Cyfrowy Polsat S.A. Ord

Good afternoon, ladies and gentlemen. Welcome to Polsat Plus Group's results call for the first quarter of 2023. Today's speakers are, as always, Mr. Miroslav 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, please post your questions in advance in the chat section. Mr. Błaszczuk, the floor is yours.

Hello, everyone, and welcome. I will start the presentation by discussing the key events of the first quarter of 2023. Staszek and Maciek will follow with the presentation of the operating results in our business segment. And after that, Kasia will discuss our financial performance. After a short summary at the end of the presentation, we will be happy to answer your questions. So let me start with the key highlights in the first quarter. Even though we spoke only a few weeks ago, a few significant events have taken place since our last meeting. First of all, in the first quarter of 2023, we successfully refinanced our existing debt. In the end of April, we signed a senior facilities agreement with a consortium of Polish and foreign financial institutions for term loans of 7.3 billion zlotys and 500 million euro, additionally a revolving facility loan of up to 1 billion zlotys. This new financing will be used, among other things, to fully repay our existing bank debt, which, by the way, took place today. Also in January we issued sustainability link bonds worth 2.67 billion zlotys. This was the largest bond issuance in the history of the Polish capital market. The new financing will support our efforts as we continue to dynamically implement our strategy 2023 plus in the area of green energy. Maciek will no doubt remind you of our ambitious pipeline of renewable energy projects So let me just say that to my great satisfaction, we are very close to completing our first wind farms. Currently, we are running final tests for the launch of electricity production in our very first wind farms in Miłosław and Kazimierz Biskupi. There were also some new developments in the area of connectivity. In the first quarter of 2023, we expanded the coverage of our Plus 5G network. Today, over 20 million people have access to the fastest 5G network in Poland, which is based on 3.5 thousand base stations. Additionally, in March, we modified our telecommunication services tariffs in order to continue building the value of our customer base. Let us now move on to the operation results of our business segment. Staszek, Maciek, Please go ahead.

Thanks Mirek. I will present the results of the media segment TV and online. Starting with the online segment, we continue to build effectively our position in the market of internet portals. As you can see on the graphs, our horizontal portal Interia and its numerous portals are doing very well. Just like in the past quarters, Polsat Interia Group is a strong number 3 player with 21.2 million real users and almost 2 billion page views every month. Like I said, our goal in online media is to strengthen and build our position through Interia PL. We support Interia's performance in day-to-day operations. We cooperate closely in the area of content distribution and editorials. Our ad brokerage house Polsat Media and Interia also work together, and thanks to this cooperation, we see highly satisfactory results in terms of online advertising. Next slide, please. Turning to our TV business, in the first quarter of 2023 we recorded good viewership results of our TV channels. Our main channel was second with an 8% audience share, while our thematic channels gained almost 14% of audience shares. This brings the total viewership of TV Polsat Group channels to 21.9%. Let me remind you that we are still observing the negative impact of the refarming to the new terrestrial television standard, which is preferential towards the public broadcasters. Next slide, please. On this slide, we have our performance on the advertising market in Q1. As you can see, the broad market increased by 4% and our revenue from TV advertising and sponsorship increased in line with this trend. In Q1, we recorded ad revenue of $284 million, which gave us 28.2% market share in the TV advertising and sponsorship market. Overall, I am pleased with the results of the media segment this quarter, especially in terms of the advertising. As you will see in the financial part of this presentation, these operating results were very supportive for the financial performance of the media segment. Now I will give the floor to Maciek for the presentation of the B2C and B2B segment and the clean energy segment. Thank you. Thank you, Staszek.