Sprawozdania Zarządu Z Działalności Grupy Cyfrowy Polsat S.A

Report of Cyfrowy Polsat S.A. Capital Group and Cyfrowy Polsat S.A. on non-financial information for the years 2016-2017 Place and date of publication: Warsaw, March 22, 2018 Place and date of approval: Warsaw, March 21, 2018 We have a pleasure of presenting to you the first Non-Financial Report of Cyfrowy Polsat Capital Group, describing our activities in the years 2016-2017. This publication has been developed according to the Global Reporting Initiative Standards (Core option) and the amended Polish Accounting Act. Our Report covers Cyfrowy Polsat Capital Group, and in particular the data related to the following companies: Cyfrowy Polsat S.A. Polkomtel Sp. z o.o. Telewizja Polsat Sp. z o.o. Report of Cyfrowy Polsat S.A. Capital Group and Cyfrowy Polsat S.A. on non-financial information for the years 2016-2017 prawozdanie Zarządu z działalności Grupy Polsat za rok obrotowy zakończony 31 grudnia 2017 roku TABLE OF CONTENTS Interview with the President of the Management Board ....................................................................................................... 3 1. Our business .................................................................................................................................................................... 6 1.1. Key figures ................................................................................................................................................................ 6 1.2. Sector context and business model of the CP Capital Group | Television, telephony, Internet – fast, everywhere and state-of-the-art .................................................................................................................................................. 6 1.3. What we offer to our customers ................................................................................................................................ 7 1.4. We operate strategically ......................................................................................................................................... 11 1.5. Opportunities and threats........................................................................................................................................ 12 1.6. Always acting responsibly ....................................................................................................................................... 16 2. Care for the needs of our customers and viewers ..................................................................................................... 24 2.1. Exceptional customers ............................................................................................................................................ 24 2.2. Key figures 2017 ..................................................................................................................................................... 25 2.3. Availability – Television and Internet for everyone .................................................................................................. 27 2.4. Safety – DNA of our operations .............................................................................................................................. 30 2.5. High quality products and services ......................................................................................................................... 33 2.6. We set standards .................................................................................................................................................... 35 3. Success thanks to the people ...................................................................................................................................... 41 3.1. Key facts and figures .............................................................................................................................................. 41 3.2. Our culture of work .................................................................................................................................................. 43 3.3. Motivation and development of employees............................................................................................................. 45 3.4. Constantly improving occupational health and safety ............................................................................................. 49 4. Digital Responsibility .................................................................................................................................................... 53 4.1. Technological opportunity ....................................................................................................................................... 53 4.2. Concern for safety ................................................................................................................................................... 54 4.3. Care for children’s health ........................................................................................................................................ 56 4.4. Healthcare and sports thrills ................................................................................................................................... 59 4.5. Help measured by smiles ........................................................................................................................................ 62 5. Environment-friendly Group ......................................................................................................................................... 65 5.1. Key figures .............................................................................................................................................................. 65 5.2. We control our influence on natural environment ................................................................................................... 65 5.3. Waste and recycling ................................................................................................................................................ 66 5.4. Electrical power consumption ................................................................................................................................. 68 5.5. Consumption of raw materials ................................................................................................................................ 69 5.6. Environmental impact of base transceiver stations ................................................................................................. 70 6. Our Management Approach to Communication and Corporate Social Responsibility .......................................... 72 6.1. Key figures .............................................................................................................................................................. 72 6.2. Transparent communications .................................................................................................................................. 72 6.3. Response to the requirements of new regulations.................................................................................................. 74 GRI content index ................................................................................................................................................................... 83 2 Report of Cyfrowy Polsat S.A. Capital Group and Cyfrowy Polsat S.A. on non-financial information for the years 2016-2017 prawozdanie Zarządu z działalności Grupy Polsat za rok obrotowy zakończony 31 grudnia 2017 roku INTERVIEW WITH THE PRESIDENT OF THE MANAGEMENT BOARD [GRI 102-14, GRI 102-15] What distinguishes Polsat Group from others? Polsat Group is a big, thriving organization constantly undertaking new challenges, within which we provide pay TV and telecommunications services as well as deliver a number of additional services – electricity, gas, house monitoring, banking or insurance services and offer a possibility of purchasing telecommunications devices, home electronics and household appliances. We successfully combine these activities, as the access to attractive TV content is extremely important to all our customers, with broadcasting nearly 30 television channels and active presence on the television advertising and sponsoring market. We believe in integration of services which we have incorporated into our development strategy, whereas the scope of our business activities and the nature of our offer make us definitely stand out among the competitors on the market. The smartDOM program offered to our customers communicates in a very comprehensible way that buying services in bundles is not only much simpler, but above all cheaper. Such a structure of the offer is a great opportunity for us, as a Group, to make better use of our resources, capabilities, expertise, sales channels and potential of the team and to acquire new customers whose satisfaction and loyalty are extremely important to us. High quality and universal availability of services, enjoyed on a daily basis by Polish families and companies, is of key importance to us. We have pursued this goal for many years, as a part of television as well as telecommunications activities, and we prove that an equally attractive offer may be used by all Poles, irrespective of their place of residence, social status, profession or interests. How would you define the Corporate Social Responsibility of Polsat Group? Corporate Social Responsibility is inherently connected

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