Cyfrowy Polsat S.A. Ord

Ladies and gentlemen, a warm welcome to the 2022 results call of Polsat Plus Group. As usual, today's presentation will be made by Mr. Mirosław Błaszczyk, CEO, Mr. Maciej Stec, Vice President, Responsible for Strategy, Ms. Katarzyna Ostaptoman, 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 and welcome everyone. This is the agenda of today's meeting. I will begin the presentation with the key highlights of 2022. After that, Staszek will tell you about our performance in the media segment and Maciek will present the operating results of the B2C and B2B segments. Then he will bring you up to date on our activities in the clean energy segment. Kasia will discuss our financial performance in 2022. I will end the presentation with a short summary and our objectives for 2023. Let's start with the key events of 2022. 2022 was a year of many challenges, both globally and locally. A number of factors made business difficult in the past year. War in Ukraine broke out. We all faced the global energy crisis. And Poland saw the highest inflation in over two decades. Despite unfavorable macroeconomic and geopolitical conditions, we continue implementing our strategy 2023 plus in three areas, connectivity, content, and clean energy. In the area of connectivity, we effectively implement our multi-play strategy, which is focused on building value and loyalty of our customers. We already have 2.5 million multiplayer customers. RPU per contract customer increased by 4% last year, while RPU in the prepaid segment grew by 8%. Our chain rate remains very low, just 7%. This reflects the loyalty of our customers. In our second strategic pillar, content, we invest in attractive, high-quality content and sports rights. We are the only operator on the Polish market to offer access to Disney Plus as part of our TV packages. In terms of sports, last year we extended our cooperation in the volleyball world for the next 10 years. We also expand our TV production facilities. In 2022, we built one of the most modern TV studios in Europe in an area of 2,400 square meters and 18 meters of height. This studio offers huge production possibilities. We also consistently strengthen our position in online media by developing our internet portal Interia PL. The last pillar of our strategy 2023 plus is the production of clean energy and green hydrogen. The dynamic development of this new segment is very important to us. We are currently working on the construction of wind farms with total capacity of almost 300 MW. The pace of construction of these farms is truly impressive. We are building the full value chain of green hydrogen economy from green hydrogen production, storage and transport through the construction of a network of hydrogen refueling stations to everyday use such as our hydrogen bus. We are well on the way to completing this chain this year, but I will leave the details to Maciek. Thanks to our initiatives, we are reducing CO2 emissions. In 2022, our scope 1 and 2 carbon footprint was 84% lower year on year. Also, 100% of the energy we use comes from low and zero-emission sources, biomass and solar. I believe that the dynamic implementation of our green projects will enable us to make an even greater contribution to reducing greenhouse gas emissions and improving environmental quality in the future. When discussing the highlights of the past year, it is important to mention the acquisition of a controlling stake in Port Praski, a unique development project in Warsaw. Another step in this area of our business was the conclusion of a joint venture agreement with HB Revis for the construction of office towers in this unique location. In 2022, we paid out 661 million zloty in dividends, that is 1.2 zloty per share. And finally, In January this year, we executed the record-high issuance of sustainability-linked bonds in the amount of 2.67 billion zlotys. I am proud to say that this was the largest corporate bond issue by a private company in the history of the Polish capital market and also the first bond issue in Poland linked to sustainable development goals fully in line with international standards. And now I will give the floor to Staszek, who will present the operating results of the media segment in the fourth quarter and in 2022.

Thank you, Mirek. Good afternoon and welcome. In the online segment, we continue to build our position on the Polish online market very effectively. Through our horizontal portal Interia, which we acquired almost three years ago, we are among the top three players on this market alongside Wirtualna Polska and Rasp Group. In the fourth quarter of last year, we had over 21 million real users and 2 billion page views on average every month. We delivered all the synergies that we announced during the acquisition of Interia in 2020. I am very happy with the evolution of this project over the past years. We will continue to strengthen our position in the market of Internet portals by supporting Interia from the editorial, content, and advertising angles. Let's now look at the performance of our TV channels in the fourth quarter of 2022. The viewership of our TV channels in this period was pretty good considering that we are still under the negative impact of the compulsory switch to the new FTA broadcasting standard. This impact is clearly visible in lower year-on-year viewership figures for both commercial broadcasters, Polsat and Warner Bros Discovery. An additional factor impacting our audience shares in Q4 was UEFA World Cup in Qatar which was broadcasted by the public television in November and December. Total audience shares of TV Polsat channels reached the level of 21.6% in the fourth quarter And this includes 7.8% for our main channel and 13.8% for our thematic channels. Even though viewership figures were under pressure, we did very well on the advertising market. For the fourth quarter of 2022, we posted growing revenue from TV advertising and sponsorship up by 2% year-on-year, while the broad market showed a dynamic of minus 0.3%. As a result, our share in the TV advertising and sponsorship market increased to 28.4%. It's always better to look at the results of our media segment over a longer time horizon because I think it gives a more accurate picture. So let's take a look at our performance in the full year. Of course, the negative impact of the reframing to the DVB-T2 standard is also clearly visible from this perspective. In 2022, our total audience shares were broadly in line with our strategic target, reaching the level of 22.5%. Our main channel, Polsat, was one of the leading channels with an audience share of 7.9%. Our portfolio of thematic channels gained 14.7% of audience shares in 2022. Despite the various headwinds, our performance on the advertising market was very strong in 2022. We increased our revenue from advertising and sponsorship by 1.3% in the full year, while the broad market declined by 1.1%. Our share in the TV advertising and sponsorship market grew to the level of 28.7%. I'm very satisfied with our performance in this area. To end my part of the presentation, I wanted to show you a few pictures of our newest TV studio that we have built. As Mirek mentioned, it's one of the largest and most modern studios in Europe. With 2,400 square meters in area and 18 meters in height, it offers huge possibilities in terms of content production. The photos that you see here were taken during the announcement of this year's spring scheduling and hopefully they give you an idea of how amazing this facility is. To briefly sum up, 2022 brought many challenges with it and I'm very satisfied with the result of the media segment despite all the headwinds. Even though our viewership results were subdued by regulatory decisions, we were still able to deliver very strong results in the advertising market, outperforming broad trends. Actually, our ad market shares are the highest ever. I'm also very happy with the development of our online media product Interia. That's all from me. Thank you for your attention. Now Maciek will present the results of the B2C and B2B services segment.