4 Ventures Limited

April 15th 2004

2003 Annual Results

Rob Woodward

Commercial DirectorChannel 4 Corporation

2003 results

• 4 Ventures ongoing businesses profitable in aggregate for the first time

• All four divisions ahead of targets

• Strengthened relationship with core channel and increased revenue contribution to 18%

• Channel 4’s exit from attheraces imminent

• Run off of FilmFour Ltd continues, all new film financing activities now undertaken by Channel 4

4 Ventures Ltd results

Turnover*

Profit / (Loss)*

2001 £m

2002

£m

AvgGrowth

101.5

123.9

+18%

(54.8)

(17.7)

+54%

2003 £m

138.8

4.1

2003 First year of operational profit

-60

-50

-40

-30

-20

-10

0

10

20

£4.1m

(£17.7m)

(£54.8m)

68%

123%

2001 20022003 2004

£?

Revenue growth slower but key management focus in 2004

0

20

40

60

80

100

120

140

160

2001 2002 2003

£138.8m£123.9

m£101.5

m

+22%

+12%

4 Ventures Organisation Chart

InteractiveA n d y T a ylo r

H e ad o f In te rac tive

4CreativeR ich ard B u rd e tt (L isa G re e n)

H e a d o f 4 C rea tive

124 FacilitiesT o n y C h a m be rla in (L isa G re e n)

H e a d o f 1 24 F ac ilit ies

4 ServicesM ich a e l C o m ish

M a n a g in g D ire c to r,

E4D a n B ro o ke

Film Four ChannelsT o m S ykes

G e ne ra l M a na g er

4 ChannelsD a n B ro o ke

M a n a g in g D ire c to r

Channel 4 InternationalP a u l S o w erb u tts

Consum er ProductsM ike M o rris

4 RightsP a u l S o w erb u tts

M a n a g in g D ire c to r

4 LearningH e a th e r R a bb a ttsM a n a g in g D ire c to r

4VenturesA n m a r K aw a sh

M a n a g in g D ire c to r4 V en tu res

Anmar Kawash

Managing Director4 Ventures Limited

2003

• Consolidation

• Put strong management team in place

• Identified low risk, low investment opportunities

• Solid platform to drive future growth

4 Channels

Loss reduced by 66%

Revenue up by 29%

• E4 revenue up by 34% to £56.9m

• FilmFour channels revenue up by 12% to £13.9m

2002 2003

£70.8m£54.9m

(£22.8m)

(£7.8m)

2003

2002

• E4 lost £5.1m (£16.1m 2002) a 68% improvement

• FilmFour channels lost £2.7m (£6.7m 2002) a 60% improvement

4 Channels - highlights

• E4 remains 2nd most watched digital channel amongst 16-34 year olds

• Successful launch of E4+1 growing total E4 share by 25%

• FilmFour channels is the largest non-Sky premium subscription service

• Launch of FilmFour Weekly increased overall viewing of FilmFour

• Total investment across 4 Channels in programme and other content £51.8m (2002: £47.7m)

4 Rights

Profit up by 7%

Revenue down by 10%

• Difficult international market conditions resulted in a 10% decline in revenues

2002 2003

£36.9m £33.3m

2002 2003

£10.9m£11.7m • Key focus on cost

efficiencies resulting in 7% increase in profit

4 Rights - highlights

• 4 Rights invested £7.4m into independent programming and co-production in 2003

• Total contribution to Independent suppliers of £13m including returns through exploitation of programming and co-production finance

• Channel 4 International signed significant deals with international media partners (Discovery, HBO)

• Consumer Products had successful year especially for publishing and DVDs

4 Learning

Profit reached £1.4m

Revenue up by 2%

2002 2003

£21.4m£20.9m

2002 2003

£0.1m

£1.4m

• Key focus on cost efficiencies resulted in improved profit

4 Learning

• Responding to changing market & aligning output closer to the channel with a focus on 14-19 olds & their broader education needs

• Higher profile productions scheduled in peak time e.g. Twelfth Night, Illustrated Mum and Teen Big Brother

• Launch of TexTips mobile services with 25,000 daily users, 5 million messages sent and £0.25 million profit generated in year one

• Continued investment in digital product range and sales capabilities

4 Services

Profit up by 143%

Revenue up by 16%

2002 2003

£19.4m

£16.7m

• 16% increase in revenues driven by strong performance in Interactive

2002

2003

(£3.5m)

£1.5m• 143% increase in profits

due to tight cost control, especially in Interactive

4 Services

• 4 Interactive profitable for the first time

• 4creative continues to build its expertise in sponsorship credits

• 124 Facilities focusing on driving more revenue from outside the Channel 4 group

Rob Woodward

Commercial DirectorChannel 4 Corporation

Commercial Division

Com m ercial AffairsS a ra G ea te r

H e a d o f C o m m e rc ia lA ffa irs

M edia ProjectsG ra em e M a son

H e a d o f M e d ia P ro je c ts

4 VenturesA n m a r K aw a sh

M a n a g in g D ire c to r4 V en tu res

Corporate Developm entM ich ae l H od g son

H e a d o f C o rpo ra teD e ve lo p m e nt

Channel 4 Television CorporationR o b W o o dw a rd

C o m m e rc ia l D ire c to r

2004 Priorities

• Achieve profitability across all existing businesses

• Deliver £10 million+ in profits from existing businesses

• Transition from consolidation to growth mode

• Actively invest in existing businesses and new growth opportunities

• Manage the implications of the Code of Practice on our 4 Rights business

• Renew partnership with Independent production sector

• Successful launch of More4