Letter of the President of the Management Board

 

Ladies and Gentlemen,

Over the past year, Polsat Plus Group has grown in every segment of its business. In the area of telecommunication, it developed 5G Plus, which already covers 23 million Poles, launched 5G Ultra with speeds of up to 1 Gbps, which already covers 6 million people, and accelerated the speed of Netia's fiber to 2 Gbps. With the new frequency won in the 5G auction, it will further expand the Plus 5G network to provide users with the best possible service performance.

In order to consistently develop its second strategic pillar - content - and provide viewers with the best content, TV Polsat acquired, among others, a majority stake in the companies that own the naEkranie.pl service and the 4fun.tv, 4fun Kinds and 4fun Dance channels, as well as the rights to handball league matches and extended the rights to the European Volleyball Cup until 2029 and to basketball league matches. Polsat Box Go launched a new Start package for PLN 30 per year, offering more than 40,000 hours of series and entertainment programs from TV Polsat channels.

Successes in the Clean Energy are include the start of green energy production by wind farms in Miłosław and Kazimierz Biskupi, the expansion of the solar farm in Brudzew, the opening of the NesoBus hydrogen bus factory in Świdnik, and the launch of Poland's first publicly accessible hydrogen filling stations in Warsaw and Rybnik.

We entered into a strategic partnership with Google Cloud, under which Google signed its first agreement in Poland to purchase clean and green electricity from the Przyrów wind farm, and our Group will benefit from Google Cloud's cloud solutions, accelerating its technological development and digital transformation.

In 2023, our green energy sources produced 665 GWh of energy, and almost 100% of the energy consumed by our Group companies came from renewable sources. The estimated greenhouse gas emissions avoided by our Group through the development of our own RES amounted to 316,000 tons. The green hydrogen-powered NesoBus has been tested in Warsaw, Gdansk, Gdynia, Konin, Szczecin and Wroclaw, among others, and the cities of Rybnik, Gdańsk and Chełm have decided to purchase them for their residents.

In total, we provide more than 20 million telecommunication and TV services to individual customers and businesses and institutions. Nearly 2.5 million of our customers take advantage of our multiplay offers and achieve tangible financial benefits by combining the services of Polsat Box and Plus. We are the only telecommunication and pay TV operator to offer access to this Disney+ service in bundled offers with our services. We provide business customers with advanced ICT services, particularly cloud, data center and cybersecurity solutions. We offer viewers 43 of our own channels, and the total audience share of TV Polsat Group channels was 22% last year, giving us a strong position in the TV advertising market with a share of almost 29%. Our focus in the online media segment continues to be the creation and delivery of valuable content. The Polsat-Interia Group has almost 21 million unique users per month and is one of the three largest providers of online services in the country.

Polsat Plus Group's revenues increased to PLN 13.6 billion, EBITDA to PLN 3 billion and net profit to PLN 300 million, thanks in part to the growth of the green energy segment. We achieved these results in a difficult macroeconomic market. We successfully completed the refinancing of our debt and issued bonds linked to our sustainable development goals in the amount of approximately PLN 3.9 billion, using these funds to the most part to effective implementation of the 2023+ strategy.

Our Group's performance is due to the hard work of several thousand employees - I would like to thank them all for their great commitment, perseverance and countless ideas. I would also like to thank our shareholders, financial partners and the representatives of the Supervisory and Management Boards of the Group's companies - it is their trust and support that makes the effective implementation of our strategy possible.

We have ambitious plans and are ready to redouble our efforts to achieve our goals. The trust of our clients and viewers motivates us to work hard and develop Polsat Plus Group. It is with them in mind that we take on new challenges, so that they can enjoy ever better quality services - reliable and fast Internet, a wealth of content on any device, valuable Internet portals, and green and cheap energy, whose spread will give us a cleaner and healthier environment.

 

Yours faithfully,

 

Mirosław Błaszczyk

President of the Management Board, Cyfrowy Polsat S.A.