DIRECTV IN THE PHILIPPINES

A Foreign Direct Investment Analysis

By:

Rory Schneider, Mark Zabierek, Stephen Pokora, Kent Taylor, Brett

McLaren

DIRECTV at a glance…

2009 Results• $21.6B in Sales• $2.4B in FCF

Key Metrics• Growth in Subscriber Base• Growth in ARPU

DIRECTV U.S.

2009 Subscriber Base18.5 Million (0% growth)

2009 ARPU$85.48 (1.9% Increase)

DIRECTV Latin America

2009 Subscriber Base6.5 Million (11% growth)

2009 ARPU$57.12 (3.7% Increase)

Where do we go from here???

Philippines

Key Highlights• Island Country• Minimal Cable

Infrastructure• 97M Population• Young, Educated• Consumer

Economy• 74% TV

Penetration• Marketing Friendly

Philippines

WTO Membership

1995

Electricity Infrastructure

Initiative

Open to Investment

GOVERNMENT & POLICIES

40%Maximum

Stake!

.

.

.Corruption!

30%

…“Filipino First”

Premier Content

40% Stake

INVESTMENT OPTION

CUSTOMER…

Limited Purchasing

Power

High Proportion of Consumer Spending

Low ARPU

RECOMMENDATIONS

1. Philippines Ideal Hub for SE Asia

2. Consider more favorable suitors in the region

3. Establish DIRECTV SE Asia and begin incremental expansion

$300 M

A Single Satellite can provide coverage to the entire SE Asian

Region

Philippines

QUESTIONS ?