Kino Polska TV S.A. Capital Group business results 2014 DISCLAIMER This presentation (the “Presentation”) has been prepared by Kino Polska TV S.A. (the “Company“, “KPTV”) and is for informational purposes only. Its purpose is to present se- lected data on Kino Polska TV S.A. Capital Group (the “Group”) and its prospects for development. It may not be regarded as part of an invitation or offer to acquire securities or to make investments. This presentation does not constitute or form part of any offer or invitation to conduct other transactions in securities. The information contained in this Presentation not arising directly from the periodical reports published by companies belonging to Kino Polska TV S.A. Capital Group has not been independently verified, and therefore there is no guarantee that it is complete and fully reflect the actual state. This Presentation contains statements relating to the future. These statements contain the words such as “anticipate”, “intend”, “estimate”, “be”, “expect”, “assess” and words of similar meaning. All statements, other than these re- lating to historical facts, contained in this Presentation, including, among others, statements regarding the Group’s financial position, its business strategy, plans and objectives of the management boards for future operations (including development plans and objectives relating to the Group’s products and services) are forward-looking statements. Such forward-looking statements are subject to known and unknown risks, are characterized by inherent uncertainties and are subject to other important factors that could cause those actual results or achievements of the Group’s operations would be materially different from any future results, operations or achievements expressed directly or implied in these forward-looking statements. These statements are based on numerous assumptions regarding present and future business strategies of the Group and the environment in which it will be operating in the future. The statements contained herein, have been prepared solely as at the Presentation day. The Company expressly waives any duties or obligations to disseminate any updates or revisions of any statements that are contained herein, designed to reflect changes in the Company’s expec- tations or changes in events, conditions or circumstances on which any such statement has been based, unless the applicable laws require otherwise. The Company hereby reserves that the forward-looking statements are not guarantees of future performances and that its actual financial position, business strategy, plans and objectives of the management boards for future operations may differ materially from these described or implied in such statements contained in this Presentation. Moreover, even if the financial position, business strategy, plans and objectives of management boards for future operations of the Group are consistent with the forward-looking statements in this Presentation, those results or developments may not provide any indication as to the results or events in subsequent periods. The Company undertakes no obligation to publish any updates, changes or corrections of information, data or statements contained in this Presentation, unless such an obligation is provided by applicable laws. The Group is not responsible for the results of the decisions which were taken after reading of this Presentation. The only reliable source on the financial results of Kino Polska TV S.A. Capital Group are current and periodic reports, submitted by the companies of Kino Polska TV S.A Capital Group in performing its information obligations arising under relevant Polish laws. 2 SEGMENT: PREMIUM 3 FILMBOX UNIVERSE The premium pack has changed into an all-inclusive & mobile product, merging premium TV and a mobile application. FilmBox Universe lets users enjoy the following benefits: • Ad-free, premium TV (5 channels) • Top technology – 4k / Ultra HD, live & interactive games • Access to much wider content (11 channels: sport, fashion, music, games and more) • multi-screen entertainment service • Top technology – 4k / Ultra HD, live & interactive games • VOD library (more than 1000 movies) FilmBox Universe is already available on Vectra, Netia and Toya 4 Future improvement of FilmBox Universe package NEW CONTENT: 4k/Ultra HD movies, documentaries and animation The market is growing! 4K-capable TVs will be in 10% of all North American households by year-end 2018. This number will reach 50% by the end of 2024, just 9 years from now. CRF is a major provider of 4k/Ultra HD, distributed by Kino Polska TV S.A. CRF will serve the channels offered in the FilmBox Universe package: most of the upcoming 4K endeavors, including the production of Ultra HD versions of several all-time movie classics. 5 FilmBox Universe sales support As FilmBox Universe is a pack including the FilmBox Premium channels and the FilmBox Live app, we receive a positive outcome every time FBL provides an advertising campaign. EXEMPLARY CAMPAIGN: FBL LOGO ON 20 000 000 PACKS OF LAY’S CHIPS. 6 TOP CONTENT FROM THE TOP PRODUCERS This year FilmBox Extra changed into FilmBox Premium in Czech Republic, Hungary and Slovakia. Planned change in Poland: September 2015 We signed new deals for TOP CONTENT: 7 PREMIUM CHANNELS GLOBAL EXPANSION • Premium Package was launched in Macedonia and Antenna Hungaria (Hungary) • The FBL app was bundled with the Premium Package on Skylink • The FBL app was launched on the Telenor My TV platform (the Telenor platform in Hungary has already carried the FilmBox brand linear channels since January 2014). NORTH AND SOUTH AMERICA: Kino Polska Muzyka Intl. and Kino Polska Intl. Premium channels are now available anywhere & on any screen – for all subscribers who have internet, smartphone, PC or PS4. THE FUTURE IS WIDE OPEN 2015 started with launching FilmBox HD on Radijus Vektor, one of Serbia’s largest cable operators. FilmBox HD feeds started to be carried on Blizoo, the largest telecommunication operator in Bulgaria. 8 LOCAL LANGUAGE VERSIONS The Balkans (already improved) The Russian-speaking markets (upcoming) The Middle East and Africa (Arabic) (upcoming) We have also started negotiations with platforms / operators in Estonia. 9 In 2014 we implemented new sales-increasing tools for the Premium package. Motivation systems for sales teams Loyalty system for subscribers Promotional periods for newcomers Top content positions for advertising campaigns 10 SEGMENT: BASIC AND EXTENDED BASIC 11 KINO POLSKA WE REACHED A WIDER AUDIENCE: Average Daily Reach of Audience 1,713,310 Monthly Cumulative Reach 10,055,801 Percent of population 28.14% We started organizing a contest, which will be announced this year. The award is a 46m2 apartment in Warsaw, worth PLN 380,000. It will increase the number of viewers and ATS (September – December 2015). Kino Polska International Kino Polska International is the overseas version, programmed especially for Polish-speaking audience outside of Poland. The channel offers something for everyone, including feature films, documentaries and popular TV series. 12 KINO POLSKA MUZYKA • We achieved 5th place on the list of the best music channels in Poland • The daily grid improved ATS ratio to: 47 minutes (which is even more than the market leader’s ATS - PoloTV, which is 42 min.) – 30% growth! • We achieved: Average Daily Reach of Audience 277,134 Monthly Cumulative Reach 2,905,492 Percent of population 8.13% • In order to focus on the most efficient target group (16 – 49) we provided the following changes: • “young” music content structure (now: 2010-2015 - 31.5% 2000-2009 - 19.61% | 1990-1999 - 29.41% 1980-1989 - 14.95% | 1960-1979 - 3.02%) • Switching music videos to 16:9 video aspect ratio • Interactive programming solutions • Presenting the hottest Polish artists of today • Much more fresh look in ads / commercials targeted to 16-49 13 filmbox deals completed in 2014 New FilmBox launches: • Ex Yugoslavia countries / Bulgaria (strategic alliance with Austria Telekom) • Bulgaria (Blizoo) • Hungary (Antenna Hungaria) • Ukraine (5 platforms) • Africa (3 platforms) • Estonia • Romania (DCS Romania) • Poland (T-mobile) Other agreements: • Beginning monetization of DIGI (Czech Republic) • Renewing agreements with key operators: Magyar Telekom, Skylink (Czech Republic) 14 new deals on the horizon • Orange Poland • SBB Serbia • RCS / DIGI Hungary • Bulsatcom in Bulgaria and FilmBox to be launched in Middle East 15 the FUTURE IS WIDE OPEN 2015 STARTED WITH THE FOLLOWING DEALS WORLDWIDE: Balkans FilmBox Arthouse is now available on Radijus Vektor, one of Serbia’s largest cable operators (already available in FilmBox package). Brasil FilmBox Arthouse was approved to launch by the Brazil regulatory body (and is planned to launch in June). This is an extremely attractive market with 30% of homes having pay-TV and 40% of the country paying for cable. Hungary FilmBox Arthouse was launched via the FBL app on MyTv Platform (Telenor) (already available in the “Film” package). Indonesia FilmBox Arthouse was launched on Dens.TV, operated under CBN’s subsidiary Digdaya Duta Digital (VOD already available in every package). Zimbabwe BOStv will deliver FilmBox Arthouse to TV viewers in Zimbabwe in the second quarter of 2015. MYTOTALTV - APP AVAILABLE WORLDWIDE 16 FILMBOX ARTHOUSE anywhere, any screen Germany and Norway MAGINE TV platform (cloud-based service on smartphone, tablet, Smart TV or on the web) North & South America Apollo TV platform (serves ethnic households and targeted markets) Other platforms: • WorldRelay Tuner for iOS • FilmBox Live apps on major Smart TV platforms, PlayStation and XBOX game consoles FilmOn Networks - FilmBox Arthouse channels were added to the renewed agreement with the world’s largest internet TV provider. The channel will be accessible to Filmon.com’s 65 million monthly users around the world. WEB SMART TV 17 Why were our B2B sales Goals possible to achieve? We have sales representatives working in 18 countries. They present our offer10 times a year at worldwide branch events. Each event means more than 50 personal meetings with decision makers. During exhibitions, our promotional materials are visible to more than 100,000 professionals.