INTEGRATED ANNUAL REPORT FOR MULTICHOICE SOUTH AFRICA HOLDINGS (PTY) LTD AND PHUTHUMA NATHI INVESTMENTS 2 (RF) LTD

We added JOOX, a music streaming service, free to our Compact, Compact Plus and Premium subscribers. We continue to offer Showmax free to Premium subscribers and discounted at R49 to Compact subscribers, to improve the uptake of the product. Our Connected Video division has focused its efforts on our digital properties, and we are seeing positive results. Our online properties are gaining traction and saw a good increase in unique subscribers across our online offerings. Explora penetration, BoxOffice rentals and connected Exploras continue to grow and add value to the customers’ experience. Our digital strategy is key for securing our future and we have improved our online user base with a promising portion of the South African subscriber base now utilising our online products. Content Our programming, which includes local and international general entertainment and sport content, remains relevant to our subscribers. We are developing and investing in more local content for both our pay-TV and OTT offering. Our continued investment in local content, primarily through the Mzansi group of channels, is well received by subscribers with our channels among the top performers in their peer group. It is crucial to contain content costs and navigate cost pressures from suppliers as a consequence of competition. Customer service Our customers are the cornerstone of our business. We are committed to delivering exceptional experiences at every touchpoint, and we value authentic communication and feedback. We continuously track and analyse our interactions with customers to improve on the services we provide, and the way customers experience our brands. During FY2019, our consumer satisfaction score (CSAT), measured by customer surveys improved to 76%. We will continue to transform our customer experience by simplifying complex business processes, reducing customer effort, and using AI to automate non-value-adding transactions and optimise self-service. Competition Competition continues to increase in our markets with video consumption on online platforms growing and global players like Netflix, Amazon, YouTube and Facebook continuing to offer alternatives in our market. In addition, local streaming players like Kwesé, Cell C black and Vodacom VideoPlay have also emerged, and free-to-air platforms in the form of OVHD and SABC are also competing against us. Organisational structure During FY2019, we concluded a restructure to align our structures with the company strategy and to reposition the business for growth. The work in reducing our cost base will continue in the future to maintain our margins. We will continue to develop and invest in digital systems, ML and AI capabilities to enable our growth in the future, including investing and developing the required talent and capabilities. Calvo Mawela Tim Jacobs Chief executive officer Chief financial officer 26 July 2019 23 MultiChoice South Africa Holdings Proprietary Limited integrated annual report 2019 LEADERSHIP AND STRATEGY