INTEGRATED ANNUAL REPORT FOR MULTICHOICE SOUTH AFRICA HOLDINGS (PTY) LTD AND PHUTHUMA NATHI INVESTMENTS (RF) LTD

LEADERSHIP AND STRATEGY UNDERSTANDING RISKS AND OPPORTUNITIES continued Priority Risk Description Our response Opportunities Relevant capital 1 Regulatory Potential changes in regulatory policy and legislative framework Compliance and proactive engagement with regulators and industry bodies Improved understanding of industry complexities and challenges Social and relationship capital 2 Disruption Technology disruption results in increased competition, and increased competition for content rights Invest in product and service innovations and retain content rights Continuous re-evaluation of products and services to unlock new opportunities Social and relationship capital Intellectual capital 3 Content costs Content rights are becoming increasingly expensive We regularly evaluate our content contracts to ensure they continue to provide value and remain competitive Increased investment in local content Social and relationship capital Intellectual capital Financial capital 4 Economic and currency risk Consumers are facing increased economic pressure, potentially affecting the size of our customer base The value of the local currency relative to supplier currencies places increased cost pressure on securing international content Continued focus on reducing costs and improving efficiencies ensures we remain competitive Effective use of hedging instruments to manage volatility in cash flows Emerging technologies and innovations could unlock efficiencies and reduced costs Financial capital 26  MultiChoice South Africa Holdings Proprietary Limited integrated annual report 2019