target completing the Astro B.yond swap out STBs are owned by Astro, and are capitalised STBs are conservatively amortised over 3 years; note that actual useful life is typically greater than 5 years Discretionary 36 month bullet payment vendor financing is available for Astro for STB purchases RM1,235 mn of vendor financing recorded in payables, of which RM281 mn is current and RM954 mn is non-current

Key capex investments in FY14 include: Hardware for Astro Select on Astro B.yond IPTV Call center efficiency upgrade Product improvements CRM enhancements Building expansions
12 | 2QFY14 results
NB Data presented are for the 6 months ended 31 July 2013

Consistently strong free cash generation exceeds PAT

Free cash flow
as % of PAT 167%

(RM mn)
221%

(205)

(148)
674 513 365

469

Cash from operations

Cash from investing

Free cash flow

Cash from operations

Cash from investing

Free cash flow

FY13
FY12 FY13

FY14

enabling significant flexibility on capital management and adoption of progressive dividend policy
13 | 2QFY14 results
NB Data presented are for the 6 months ended 31 July 2013

Quarterly dividend announcement

Leveraging on invested capital, AMH will continue to be highly cash generative

enabling the adoption of a progressive dividend policy

AMH Board of Directors is pleased to declare a quarterly dividend of 2.0 sen per share Entitlement and payment dates: 30 September 2013 / 18 October 2013

14 |

2QFY14 results

Appendix

PAT reconciliation
(RM mn)
EBITDA Margin % Depreciation and amortisation EBIT Finance income Finance cost Share of post tax results from investments PBT Tax expense Tax rate % PAT Margin %
16 |

FY13
700 34% (262) 438 37 (175) 2 302 (83) 27% 219 10.6%

FY14
786 34% (400) 386 33 (132) 2 289 (77) 27% 212 9.2% Reduction in finance cost due to lower net unrealised forex loss Increase in D&A due to increased cumulative STBs capitalised and depreciated

2QFY14 results NB Depreciation and amortisation excludes the amortisation of film library and programme rights (RM166mn in H1 FY13 and
RM164mn in H1 FY14) which is expensed as part of content costs (cost of sales)

Group balance sheet overview

(RM mn)
Non-current assets Property, plant and equipment Other non-current assets

FY13
3,716 1,740 1,976

FY14
4,145 2,099 2,046

(RM mn) Non-current liabilities Payables Borrowings Other non-current liabilities

FY13
4,893 455 4,199 239

FY14
4,694 1,067 3,503 124

Current assets Receivables and prepayments Cash and cash equivalents Other current assets

2,028 875 1,027 126

2,776 939 1,771 66

Current liabilities
Payables Borrowings Other current liabilities Shareholders equity

1,948
1,751 36 161 (1,097) 5,744

1,671
1,421 204 46 555 6,921

5,744

6,921

Net debt / LTM EBITDA: 1.3x

17 | 2QFY14 results
NB Data presented are as at 31 July 2013

Debt profile
Total borrowings
(RM mn)

Details of borrowings
US dollar term loan of US$330mn swapped into Ringgit (RM1.0bn), fully drawn on 10 June 2011 10 year tenor, maturing on 8 June 2021 Back ended amortisation schedule, with average life of 7 years Fully hedged at exchange rate of USD/RM3.0189 All-in interest rate (post-hedging): 4.19% (as at 31 July 2013) Ringgit term loan of RM2.01bn, fully drawn on 10 June 2011. RM510mn of RM2.01 bn was prepaid on 19 November 2012, leaving balance of RM1.5 bn. Floating KLIBOR under this portion is hedged Additional RM500mn was drawn down on 18 May 2012 (additional RM500mn was still undrawn but left to voluntarily lapse on 16 November 2012). The floating KLIBOR under this portion is unhedged As at 31 July 2013, RM1.5 bn portion has all-in interest rate (post-hedging) of 5.4353%, while balance unhedged of RM500mn stood at 4.5380% (variable floating rate based on cost of funds) Balance outstanding of RM2.0bn has final maturity date of 19 May 2021 Back ended amortisation schedule, with average life of 7 years

Finance lease
Total borrowings net of debt issuance costs of RM39 mn

RM term loan

USD term loan

USD term loan

3,707

1,067

RM term loan 2,000

679 FY14
18 | 2QFY14 results

Finance lease (primarily satellite transponders)

Finance lease related to lease of Ku-band transponders on MEASAT-3 and MEASAT-3A. Payment arrangement for the remaining contractual years have been redenominated into Ringgit at USD/RM 3.0445 w.e.f. 21 May 2013 Effective interest rate: 6.2% and 12.5% p.a. for M3 and M3A, respectively

Average life: 15 years