1

Management Update

April 2016

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FY2015 Customers = ~ 1m

i-CABLE At A Glance

• Integrated services provider of television,

broadband and telephony services to ~1m

customers

• Near universal Hybrid Fibre Coaxial (“HFC”)

network in Hong Kong which can be easily overlaid

with a scaleable Gigabit Passive Optical Network

(“GPON”) for bandwidth-hungry consumers

• Most watched Pay-TV platform in Hong Kong over

the past 2 decades

• Awaiting formal free-to-air (“FTA”) license from

Hong Kong government

• One of the largest producers of television, film and

multimedia content based in Hong Kong producing

>10,000 hours of programming each year

• One of the largest TV and film libraries in Hong

Kong, with >30,000 hours of TV programmes on

top of >20 years of news footage

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Integrated Triple-Play

Communications Provider

FY2015 Revenue = HK$1,510m

951

171

100

Television(78%)

Broadband(14%)

Telephony(8%)

1 Mainly consumer broadband & telephony. 2 Includes inter-segment elimination.

1,130

348

32

Television(75%)

Internet & Multimedia¹

(23%)

Others²(2%)

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Track Record of Innovative

Multimedia Offerings 204-0-0

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2010

2012

2000 2002

2005

2015

1993

2016

1999

Apr-2002

Launch of fully

digitised news

production center,

first in Hong Kong

Jan-2015

Rollout of GPON

broadband

services

Jun-1993

Hong Kong Cable

awarded a

Pay TV license

Nov-1999

IPO to raise

US$550m for

20% of the

company

Jan-2000

Awarded telecom

license

Mar-2000

Commenced

broadband

operations

Jan-2010

Application

for FTA license

Jul-2012

Unprecedented

live coverage of

London Olympics

2012

Dec-2015

Upgraded

News platform

to HD

capabilities;

Launched

News hd209

Aug-2015

Renewed UEFA

Champions

League rights to

2018

Oct-1993

Went on air with 8

channels; Launched

Asia's first

24-hour news

channel

Jun / Nov-2010

HD broadcast of 2010

FIFA World Cup

and first ever HD

coverage of Asian

Games in Hong Kong

Mar-2005

Launched

Sundream

Motion

Pictures

Feb-2016

Launched

FanHub, an

enhanced Pay

TV service with

interactive

features

Jul-2005

Launch of

in-train TV

service

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Overview of Business Segments

• TV subscription business,

advertising, channel

carriage, programme

licensing, miscellaneous TV-

related businesses

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Television Others Internet & Multimedia

• Broadband Internet access

services, VoIP telephony,

and other Internet access-

related businesses

• Services delivered via HFC

and GPON

• Sundream Motion Pictures

Limited (“Sundream”): Movie

production and distribution

arm which acquires,

produces and distributes

films in Hong Kong and

internationally

• International Distribution

Limited (“iDL”): Distribution

arm of i-CABLE’s TV content

to third parties locally and

overseas

• Inter-segment elimination

Note: Revenue and EBITDA based on segment revenues, which include inter-segment revenue and EBITDA. 1 Reported EBITDA is defined as earnings before interest income, finance costs, impairment losses on investment, non-operating income / expenses, provisions for

income tax, depreciation of property, plant and equipment but after amortisation of programming rights and impairment losses on programming library (see note 4 to

the financial statements in i-CABLE 2015 Annual Report). 2 Adjusted EBITDA is calculated by adding amortisation of programming library and impairment losses on programming library to Reported EBITDA. Adjusted EBITDA

is shown for comparative purposes to provide EBITDA after incorporating all non-cash items.

Revenue 1,130 348 32

Reported EBITDA1 (46) 143 (117)

Margin (%) (4)% 41% NA

Adjusted EBITDA2 53 143 (88)

Margin (%) 5% 41% NA

FY2015 Key Financials (HK$m)

5

Financial Overview

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Television

• Television revenue has decreased in recent years mainly attributable to a decrease in revenue

related to Barclays Premier League (“BPL”)

— Accompanied by a corresponding contraction in programming costs to sustain EBITDA

• Proliferation of content-on-demand via OTT platforms both locally and internationally, as well as

intense competition via existing players and new entrants, have continued to put pressure on

subscription revenue and advertising income

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1 Includes channel service fees, premises lease rental and other revenues.

1,364 1,338 1,160

922 815

291 324

285

259 244

94 94

101

86

71

1,749 1,757

1,546

1,266

1,130

2011 2012 2013 2014 2015

(HK

$m

)

CATV Air-time Sales Others¹

May-2013: Cessation of Barclays

Premier League broadcast rights

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Television

• Continued, but more gradual, contraction of subscription TV customer base, amidst stabilising

ARPU as BPL impact is fully absorbed

Key Performance Indicators 204-0-0

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Note: The above key performance indicators include CATV subscribers with ARPU of HK$100 and above only. 1 Calculated as revenue divided by the average number of subscribers divided by 12, where average number of subscribers are calculated as the average of the

number of subscribers on the first day of the year and on the last day of each month of the year.

461 434

388 338

303

2011 2012 2013 2014 2015

Su

bs

cri

be

rs

('0

00

)

245 244 231 208 208 ARPU (HK$/month)¹

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Internet & Multimedia

• Fibre-speed broadband migration and perception of “better speed equals better quality” have put

pressure on Internet & Multimedia revenue

• Internet & Multimedia revenue has remained relatively stable despite a contracting subscriber base

as customer yield improves

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1 Broadband revenue includes broadband access revenue and homeline telephony revenue (mainly generated as part of bundled services for broadband

customers). 2 Revenue from “Others” includes online advertising revenue, content / portal revenue, interconnect revenues and other revenues.

267 290 305 319 310

73 49

43 46

38

340 338 348

365 348

2011 2012 2013 2014 2015

(HK

$m

)

Broadband¹ Others²

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Internet & Multimedia

• Active upselling to higher bandwidth plans upon contract renewal, and active rate adjustment in

subscription plan to align with competition in a stabilised market, have led to an overall increase in

blended ARPU

• I&M subscribers include subscribers of broadband and/or telephony services

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1 Based on annual broadband access and homeline telephony revenue divided by the average of the Internet & Multimedia subscribers, where average number of subscribers are

calculated as the average of the number of subscribers on the first day of the year and on the last day of each month of the year. The number of subscribers is net of double counting of

subscribers that subscribe to both broadband and telephony services. 2 Net of double counting of subscribers that subscribe to both broadband and telephony services. 3 Represents average of the monthly churn rate of the year. Monthly churn rate is calculated as the number of subscriber churn in a month divided by the opening number of subscribers

for that month. The number of subscribers for churn rate calculation is based on a combined gross subscriber base for broadband and telephony and does not exclude double-counting of

subscribers that subscribe to both broadband and telephony plans.

Key Performance Indicators

1.7% 2.2% 1.8% 1.5% 1.8%

% of Total Revenue

I&M Churn

Rate3

257 239 231 219

194

2011 2012 2013 2014 2015

Su

bscri

bers

('

00

0)²

98 108 117 125 I&M ARPU (HK$/month)¹ 98

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Others

• iDL monetises i-CABLE’s programme library through worldwide distribution

• Sundream’s revenue has gained traction as it ramped up its film production and distribution

capabilities

— During 2015, Sundream theatrically released 20 films in Hong Kong and Macau

• “Others” includes revenue for i-CABLE’s retail shops and unallocated revenue

— i-CABLE has closed its last retail shop at the end of 2015 given its low cost effectiveness

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15 20 31 31 28

12 16

22 33

27 14

17

15 6

2

(20) (21)(30) (35)

(25)

21

32

37 35

32

2011 2012 2013 2014 2015

(HK

$m

)

iDL Sundream Others Inter-Segment Elimination

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Adjusted EBITDA

• Adjusted EBITDA is calculated by adding amortisation of programming library and impairment

losses on programming library to Reported EBITDA

• These adjustments mainly relate to

— Television EBITDA, which is adjusted by adding-back the abovementioned non-cash expenses

from Programming / Content costs

— EBITDA derived from Sundream, for which a small amount of non-cash expenses are added

back to EBITDA from “Other & inter-segment elimination”

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Total Segmental Breakdown

Reported Adjustment

(HK

$m

)

7.9% 3.5% 12.6% 12.5% 7.2%

% of Total Revenue

Te

levis

ion

In

tern

et

&

Mu

ltim

ed

ia

Oth

er

& In

ter-

Se

gm

en

t

Eli

min

ati

on

2011 2012 2013 2014 2015

EBITDA 69 (30) 125 34 (46)

Adjusted

EBITDA 149 59 210 133 53

EBITDA 127 118 125 156 143

EBITDA (117) (110) (101) (103) (117)

Adjusted

EBITDA (110) (101) (92) (80) (88)

78

(22)

149

88

(19)

88

98

94

121

128

166

75

243

209

108

2011 2012 2013 2014 2015

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1,600 1,698 1,336

1,134 1,077

213 221

223

209 205

146 150

153

138 136

(16) (18) (24) (23) (16)

1,944 2,052

1,688

1,457 1,401

2011 2012 2013 2014 2015

(HK

$m

)

Operating Expenses

• Television operating expenses have gradually declined along with decline in television revenue

• Internet & Multimedia operating expenses have remained relatively stable, but have gradually

declined as % of segment revenue due to disciplined cost management

• For adjusted opex calculations, opex for Television and Sundream (under Others) are adjusted for

amortisation of programming library and impairment losses on programming library

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By Business Segment

91.5%

62.8%

Television Opex

as % of Segment

Revenue

I&M Opex

as % of Segment

Revenue

65.3% 64.0% 57.2% 58.9%

95.3% 89.5% 86.4% 96.7%

Before Adjustments After Adjustments

1,680 1,787 1,421

1,232 1,176

213 221

223

209 205

156 162

166

167 168

(18) (20) (28) (30) (20)

2,031 2,149

1,782

1,578 1,529

2011 2012 2013 2014 2015

(HK

$m

)

Television Internet & Multimedia Others Inter-Segment Elimination

96.1%

62.8% 65.3% 64.0% 57.2% 58.9%

97.3% 91.9% 104.0% 101.7%

1,680 1,787 1,421

1,232 1,176

213 221

223

209 205

156 162

166

167 168

(18) (20) (28) (30) (19)

2,031 2,149

1,782

1,578 1,530

2011 2012 2013 2014 2015

(HK

$m

)

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Operating Expenses

• Salaries & Benefits and Programming / Contents costs, which include amortisation of programming

library and impairment losses on programming library, account for the majority of expenses

• Advertising & Promotion costs have been the lowest cost component at ~1% of total revenue

• For adjusted opex calculation, Programming / Contents costs and Cost of Sales are adjusted for

amortisation of programming library and impairment losses on programming library

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By Category

92.1% Opex as % of

Total Revenue 96.5% 87.4% 87.5% 92.8%

Before Adjustments After Adjustments

96.3% 92.3% 94.7%

709 719 714 699 697

852 949 599

404 359

26 18

19

15 15

123 121

113

119 116

192 181

183

170 175

(50) (46) (43) (50) (47)

92 110

103

99 85

1,944 2,052

1,688

1,457 1,401

2011 2012 2013 2014 2015

(HK

$m

)

101.3% 101.0%

709 719 714 699 697

932 1,038

684 503 458

26 18

19

15 15

123 121

113

119 116

192 181

183

170 175

(50) (46) (43) (50) (47)

99 119

112

122 114

2,031 2,149

1,782

1,578 1,529

2011 2012 2013 2014 2015

(HK

$m

)

May-2013: Cessation of Barclays

Premier League broadcast rights

Salaries & Benefits Programming / Contents Advertising & Promotion Plant Operations

General Administration Capitalised Cost Cost of Sales

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84

106 116

148

120

2011 2012 2013 2014 2015

(HK

$m

)

Capex

• Capex has remained relatively stable in the past few years, except in FY2013, when capex spend

dipped primarily due to the near completion of the HD STB / production investments by 2012 as

well as a contraction of other capex spend, while the HD news upgrade started from 2014 onwards

• Additions to programming library comprises mostly of acquisition costs relating to movie and

drama content

— These costs exclude costs related to live sports content and self-produced shows, both of

which are expensed

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Capex Additions to Programming Library

% of Total

Revenue 4.0% 8.0% 8.9% 6.0% 5.0% 10.6% 7.6% 11.3% 10.1% 13.1%

1 Includes capacity related, subscriber connections, cable modem, and Multichannel Multipoint Distribution System (MMDS)/ Headend / Test Equipment and other

capex.

72 44 54

87 71

35

36 24

46 67

115

136

69

55 59

223 215

147

188 197

2011 2012 2013 2014 2015

(HK

$m

)

Fibre & Coaxial Network TV Production Equipment Others¹

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Summary Financials 204-0-0

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(in HK$ m) Ice Mgt Projections

FYE Dec 2011A 2012A 2013A 2014A 2015A

Total Revenue 2,110 2,127 1,932 1,666 1,510

Growth (%) 1% (9)% (14)% (9)%

Reported EBITDA 78 (22) 149 88 (19)

Margin (%) 3.7% (1.0)% 7.7% 5.3% (1.3)%

Adjusted EBITDA 166 75 243 209 108

Margin (%) 7.9% 3.5% 12.6% 12.5% 7.2%

Loss from Operations (180) (275) (88) (139) (242)

Margin (%) (8.5)% (12.9)% (4.5)% (8.3)% (16.0)%

Loss for the Year (179) (278) (93) (139) (233)

Margin (%) (8.5)% (13.1)% (4.8)% (8.4)% (15.4)%

Capex 223 215 147 188 197

Margin (%) 10.6% 10.1% 7.6% 11.3% 13.1%

Additions to Programming Library 84 106 116 148 120

Margin (%) 4.0% 5.0% 6.0% 8.9% 8.0%

Adjusted EBITDA Less Capex Less Additions to Programming Library (141) (245) (20) (127) (209)

Margin (%) (6.7)% (11.5)% (1.0)% (7.6)% (13.8)%

16

Business Transformation

Initiatives

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Challenges & Strategic Focus

• Service image suffering from legacy anecdotal and isolated incidences

• Under-investment in brand image

— In terms of re-building of image and word-of-mouth creation effort

• Under-investment in online sales / marketing and service portals

— Resulting in over-reliance on limited sales manpower which has driven up sales cost

— Lagging behind competitors in terms of promoting the online platforms for customer

service, customer communication, sales and renewals

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Brand Image

/ Marketing

Broadband

Experience

Content

Experience

• Under-investment in customer experience

— Aging of set-top boxes

– Less competitive functions compared to new OTT boxes

– Affected performance and stability

— Insufficient HD initiatives including capacity, news, & channel line-up

— Insufficient focus on multi-screen potential

– Full subscription value not realised

• Broadband image suffering from insufficient market education

— Market pre-empted by competitors’ efforts to promote Fiber-To-The-Home (FTTH), which

undervalues HFC broadband

— Market further affected by previous experiences of instability and speed limitations relating

to HFC infrastructure

1

2

3

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Brand Image / Marketing i-CABLE Brand Proposition 204-0-0

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Status Initiatives

“We are the missing piece to complete your

entertainment (and broadband) experience”

• Build confidence in and correct misperception

of i-CABLE’s brand, products and services via

mass communications

• Launch of a truly total multi-entertainment

platform, supplemented by a service-

guaranteed programme to address any

skepticism

• Enhance i-CABLE’s experience as the

innovative pioneer bringing PayTV to the local

market, introducing around-the-clock news

coverage, and producing groundbreaking

entertainment programmes

“ Retake the throne and reclaim the lost avenues of brand equity ! ”

1

Increase annual advertising and

promotion budget from ~1% to ~3 - 4%

of revenue

Correct inferior quality perception

relating to brand and products via

mass communications, supplemented

by tactical promotions

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ISO certifications obtained in Q1 2016

— ISO 9001:2008 Quality Management

System

— ISO 10002:2014 Customer Complaint

Management System

Continue to correct market

misperceptions

Formalise & continuously improve all

processes, procedures and policies as a

company-wide commitment

Closely monitor progress and

improvement as reflected in the

independent Annual Customer

Satisfaction Surveys

Actively communicate ISO certifications

and quality to customers via above-the-

line and below-the-line marketing

strategies

• i-CABLE’s service quality has progressively

improved in the last two years

• Consistently exceeding broadband service

pledges and performance targets

After-Sales Operations Service Operations

Brand Image / Marketing Service Image 204-0-0

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Status Initiatives

1

Service

Pledge

Service

Delivery

Standard

Service

Perf.

Target

2015 Actual Performance

Q1 Q2 Q3 Q4

Network

Available

Time

N/A 99% 100% 100% 100% 100%

Service

Restoration

1 working

day 95% 100% 100% 100% 100%

CS Hotline

Call Answer

Time

1 minute 90% 97% 89% 93% 92%

Handling of

Customer

Complaints

7 working

days 90% 99% 99% 99% 99%

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Brand Image / Marketing Online Service & Sales Portals 204-0-0

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Status

• Revamp of i-cable.com with an increased focus

on generating new sales and leveraging it to

become a key renewal platform

— Target to progressively migrate new sales

and renewal activities to the online portal,

reaching ~30% by 2020

— Attainability of targets ascertained through

benchmarking of competitors’ experience and

proof of concept in 2015

• New online service portals launched in 2015

— Continuous growth in number of visits to the

portals

— Improvement of service quality through a

reduction of human errors

1

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Content Experience Current Content Offering 204-0-0

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Portfolio

Sources: CSM Media Research (2011-2012); Nielson (2013-2015) for All Day All Time viewership (individuals aged 4+) 1 Excluded 8 TVBNV channels via Now TV platform in top 50 channel list only in 2013 and 2014; excluded all TVBNV channels via Now TV STB in 2015. 2 Included 8 TVBNV channels via Now TV platform in top 50 channel list only in 2013 and 2014; included all TVBNV channels via Now TV STB in 2015.

News & Information

(20 Channels) Entertainment (36 Channels)

Movies (10 Channels) Sports (12 Channels)

Kids (7 Channels) International (9 Channels)

Adult (5 Channels) Documentaries

(12 Channels)

Total 111 Channels (97SD + 14HD)

Programme offerings designed to bring the best tailor-made entertainment

portfolio to individual families

Viewership Share Among

Pay TV Operators

58% 60%

51%

57% 55%

30% 29%

25% 25% 26%

8% 7%

17% 16% 18%

4% 5% 7%

2% 1%

2011 2012 2013 2014 2015

CABLE TV Now TV¹ TVBNV² bbTV

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Content Experience HD Upgrade and Offering 204-0-0

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News

Sports

Entertain-

ment

Active upgrade of studio production

facilities from SD to HD

— First batch of HD channels rolled out

in 2009

— Studio-1 News platform upgraded to

HD at the end of 2015

— Finance programme and remaining

news production facilities undergoing

HD conversion in 2016

— Incremental capex of ~$100m over

next 2 years combined to complete

HD upgrade plan

Triple HD channels from 14 to 45

— Incremental capex of ~HK$20m over

next 2 years combined

Upsell premium package with new HD

channels at discounted prices to improve

overall penetration and ARPU

Focus on local market flavor to bring

distinct and premium content to our

viewers

• 5 production studios

• Largest studio is HD Ready with

Live & Recording capabilities

• 3 production studios

• All 3 studios are HD Ready with

Live & Recording capabilities

• 3 production studios

• All 3 studios are HD Ready with

Recording and / or Live

capabilities

Status Initiatives

Content

Library

• >30,000 hours in programs

• >20 years of news footage

• 25 film productions

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Content Experience FanHub and i-CABLE App 204-0-0

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ONE Box – Replace ALL Others ONE App – Serves ALL Devices

FanHub + i-CABLE App – Reaches ALL Target Segments

FanHub combines all features and

functions into one, and includes all the

popular content available in the market and

enables customers to download apps of

choice

i-CABLE App offers a multi-screen

platform, enabling access to the same

FanHub content across different devices,

whenever, wherever

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Content Experience FanHub 204-0-0

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Ability to raise ARPU

Enable new revenue models

— Pay-per-view

— Revenue share

Enrich HD channel portfolio

Two-way connectivity enabling

comprehensive customer behaviour

analysis

— Strengthen marketing and selling

effectiveness

• A full featured, “video-on-demand”, open

platform and app-enabled HD set top box

• Live channels and VOD content

• Enabled to view all FTA channels, free to

download app from open source

2

FTD

Unlimited

Apps

FTA

Channels

Pre-

installed

Apps

Cable TV

Content

“ Join our enemies, stay in the game … and retake the throne ! ”

Target: ~180k boxes by 2018

Budget: ~$90m investment over next 3

years combined

Cash Payback: ~1 year for FanHub box

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Content Experience i-CABLE App 204-0-0

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• Device neutral and infrastructure

neutral

• Single point of content management

for TV (FanHub), Web (i-cable.com),

Mobile and tablet (app)

• New applications for mobile and

tablets as subscription alternative

• Target launch: Q3 2016

2

“ Understand our customers, offer more than they can imagine … and

grow our share of wallet ! ”

Platform TV

Desktop/

Laptop

Tablet/

Phone

Technology

Enablement STB Web App

Product Name CABLE

TV i-cable.com i-CABLE

Picture Quality HD HD

HD

(live &

VOD)

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Broadband Experience

New 200M Offer Answers Most Of The Market Needs 204-0-0

0-101-101

255-204-153

146-208-80

255-255-0

0-50-101 3

Unleashes the true value of existing,

near-universal HFC infrastructure for

broadband service

Incremental initiative targeted at

customers who have issues with their

existing modems

Genuine alternative to fibre broadband

Money-back guarantee offered to

enhance customer take-up

Gradually upsell to existing low

broadband speed customers to reduce

churn and improve ARPU

• High quality Hitron cable modem provides better

speed and better technology to improve service

quality

• Economical DOCSIS-based products that allows

for high-speed broadband access

• Provide stability to speed over HFC network

Status Initiatives

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Broadband Experience GPON to Fuel New Growth Momentum 204-0-0

0-101-101

255-204-153

146-208-80

255-255-0

0-50-101 3

Leapfrogging technology from HFC to

GPON

Limited incremental costs given overlay

on HFC network

— Estimated ~HK$500m cumulatively

between 2015-2020

Clear network upgrade plan

— Commenced GPON upgrade in

January 2015

— ~184k GPON-ready homes and

subscriber base of ~2k as at FY2015

(1% penetration1)

— Targeted to reach 1.2m GPON-ready

homes and ~150k subscribers by

FY2020 (12% penetration1)

Status Initiatives

1 Penetration calculated as number of subscribers divided by the number of GPON-ready homes

Speed Description Limitations

xD

SL

<100

Mbps

Transmits over

copper telephone

lines at higher

speeds than dial-

up

Subject to

distance from the

telephone

exchange due to

limitations of

copper

HF

C

<200

Mbps

Combines optical

fibre and coaxial

cable to offer

digital pay-TV

and broadband

services

Requires all

subscriptions to

share the same

pipe, limiting

speed for

concurrent users

Me

tro

Eth

ern

et <1,000

Mbps

FTTB con-

figuration using

Cat-5e for the last

100 metres

Signals degrade

after 100 metres

GP

ON

500-

1,000

Mbps

FTTH connection Relatively high

cost

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Broadband Experience Pricing Strategy 204-0-0

0-101-101

255-204-153

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255-255-0

0-50-101 3

Significant potential for ARPU uplift with

the right product offering and marketing

Provide service guarantees to regain

customer confidence

Develop differentiated strategy to address

different target markets

Product offering:

— DOCSIS 3.0 using Hitron cable

modem for mass market (up to 200

Mbps)

— GPON for data hungry segment

(above 200 Mbps) at 20% premium

Targets to resume the growth trajectory of

the broadband installed base

— Double-digit annual growth rate

— Regain market share at mid teens by

2018

Status Initiatives

• i-CABLE’s ARPU still substantially below

competition across all product offerings

• Current product offerings include:

— DOCSIS 2.0: up to 10Mps

— DOCSIS 3.0: 100 / 130 / 200Mps

— GPON: 500 / 1000Mps

• Focused efforts to upsell DOCSIS 2.0

subscribers to DOCSIS 3.0 and GPON

• Early stage success of converting

customers to higher speeds plans during

contract renewal process

191

125 85 63 38

28

76 110

123 131

0.00.0 0.2 0.6

2.0

218 201 196 186

171

2011 2012 2013 2014 2015

Su

bs

cri

be

rs

('0

00

)

Docsis 2.0 Docsis 3.0 GPON

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Upside from FTA TV Roll-Out 204-0-0

0-101-101

255-204-153

146-208-80

255-255-0

0-50-101

• Via Fantastic TV (affiliate)

• Applied for a FTA license in January 2010

• Received in-principle approval in October

2013 by Chief Executive-in-Council

— License to be granted upon final

approval by Chief Executive-in-Council

• Incremental business leveraging on

i-CABLE business

Status Initiatives

Target to launch in 2H 2016 at the

earliest

Leverage on CABLE TV’s programming

and network infrastructure and

capabilities

Sharing costs with CABLE TV resulting

in a more robust business model to

achieve early-on breakeven

Committed to commence integrated 24

hours Cantonese and English channels

within 12 months and 24 months

respectively from the grant of license

Committed to invest over HK$1bn in the

initial 6 years from the launch of FTA

services, of which:

— ~HK$40m on capex

— ~HK$960m on programming

30

i-CABLE Communications Limited

(the “Company”)

HKSE Stock Code: 1097.HK Important Notice

The information set out in this Management Update does not constitute a public offer or an offer to sell or solicitation of any offer to purchase any

securities, or any recommendation in respect of such securities.

Disclaimer

All information and data included is solely for the use in this Management Update and certain information or data (including preliminary

unaudited numbers and unaudited financial numbers derived from the Company’s management accounts) has not been independently verified

and we will not take responsibility for the accuracy of such information or data.

The financial information in this Management Update, unless stated otherwise, is not directly extracted from our audited consolidated financial

statements and has been prepared based on management information and has not been audited or reviewed by our reporting accountants or other

advisors.

This Management Update contains certain projections, estimates, forecasts, targets and other forward-looking statements with respect to the

financial condition, results of operations, financial position and business of the Company and its subsidiaries (“the Group”) (together, “forward-

looking statements”). Forward-looking statements are statements about the future and are inherently uncertain and generally based on

assumptions. Such forward-looking statements are not a reliable indicator of future performance of the Group, as the assumptions and subjective

judgements involved in making them may or may not prove to be correct. There can be no assurance that any of the matters set out in forward-

looking statements are attainable, or are complete or accurate. Actual results, performance or other future events may differ materially from those

stated, implied and/or reflected in any forward-looking statements due to a variety of risks, uncertainties and other factors. Any such forward-

looking statements are based on the beliefs, expectations and opinions of the Group at the date hereof, and the Group does not assume, and hereby

disclaims, any duty to update them. This Management Update also contains extracts of certain pro forma financial information of the Group

which have been prepared for additional information and illustrative purpose only (“unaudited financial information”). No reliance should be

placed on, the fairness, accuracy, completeness or correctness of the information or opinions (including the forward-looking statements and

unaudited financial information) presented or contained in this Management Update.

Potential Investors and Shareholders should exercise caution when investing in or dealing in the securities of the Company.

i-CABLE, its subsidiaries, affiliates, directors and employees hereby disclaim (i) all express, implied, & statutory warranties of any kind to user

and/or any third party including warranties as to accuracy, timeliness, completeness, or fitness for any particular purpose; and (ii) any liability

whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the information and data contained herein.