Strategic investments of Polsat Group 5 December 2017 Cyfrowy Polsat S.A. Capital Group
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Index 1. Acquisition of stakes in Eska TV, Lemon Records and TV Spektrum 2. Acquisition of a stake in Netia 3. Key assumptions of the acquisition of Netia 4. Summary
Mission of Polsat Group Who o we e are We are the leading provider of entertainment and telecommunication in Poland. Our r mis ission Our mission is to create and deliver the most attractive TV content, telecommunication products and other services for the home, as well as individual and business customers, using state-of-the-art technologies to provide top quality multiplay services that match the changing needs of our customers, while maintaining the highest possible level of their satisfaction. 4
1. Acquisition of stakes in Eska TV, Lemon Records and TV Spektrum
New channels will substantially strengthen Telewizja Polsat’s current offer and portfolio NE NEW NE NEW 6
Structure of the transaction • TV Polsat acquired a 100% stake in ESKA TV and a 100% stake in Lemon Records • Moreover, TV Polsat acquired a 34% stake in TV Spektrum 1 st st stage 1 st st stage 1 st st stage and concluded the preliminary purchase agreement for additional ESKA TV S.A. Le Lemon Records TV Spe pekt ktrum 15% stake 100% 100% Sp. p. z o.o. Sp. p. z o.o. 100% 100% 34% 34% • Acquisition consideration amounted to ca. PLN 103m and was financed from own resources 2 nd nd stage • The transaction will result in (prelim limin inary y agreement) t) expected synergies estimated TV Spe pekt ktrum Sp. p. z o.o. at ca. PLN 15m per annum +1 +15% 5% 7
2. Acquisition of a stake in Netia
Netia perfectly fits into Polsat Group ’s mission, vision and strategic goals 20 płatna TV NGA fixed broadband pay-TV mobile content telefonia telephony komórkowa kontent Internet LTE/LTE-A LTE/LTE-A 9
Why are we buying Netia? Valuable infrastructure Complementary broadband technology, extensive backbone provides higher flexibility in further development of telecommunication network Attractive customer base Potential for upselling products on B2C market, significant strengthening of competitive position on B2B market Completely new market Existing wireline access network already reaching several dozen of the biggest cities in Poland 10
Valuable infrastructure • Countrywide fiber-based infrastructure Current topography of of Netia’s fib fiber bac backbone ne network • 20k km of fiber backbone network (1) • municipal fiber infrastructure wiring 48 biggest Polish cities • own access network covering 2.5 million locations • Infrastructure of Netia allows for fast and cost-efficient increase in capacity of Polsat Group’s mobile network • Higher flexibility in further planning of telco infrastructure expansion – targeted investments at both mobile main nodes and fiber technologies fiber links Note: (1) 12k km of own network and 8k km of leased lines 11
Attractive customer base • Almost 1 million B2C customers (1) Current acc access s ne network in majo in ajor cit cities in in Pola oland provides a potential for upselling Polsat Group’s products based on the multiplay strategy • 25k B2B customers and direct access to >800 key office buildings in Poland (already wired) • Localization of current Netia customers and dispersal of its access network opens a completely new market for Polsat Group – big cities and metropolitan areas Note: (1) Netia identifies its customers based on unique addresses 12
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