Letter of the President of the Management Board

Ladies and Gentlemen,

2024 was a year of notable success for Polsat Plus Group. I am pleased with the operational performance achieved in all business segments, which, combined with cost discipline, resulted in strong financial results. In addition, I am proud to report that we are close to achieving the objectives of our Strategy 2023+ and completing the construction of our new business pillar – green energy and hydrogen. Last year, we also worked intensively on the implementation of our ESG strategy, including the adoption of new reporting standards - the European Sustainability Reporting Standards (ESRS).

It is with great pleasure that I present to you Polsat Plus Group’s annual report for 2024, which includes the Group's first sustainability report prepared in accordance with the new standards. However, before inviting you to read the publication, I would like to share with you the most important achievements and events in a telegraphic summary.

26 million people within the reach of Plus 5G network

Last year, Polsat Plus Group expanded the reach of its high-speed 5G network to cover 26 million people and plans to continue its development using newly acquired frequencies. Additionally, almost 17 million Poles can now access the 5G Ultra network, offering maximum technological speed of up to 1 Gbps. Netia and Plus fixed line Internet services are available to nearly 11 million households.

In the context of sustainable development and social responsibility, Plus’s involvement in providing mountain and water rescue numbers and the Ratunek (Rescue) application, promoting safety, introducing the Stop Hejt (Stop Hate) and Bezpieczna Rodzina (Safe Family) services and providing emergency assistance to flood victims in the form of a free 250 GB Internet package cannot be overlooked.

Significant strengthening of the sports offering

In the media segment, our TV channels achieved very good viewership figures thanks to our attractive program scheduling, and we also have a strong position in the TV advertising market. To provide our viewers with the best content, we have strengthened our sports offering with prestigious events from a variety of disciplines, including the UEFA Europa League and Conference League, the German Bundesliga, Ligue 1 McDonald’s, and Formula 1. We are also looking forward to the return of the national men's and women's handball teams to Polsat.

Polsat-Interia Group has consistently expanded its position in the online segment and was the number one online publisher in Poland. In 2024, it achieved the highest reach in terms of number of users five times, the most of any online publisher. It was also the leader in the mobile category - it ranked No. 1 in this category nine times.

Sports sponsorship and charity work have a firm place in our hearts and in our social mission. The Polish national volleyball team achieved another great success by winning the silver medal at the Olympic Games in Paris. As we have been supporting Polish volleyball for 27 years, this makes us very proud. For the 21st year in a row, we realised the "Santa's Advertising Block" for the benefit of children under the care of the Polsat Foundation and a special advertising block of Telewizja Polsat and the Polsat Foundation "Advertising to the rescue. Together for the flood victims!”

More than 1 TWh of energy from our own renewable sources

In my view, it is the green energy sector that positions Polsat Plus Group as one of the leaders in sustainable development activities. Thanks to dynamic investments, which are nearing completion, we have become a leading producer of clean energy and have built a complete hydrogen economy chain. At the same time, we are maintaining our strategic goal of generating EBITDA of around PLN 500 million from this business segment already in 2026, which, remarkably, will be achieved with investments more than PLN 1 billion lower than originally expected.

The most significant events of the past year in this pillar were primarily the commissioning of two more wind farms in Człuchów and Przyrów, the dynamic construction of a new 139 MW wind farm in Drzeżewo, the start of green hydrogen production in Konin, the commissioning of additional NESO hydrogen refueling stations and the winning of additional tenders for the supply of Nesobus buses to various cities in Poland.

For the sake of the environment, our green energy sources produced more than 1 TWh of energy in 2024, an increase of more than 50% over the previous year. 95% of the electricity consumed by our Group came from renewable sources.

Growth in key financial indicators

We ended last year with exceptionally good financial results. I would like to highlight the strong growth we achieved - Group revenue increased by 4.7% year-on-year to PLN 14.3 billion, while adjusted EBITDA grew by a robust 9.6% to PLN 3.3 billion. Our priority remains to effectively manage cash flow across our broad portfolio of strategic investments and to tightly control our costs.

About sustainability

2024 has also been a challenging year in terms of sustainability. During this time, we have developed and updated key policies, procedures and documents that strengthen our corporate governance.

It is worth noting that we are once again disclosing information in line with the EU taxonomy. We also continue to monitor our greenhouse gas emissions across all three scopes.

Acknowledgements

I am proud of all the projects completed and the successes achieved in 2024. I would like to thank the employees of Polsat Plus Group for their commitment, perseverance, and many ideas. The preparation of this report was possible thanks to the excellent cooperation of many people from different business areas.

I would like to take this opportunity to thank all stakeholders for their participation in the dialogue and in the double materiality study, which helped us to identify the environmental impact of our organization for the sustainability statement. I would also like to thank our shareholders, financial partners and the representatives of the Supervisory Boards and Management Boards of the Group companies - thanks to your tremendous support and trust, we are consistently achieving our goals.

To our customers and viewers, thank you for being with us, for appreciating the quality of our services and for motivating us to do even more. Our priorities will always be to develop and increase the value of each of our businesses so that our customers benefit from ever better services and our shareholders enjoy the satisfaction of being part of our Group.

 

Yours faithfully,

 

Mirosław Błaszczyk

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