United Group 29 May 2018

United Group Q1 2018 HIGH YIELD BONDHOLDER REPORT 29 May 2018 Q1 2018 HIGH YIELD REPORT CONTENTS Page Q1 2018 Summary ................................................................................................. 3 Key Operating Measures ........................................................................................ 6 Results of Operations ............................................................................................. 9 Liquidity and Capital Resources ........................................................................... 15 Subsequent (Material Recent) Events .................................................................. 20 Mergers & Acquisitions ........................................................................................ 21 Appendices ........................................................................................................... 26 Appendix 1 - Financial statements ................................................................................................ 26 Appendix 2 - Key Factors Affecting Our Business and Results of Operations ............................ 30 Appendix 3 - Definitions of Key Operating Measures ................................................................. 38 Appendix 4 - Description of Key Line Items ................................................................................ 40 Appendix 5 - Quantitative and Qualitative Disclosures about Market Risk ................................. 42 Appendix 6 – Critical Accounting Policies ................................................................................... 43 Q1 2018 HIGH YIELD REPORT Disclaimer THIS REPORT (THIS “REPORT”) IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY FOR INFORMATION PURPOSES. BY READING THIS REPORT, ATTENDING A PRESENTATION OF THIS REPORT (THE “PRESENTATION”) AND/OR READING THE SLIDES USED FOR THE PRESENTATION (THE “PRESENTATION SLIDES”) YOU AGREE TO BE BOUND AS FOLLOWS: This Report, the Presentation and/or the Presentation slides contains forward-looking statements, which include all statements other than statements of historical facts, including, without limitation, any statements preceded by, followed by or including the words “targets”, “believes”, “expects”, “aims”, “intends”, “may”, “anticipates”, “estimates”, “would”, “will”, “could”, “should” or similar expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond our control that could cause our actual performance or achievements to be materially different from future performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding our present and future strategies and the environment in which we will operate in the future. These forward-looking statements speak only as at the date of this Report. We expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any of such statements are based. This Report contains summary unaudited condensed financial information for Adria Midco B.V. and its subsidiaries for the three months ended March 31, 2018. The statement of financial position for Adria Midco B.V. and its subsidiaries as at 31 March 2018 and as at 31 March 2017, as well as the condensed consolidated interim statements of profit or loss and cash flows for Adria Midco B.V. and its subsidiaries for the three months periods then ended have been prepared in accordance with IFRS, however have not been reviewed by our independent auditors. Certain financial measures and ratios related thereto in this Report, including EBITDA, Adjusted EBITDA, Adjusted EBITDA minus capital expenditure, RGUs and ARPU (collectively, the ‘‘Non-IFRS Measures’’) are not specifically defined under IFRS or any other generally accepted accounting principles. These measures are presented here because we believe that they and similar measures are widely used in our industry as a means of evaluating a company’s operating performance and financing structure. Our management believes this information, along with comparable IFRS measures, is useful to investors because it provides a basis for measuring the operating performance in the periods presented. These measures are used in the internal management of our business, along with the most directly comparable IFRS financial measures, in evaluating the operating performance. These measures may not be comparable to other similarly titled measures of other companies and are not measurements under IFRS or other generally accepted accounting principles, and you should not consider such items as alternatives to net income (loss), operating income or any other performance measures derived in accordance with IFRS, and they may be different from similarly titled measures used by other companies. 2 Q1 2018 HIGH YIELD REPORT Q1 2018 Summary 29 May 2018 – United Group, the leading cable and pay-TV operator in South Eastern Europe, today reports its financial results for Q1 2018. Operational Highlights Homes passed grew by 13% to 1,789 thousand compared to Q1 2017, primarily as a result of network expansion as well as the Ikom and Teleing acquisitions in Serbia and Slovenia, respectively Number of unique cable subscribers increased to 1,144 thousand RGUs1 up by 13% year-on-year to 3,620 thousand, driven by organic growth and acquisitions Blended cable ARPU for Q1 2018 up by 7% year-on-year to €21.7 (Q1 2017: €20.3), driven by migration from lower-priced to higher-priced service packages, growth in subscribers for the multi-play offering, and price increases in Serbia and Slovenia Financial Highlights Consolidated Group revenue for Q1 2018 up 16% year-on-year to €140.5 million (Q1 2017: €121.4 million) Consolidated Group adjusted EBITDA up by 17%2 in Q1 2018 to €62.2 million (Q1 2017: €53.3 million) Net cash outflow of €0.4 million against an inflow of €52.0 million in Q1 2017 Net leverage (ratio of Group Net Debt to Annualised Last Two Quarters Adjusted Pro Forma EBITDA3) as at March 31, 2018 down to 5.15x (5.20x as at December 31, 2017) 1 2017 restated – B2B subscribers reclassified from Other services RGU to Services RGU. This change has an effect on all subscriber, RGU, ARPU and churn data for 2017. All figures for 2017 have been restated in line with the new approach 2 Year-on-year comparison affected by positive effect of acquisitions realized during 2017, as well as changes in FX rates 3 Annualized Adjusted Pro Forma EBITDA is calculated as two times Q4 2017 + Q1 2018 Consolidated Adjusted L2Q EBITDA plus two times €0.2 million of 2 months 2017 Teleing EBITDA (Teleing consolidated in United Group from December 1, 2017) plus €1.0 million of IKOM synergies 3 Q1 2018 HIGH YIELD REPORT The following summary describes the operations in each of our reportable segments or subgroups: SBB Serbia includes the results of cable services in Serbia and direct-to-home (“DTH”) operations in Serbia, Croatia (in 2017) and Macedonia, including the results of EUnet (merged with SBB in February 2017) and Ikom (acquired in April 2017). Absolut Solutions results are also included in the SBB Serbia segment, however their results are not reflected in the statutory consolidated results of the SBB Serbia Group. Results for Q1 2017 include Totalna TV Croatia but during January 2018 Totalna TV Croatia was sold to V-Investment Holdings B.V. Telemach Slovenia includes the results of our cable and mobile services in Slovenia and DTH operations in Slovenia. Telemach BH includes the results of our cable and direct-to-home (“DTH”) services in Bosnia and Herzegovina. Telemach Montenegro includes the results of our cable and DTH services in Montenegro. United Media Group includes the results of our media and content business in the former Yugoslav region including the results of N1, Sport Klub, Grand Production, Orlando Kids and IDJ. Other Businesses includes the results of our other operating businesses (such as NetTV) and our Holding companies. United Group generated consolidated revenues of €140.5 million during Q1 2018. The 16% increase in revenue resulted primarily from organic growth of our subscriber base, migration of subscribers to multi-play packages and the impact of companies acquired in 2017. Adjusted EBITDA generated during Q1 2018 was up 17% to €62.2 million. Summary financials table in € m Q1 2017 Q1 2018 Change Revenue 121.4 140.5 16% Adjusted EBITDA 53.3 62.2 17% Result from operating activities 15.8 30.5 92% Profit before tax (2.5) 13.4 n/a In Q1 2018: SBB generated 36% of consolidated revenues and 46% of consolidated Adjusted EBITDA Telemach Slovenia generated 38% of consolidated revenues and 29% of consolidated Adjusted EBITDA Telemach BiH generated 11% of consolidated revenues and 8% of consolidated Adjusted EBITDA 4 Q1 2018 HIGH YIELD REPORT Telemach MNE generated 2% of consolidated revenues and 1% of consolidated Adjusted EBITDA UM generated 10% of consolidated revenue and 17% of consolidated Adjusted EBITDA Other Businesses generated 3% of consolidated revenue and (1)% of consolidated Adjusted EBITDA Revenue, % of total Adj. EBITDA % of total Q1 2018 in € m net SBB Serbia Segment 50.2 36% 28.6 46% Telemach Slo Segment 53.2 38% 17.7 29% Telemach BH Segment 16.0 11%

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