Cyfrowy Polsat S.A. Ord

Ladies and gentlemen, welcome to the second quarter 2022 results call of Polsat Plus Group. The results will be presented by Mr. Miroslav Błaszczyk, CEO, Mr. Maciej Stec, Vice President, Responsible for Strategy and the New Business, Mrs. Katarzyna Ostrop-Toman, CFO, and Mr. Stanisław Janowski, President of TV Polsat. After the presentation, we will hold a Q&A session. As always, you can post your questions in advance in the chat section. Mr. Błaszczyk, the floor is yours.

Good afternoon, ladies and gentlemen, and welcome. As usual, our agenda has four points. I will open the presentation by discussing the key events of the second quarter, then Staszek and Maciek will talk about the operating results of our business segment, while Kasia will present our financial results for the quarter. After a short summary, we will proceed to the Q&A session. Let's begin with the most important events. Quite a lot happened in the second quarter of 2022. First of all, we have finalized the acquisition of Port Praski, a unique real estate development project located in the strict center of Warsaw. We have also signed a joint venture agreement with the experienced European real estate development company HB Revis, and together we want to construct office buildings in Port Praski. We are also working hard to implement our new strategy in the field of clean energy as fast as possible. To this end, we have acquired a wind farm project located in Czuchów in northern Poland. 33 wind turbines will operate on it with total power of 72.6 MW. This new wind farm brings the scale of already initiated wind projects up to over 140 MW, more than half of our strategic target. What is more, Polsat Closed Group and ZITEPAK have developed from scratch the Polish hydrogen-powered bus, the NesoBus. Our bus received European type approval and had its official market launch this quarter. We have also begun the construction of a bus manufacturing plant in Świdnik. In our TMT business, we have extended our cooperation with Volleyball World for the next 10 years. Volleyball has always been an important part of our offer and our long-term social contribution. We have gained TV broadcasting rights to international men's and women's tournaments, especially the World Championships. Also, we are the only Polish operator offering Disney Plus productions which include the content of the highest quality – Disney, Marvel, Star Wars, Pixar, National Geographic and Star. Last but not least, the General Meeting of Cifrowy Polsat decided to pay out 661 million zlotys in dividends, which means 1.2 zloty per share. Moving on, let's take a look at the rating results of our group. Staszek, please go ahead.

Thank you, Mirek. I will discuss our performance in the media segment, TV and online. First, the online. As you can see, thanks to the acquisition of Interia, we are a strong number three player on the Polish online market and we continue to grow steadily in the segment. In Q2, on average, 21 million real users visited our website and application each month and we recorded a monthly average of over 2 billion page views. These are very good results and we will work to build and strengthen our position on the market of the Internet portals, both in terms of content and advertising. I am very pleased with the rate of growth of our online revenues, which continue to increase at a healthy double-digit rate since the acquisition of Interia two years ago. Just to remind you, our promise was to double EBITDA of Interia in few years from acquisition and we are well on track to deliver it. On the next two slides, we have the performance of our TV business. In Q2, our main channel Polsat held a leading position with 7.7% of audience shares. As for our thematic channels, they recorded a viewership of 15.1%. As a result, the total audience share of Polsat Plus group was 22.8 and, as you can see, was a little lower year-on-year, but in line with our long-term strategic target. The key driver behind this change was the compulsory switch to the new digital terrestrial signal DVB-T2. Many Polish households are not ready yet technologically to receive in the new standard, but commercial broadcasters were forced to use the new standard, while the public broadcaster was allowed to continue using the old DVB-T standard until next year. Despite slightly lower viewership figures in Q2 compared to a year ago, our position in the advertising market remains very strong. The broad market declined by 3.3% year-on-year while we maintained stable advertising revenues. As a result of our strong operating performance in Q2, our share in the TV ad market grew to 28.6%. Turning to our performance in the first half of 2022, our main channel was a clear leader in the commercial group with an audience share of 8%, while our portfolio of thematic channels gained a total of 15%. Consequently, our TV channels had 23% of audience shares. Again, in line with our strategic goal. As for our position on the advertising market in the first half of the year, as you can see, we have maintained a stable stream of advertising revenues on a declining market. As a result, our share in the TV advertising and sponsorship market grew to the level of 28.5%. To sum up my part of the presentation, I am very pleased with the operating performance of our group in the media segment, despite the headwind from the reframing of the digital terrestrial broadcasting signal. I am also very happy with the way Interia is progressing. That would be all from me. Thank you very much for your attention and I shall pass the floor to Maciek.