Cyfrowy Polsat S.A. Ord

Good afternoon everyone and welcome to Polsat Group's Q1 2020 results call.

Q1 has been a busy quarter. So this time each of us will talk about the most important events in Q1. Then, traditionally, Staszek and Maciek will tell you about our operating performance, followed by the comments from Kasia on our financial performance. Let me summarize this interesting quarter briefly. The number one subject in Q1 was of course the coronavirus pandemic. To my great satisfaction, Olsas Group as a whole adapted to this difficult situation in smooth and efficient ways. I will say more on this in a short while. A few weeks ago, we have informed the markets that we have successfully finalized the complicated process of refactoring our debt. Kasia will give you an insight into this process shortly. Moreover, I am very happy to say that we have signed a preliminary agreement with Bauer Media to purchase Interia Group, owner of one of the top three Polish horizontal portals. My team will give you the details of this deal. And last but not least, just this Monday, Polsat Group has launched the first in Poland commercial 5G network. It will be my pleasure to tell you more on this topic. Let's turn to the details of the events I have just outlined. First, the impact of the coronavirus pandemic. On slide 7, you have a summary of reasons why we believe that our business is largely immune to the effects of the pandemic. Please remember that our business model is based predominantly on subscriptions and diversified portfolio of products and services, which ensures a predictable and stable stream of revenues. Connectivity today has become as essential as electricity, driving up voice and data volumes. Combined with the price increases on the mobile market of the past several quarters, this will support ARPU levels in the coming months. Among headwinds, we expect a slowdown on the advertising market, but it is still too early to talk about the ultimate impact of the pandemic on this business area, because there are still too many question marks. In terms of liquidity, we are definitely on the safe side given our high level of cash generation. All in all, I needed to underline the ultimate impact of COVID-19 on our group depends mainly on two issues. How long the pandemic will continue and how much pressure it will exert on Polish and global economies. Given we perceive our business as largely immune to COVID situation, Polsat Group has engaged actively in the fight to suppress the pandemic. Among the many initiatives that we have taken since mid-March, I would like to turn your attention to several chosen ones outlined on slide 8. With the support of Mr. Solos, our major shareholder, Polsat Group has purchased medical equipment to help test 200,000 Pols. Moreover, we donated connected tablets for children in need, offered our customers free data packs. Telebizia Polsat earned a special commercial block and donated the proceeds along with own funds to the cause as this Polsat Foundation. Our news and other TV stations have been very active in providing information and so fighting the pandemic. So far, Polsat Group has provided aid worth almost 20 million zlotys. I will now give the floor to Kasia to discuss refinancing. Kasia, please go ahead.

Thank you, Mirek, and good afternoon, everyone. In spite of the difficulties caused by the pandemic, we have finalized the complex and multi-stage process of debt restructuring that gives our group greater flexibility of operations and further development prospects. One of the changes in the financial documentation was the incorporation of the IFRS 16 standard, which is connected with shifting the main governance upwards by 0.3 times a BPA. We have also expanded the maturity profiles of our debt to adapt them to our goals related to acquisitions and dividends. We succeeded in diversifying our debt structure, shifting focus more towards bonds. Slide 11 summarizes the whole process, which was initiated over a year ago with the refinancing of the series A bonds, followed by an additional bank loan and the issue of green bonds to be completed with the renegotiated terms of the SFA. As you can see on slide 12, we now have a very comfortable situation with respect to that maturity with the first sizable bullet payment falling in 2024. As I have already said, this structure not only allows us to continue our dividend policy, but also guarantees operating flexibility and the flexibility to invest in the future development of the group. And now,