Cyfrowy Polsat S.A. Ord

Ladies and gentlemen, welcome to the second quarter 2021 results call of the new Polsat Plus Group, as you can see in the brand new branding. As always, we will begin with a presentation followed by the Q&A session. If you have any questions, you are welcome to post them in the chat section. I will now give the floor to the CEO of CIFRA Polsat, Mr Miroslav Błaszczyk. Please go ahead, sir.

Good afternoon, ladies and gentlemen, and a warm welcome to the results call of Polsat Plus Group for the second quarter of 2021. To begin with, I will tell you about the most important events that happened in the second quarter of this year and I will invite Maciek to talk about our key project. Then, as always, Staszek will discuss the performance of the media segment, while Maciek will tell you about the operating results of our B2C and B2B business segment. After that, Kasia will present our financial results. I will conclude our presentation with a short summary and then we will move on to the Q&A session. The key events of the second quarter. In July, we have successfully finalized the deal with Celnex Telecom regarding the sale of our infrastructure unit. I am convinced that these multi-billion delays will continue to be very beneficial business-wise in the future. As promised before, we are dynamically building the best 5G network in Poland. Today, already more than 15 million inhabitants of Poland are in the coverage of the best 5G network from PLOS. We have also finalized the acquisition of the remaining state in Latvia in order to continue building our convergent offer in line with our business strategy. As you already know, we have also decided to share profits with our shareholders and pay a record high dividend of 767 million zlotys, 1.2 zloty per share. And finally, a project that is a source of pride and satisfaction for us. We have introduced a new strategy concerning the portfolio of brands from Polsat Plus Group. Maciek, could you please tell us about the details of this project?

Of course, Mirek. Good afternoon, everyone. Like Mirek said, this project is a milestone in our 30-year history and we are very excited as we begin this unique and challenging rebranding project. The world is changing and we are changing with it. The needs of our customers are evolving and we believe that this strategic project is going to help us meet those needs. We want to harmonize all the brands of new Pulsat Plus group in order to simplify communication with our customers and to enhance the clarity of our services. We have decided to single out two key brands. Plus representing connectivity and Pulsat representing content. The PLUS brand stands for connectivity, and within this brand, the most important strategy today is the development of 5G, as we want to provide better and better services to our customers. Under the PLUS logo, we are going to offer postpaid and prepaid mobile services, voice services, 5G internet, and fixed-line broadband. The Polsat brand combines content production and distribution. We have chosen to stick with this brand because our viewers and customers know it and like it, and value it very highly. There are two main changes here that I wanted to tell you about. I think the biggest change, and perhaps surprise, is replacing the Sephora Pulsat brand with Pulsat Box. We have used the Ceprovi Pulsat brand for over 20 years. It was introduced at a time of analog television when digital broadcasting was a brand new technology. Today, we want Pulsat box to be a magic box that is technology agnostic and which gives every customer easy access to every technology, be it satellite, IPTV, or OTT, Available via Setup Box, online service and application on the wide variety of devices, wherever you are and whatever time you want. Pulsat Box just gives you freedom to access the world of attractive content. In this spirit, we have decided to harmonize the IPLA and Cifrowe Pulsat GO brands with the larger Pulsat brand and join them under one name – Pulsat Box GO. This is going to be an online service and a new application providing rich and diversified content on demand and over 100 linear channels available in a paid model, so now ads. We decided to clearly separate our pay and free of charge service, so we have also created a website, a new application, Post.go, which is already available in App Store and Google Play. This is a free application, which means that it will be fully financed from advertising revenue. Within our TV production business, we already have almost 40 TV channels that we produce ourselves, and a large part of which already have new logotypes and graphics. As you can see on the slide, these logos fit perfectly with the new visual concept. They are all similar and easy to identify as brands from Polsat Plus Group, yet they all have unique features. We communicate all these changes with the marketing claim based on the slogan uniquely personal. This means that our customers are free to choose whatever they want. They can fully and completely personalize our products to suit their needs and taste. So to summarize, the core idea of the new branding strategy is content plus connectivity. Polsat and Plus. Following the harmonization of Polsat Group brands, the Cifrowe Polsat brand will be replaced by Polsat Box and two new websites and application, Polsat Box Go and Polsat Go, will be introduced. In the long run, we expect the harmonization of brands to generate synergies between the brands and consequently reduce communication costs. Okay, let's go to slide number seven. With this slide, we wanted to show you what the rebranding looks like in practice. Major marketing and outdoor campaigns have already been launched. We have published flyers, branded our marketing materials, prepared special gadgets, all in order to familiarize our customers with the new group brands. As you can see, the green represents connectivity, that is the PLUS brand, while the yellow stands for content, the Pulsat brand. We have also applied flexible forms, or skins as we call them, that can be easily wrapped around any flat or dimensional shape. I believe it looks very fresh and modern. And again, every marketing element clearly fits to the new Polsat Plus Group branding vision. I really like it and I'm really excited about that. Here I would like to show you a short video, our new ad spot, presenting our new brand concept, our group manifesto. You may not know the faces that appear in this spot. These are popular Polish celebrities. Those of you who have visited us in person may recognize our capital city, Warsaw, in the background. And I'm sure all of you will recognize the music. Enjoy.