CDFs and CLIL

(‘000) Q4 2012 Q3 2012 Q2 2012 Q1 2012 Q4 2011

Direct subscribers¹⁾ at beginning 3,212 3,132 3,085 3,012 2,857

Gross additions²⁾ 260 188 124 155 246

Churn³⁾ –109 –108 –77 –82 –91

Net growth 151 80 47 73 155

Direct subscribers at end 3,363 3,212 3,132 3,085 3,012

Premium HD subscribers⁴⁾ (in ‘000) 1,514 1,337 1,172 1,071 974

Premium HD penetration rate⁵⁾ (in %) 45.0 41.6 37.4 34.7 32.3

Sky+ subscribers⁶⁾ (in ‘000) 929 730 584 508 411

Sky+ penetration⁷⁾ (in %) 27.6 22.7 18.6 16.5 13.6

Subscription ARPU⁸⁾ (in €, monthly) 32.77 32.22 32.16 31.76 31.29

Churn rate⁹⁾ (in %, annualized) 13.3 13.7 9.9 10.8 12.4

Churn rate⁹⁾ (in %, 12 months rolling) 11.8 11.8 11.5 11.3 11.0

Wholesale subscribers at end 125 126 129 130 131

1) Direct subscribers comprise monthly contract subscribers (residential customers and commercial subscriptions (e.g., bars, hotel rooms – including hotel rooms served by distribution partners – and other public venues)) to at least one of Sky’s channel pack-ages and/or subscribers who purchased pay-per-view. Direct subscribers also include subscribers in the context of cooperation arrangements (e.g., triple-play offers). In the context of the activation of new contracts and the termination of existing contracts transitional periods exist.

2) Gross additions consist of all new direct subscribers with an activated smartcard in a given period. New direct subscribers who had an active subscription within the last 12 months and have been disconnected are not included; these subscribers are classified as reconnections from former subscribers. Q4 2012 gross additions include the technical migration of 5K UPC wholesale customers.

3) Churn for a given period is defined as the number of direct subscribers who terminated their subscriptions, or who have not paid their bill and had their subscriptions terminated after the end of the Company’s dunning process, or who have left their contract for other reasons (e.g., deceased), less the number of reconnections from former subscribers (as described in footnote (2)).

4) Premium HD subscribers comprise subscribers who have subscribed to Sky’s Premium HD channels. The respective revenue contribution of Premium HD subscribers is included in ARPU.

5) HD penetration is defined as the relation of Premium HD subscribers to the total number of subscribers at the end of the respective period.

6) Sky+ subscribers receive Sky’s programming and Sky’s video-on-demand service with an HD-capable hard disk receiver.

7) Sky+ penetration is defined as the relation of Sky+ subscribers to the total number of direct subscribers at the end of that period.

8) ARPU is defined as monthly average subscription revenues (including pay-per-view) for a given period divided by the average number of direct subscribers in such period. Sky uses ARPU as a measure of its operating performance. Sky believes that ARPU is a useful measure of the extent to which Sky’s direct subscribers opt for the range of its programming. However, ARPU is not recognised as a measure under IFRS and should not be considered a substitute for any income statement data as determined in accordance with IFRS or viewed as a measure of profitability. Because not all companies calculate ARPU in the same way, Sky’s presentation of ARPU is not necessarily comparable to similarly titled measures used by other companies.

9) The churn rate for a given period is defined as the number of direct subscribers who churned their subscriptions during the course of a given period, divided by the average number of direct subscribers in that period (calculated by dividing the sum of the number of direct subscribers on the first day of that period and on the last day of that period by two) and multiplied by four when referring to a quarterly period, by two when referring to a half-year period and by one when referring to a full-year period.

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Sky Deutschland AG | Annual Report 2012

In 2012, Sky continued to deliver strong operational growth. The customer base grew significantly by 350,848 to 3,363,051 by the year’s end (2011:

3,012,203), representing an increase of 12 percent. Gross additions grew by 8 percent to 727,533 for full year 2012 (2011: 670,867). The 12-month roll-ing churn rate for full year 2012 was 11.8 percent (2011: 11.0 percent).

Sky HD continued to show strong growth with the total number of Sky HD customers reaching 2,249,112 by the end of the year. The number of Sky Premium HD customers grew by 55 percent to 1,514,036 at the end of 2012 (2011: 973,726), equating to 45 percent (2011: 32 percent) of Sky subscrib-ers deciding to order Sky’s market leading Premium HD offer.

Sky+, Sky’s fully integrated hard disk receiver, continued to generate strong demand. The number of Sky+ customers increased 126 percent to 928,742 at the year-end (2011: 410,836). Approximately 28 percent of Sky homes had a Sky+ receiver at this date, compared to 14 percent a year before.

Sky Zweitkarte (second smartcard) customers almost doubled year-on-year to 346,260 (2011: 174,620), as a growing number of households seek to enjoy Sky’s entertainment line-up in different rooms at the same time.

Sky Go – Germany’s and Austria’s leading over-the-top pay-TV service which was launched in April 2011 – also saw a substantial increase in usage with 33.3 million customer sessions in 2012 (2011: 7.6 million).

“The Artist” on Sky Cinema HD.

Management Report

671 Total subscribers at end of period (in ‘000)

12-month rolling churn rate (in %)

Premium HD subscribers at end of period (in ‘000)

Premium HD penetration rate (in %)

Sky+ subscribers at end of period (in ‘000) Sky+ penetration rate (in %)

74

Sky Deutschland AG | Annual Report 2012

Q1 – Q4 2012 Q1 – Q4 2011 Change Change (%)

Revenues (in € million) 1,333.2 1,138.7 194.5 17.1

Operating costs (in € million) –1,384.3 –1,294.2 –90.1 7.0

EBITDA (in € million)¹⁾ –51.1 –155.5 104.4 67.1

EBITDA margin (in %)³⁾ –3.8 –13.7 9.9

Depreciation and amortisation (in € million) 72.3 56.1 16.2 28.9

Amortisation of subscriber base (in € million) 1.4 8.3 –6.9 –83.1

EBIT (in € million)²⁾ –124.8 –219.9 95.1 43.2

EBIT margin (in %)³⁾ –9.4 –19.3 9.9

Revenues and earnings

The following figures relate to the twelve-month period of the respective year, unless indicated otherwise.

Revenues

Total revenues increased to €1,333.2 million (2011: €1,138.7 million). This was driven by an increase in subscription revenues of €185.0 million to

€1,220.2 million (2011: €1,035.2 million) due to both the growth in the number of monthly contract subscribers and the increasing ARPU. Hardware revenues increased to €42.9 million (2011: €34.1 million) mainly due to higher activation fees associated with new subscribers requiring a receiver.

Advertising revenues increased to €29.7 million (2011: €24.2 million). This was particularly due to higher advertising revenues associated with broad-casting the Fußball-Bundesliga. Wholesale revenues amounted to €13.3 mil-lion (2011: €13.9 milmil-lion). Other revenues decreased to €27.1 milmil-lion (2011:

€31.2 million). The decrease is mainly related to lower revenues from the sublicensing of sports and film rights as well as lower commissions.

Costs

Cost of sales totalled €1,119.7 million (2011: €1,043.1 million). Program-ming costs increased to €795.6 million (2011: €737.9 million), mainly driven by higher licence costs for sport events and third-party channels as well as increased costs associated with the launch of the new channel Sky Sport News HD on 1 December 2011 and the launch of Sky Atlantic HD. The slight

increase in technology costs by €0.8 million to €169.4 million (2011: €168.6 million) was primarily a result of an increase in cable broadcasting and transponder fees as well as higher encryption fees, which were driven by the increased number of subscribers; the increased costs were partially offset by proceeds from an arbitration proceeding and the release of accruals relating to encryption services. Customer service and other cost of sales increased to

€86.1 million (2011: €74.7 million), mainly due to the increased number of customer calls associated with the higher subscriber base. Hardware costs in-creased to €68.7 million (2011: €62.0 million) reflecting higher depreciation for receivers recognised under non-current assets and higher logistics costs.

Due to increased sales expenses as a result of higher gross subscriber addi-tions and higher marketing expenses in connection with marketing campaigns selling expenses increased to €230.3 million (2011: €216.6 million) General and administrative expenses increased to €114.1 million (2011: €96.7 million) primarily resulting from higher IT expenses and higher personnel expenses, particularly relating to the share-based compensation programs.

Amortisation of the subscriber base amounted to €1.4 million (2011: €8.3 million). In the first quarter of 2011, the subscriber base which related to an acquisition that was carried out in 2003 was fully amortised. The increase in amortisation and impairments recognised as cost of sales is mainly driven by the higher volume of rented receivers and the corresponding amortisation of the receivers over their expected useful lives.