Altice N.V. Annual Report 2015 Prins Bernhardplein 200 1097 JB Amsterdam The Netherlands WorldReginfo - 53ce82ba-57bc-4639-816f-b3913f2217e2 Letter from the CEO Dear Shareholders, Altice is starting 2016 with great satisfaction over the achievements of the Group in 2015 and we are looking forward to the completion and integration of many projects and previously announced acquisitions in 2016. 2015 has been a major step forward for our Group and we have been constantly growing. Notably we completed the acquisition of Portugal Telecom; purchased Vivendi’s remaining stake in Numericable-SFR; entered the US market with the acquisition of Suddenlink and an agreement to acquire Cablevision; completed the cross-border merger between Altice N.V. and Altice S.A.; entered into a strategic partnership with NextRadioTV; and made substantial progress in the integration of the acquisitions of Tricom and Altice Hispaniola in the Dominican Republic, SFR in France and Portugal Telecom in Portugal. At the same time, in every country in which we operate, significant projects have been announced to offer our customers the best speed, the best quality, the best networks, the best services and the best content. I would like to recall some of the Groups’ achievements in 2015 without being exhaustive. The acquisition of Portugal Telecom The acquisition of Portugal Telecom was significant for several reasons, including the fact that this is Altice’s first acquisition of an incumbent PTO with a highly diversified revenue base. Being a market leader in fixed, mobile, B2B and B2C in Portugal, we believe we can leverage its state-of-the-art infrastructure with its leading FTTH network, national DTH coverage and leading 4G-LTE coverage. Furthermore, Portugal Telecom is also a highly successful multi-play operator and leader in converged services, with its best-in class highly innovative offering and products. We therefore believe that Altice’s best-in-class expertise can be utilized to drive efficiencies and margin expansion in a market that Altice understands very well. Our first step(s) in the US market The acquisition of Suddenlink which we completed in December 2015 constituted the first major step in our strategy of entering the US market. Suddenlink, the 7th largest US cable operator has 1.5 million residential and 90,000 business customers and has operations primarily located in the states of Texas, West Virginia, Louisiana, Arkansas and Arizona. In 2015, Suddenlink generated EUR 2.2 billion in revenue and over EUR 889 million in Adjusted EBITDA with a balanced revenue mix between residential video, broadband, telephony and business services. With a well invested, leading broadband network across its footprint, Suddenlink has a strong operational and financial growth track record and is the market leader in pay television and broadband in its markets. Suddenlink represents an excellent fit for the Group and will benefit from the operational expertise, scale and investment support that are at the core of the Altice business model. With this acquisition, the Group entered the large and attractive US telecommunications market and takes a further step in diversifying and balancing its portfolio of high-quality businesses. The acquisition was made in partnership with BCP and CPPIB, the previous owners of the business who retained a 30% stake. This acquisition opened an attractive industrial and strategic avenue for Altice in the US. Indeed, on 16 September 2015, we announced our second step into the US, with an agreement to acquire Cablevision, subject to regulatory approval, in partnership with BCP and CPPIB. Cablevision is the leading operator in the New York metropolitan area (New York, New Jersey, Connecticut), which represents the most attractive US cable market characterized by affluence and population density. Cablevision has a DOCSIS 3.0 enabled network passing more than 5 million homes and serves more than 3.1 million residential and business customers. Approximately 64% of its cable/fiber customers subscribe to triple-play services, helping Cablevision generate industry-leading Average Revenue Per Unit (“ARPU”) and high customer loyalty. Cablevision is highly regarded for its customer services with one of the lowest churn rates in the US. The acquisition also includes: Lightpath, the company’s business services unit; News 12 Networks, a local news channel which is the first, largest, and most-watched 24-hour local television news network in the US, delivering local news to more than 3.7 million homes in the New York tri-state area; Newsday Media Group with Newsday, the Pulitzer Prize- winning newspaper distributing over 1.8 million weeklies on Long Island, and New York, the prominent free daily newspaper in the US with a circulation of approximately 319,000 on weekdays (including digital editions); and Cablevision Media Sales, the company’s advertising sales division. 1 WorldReginfo - 53ce82ba-57bc-4639-816f-b3913f2217e2 News, Sports, Series-Movies: our content strategy Altice and NextRadioTV, a French multimedia company, have announced the signing of a strategic partnership to invest in and to accelerate the development of multimedia projects in both France and other international markets. Alain Weill and Altice will be partners in a joint-company dedicated to investments in media companies which will benefit from the TV channels, radio, fixed and mobile digital media NextRadio TV operates in five news areas – general news, sport, economy, high-tech and discovery – which include BFMTV, the leading news channel and also the leading video news brand on the web in France, RMC Découverte, the first free documentaries-only channel in France, RMC, the leading French general radio station for the under 50s, and BFM Business, which is both a radio station and a TV channel, as France’s leading audiovisual financial news media. This partnership also constituted an important step in our media strategy, which is based on the convergence of our telecom assets with media channels, distribution, content development and production. We have also focused on providing premium content to our customers and in 2015 have acquired exclusive rights to premium sports content in several of our markets. In particular, we have entered into a new partnership with the English Premier League, the world’s most prominent football championship. This is another major step for Altice’s investment strategy to provide the best in class television content as part of highly enriched broadband packages to its customers across the world. We have acquired the exclusive football broadcasting rights for the English Premier League in France and Monaco, enabling our fixed and mobile customers in these regions to watch all of the 380 games among England’s top-tier teams live, anywhere, and on any device in 4K resolution. The contract runs for the next three seasons, starting in August 2016. Furthermore we also entered into a long- term partnership with one of Portugal’s leading football clubs, FC Porto. We have obtained the rights to broadcast “Porto Canal” (FC Porto’s own TV channel) from 1 January 2016 onwards for a period of twelve and a half seasons and also became FC Porto’s main sponsor with rights to place advertising on the team shirts for a period of seven and a half seasons. Moreover, from 1 July 2018, we will own TV broadcasting rights for games played by FC Porto in the Portuguese Premier League and be able to use advertising space in the Estádio do Dragão for a period of ten sports seasons. Also, in furtherance of our strategy to focus on sports, we announced an exceptional partnership with Cristiano Ronaldo, three time FIFA World Footballer of the Year and the current Captain of the Portuguese National team, for all of our brands and in all of our countries of operation. Moreover, we have launched a new video-on-demand subscription service “Zive” for SFR customers, with a unique catalogue of HD and 4K/UHD TV content in four categories: Kids, Series, Cinema and Fun, which has been sourced from the world’s major studios and production companies. Zive benefits from Altice’s 20 years of experience in sourcing media content and from the Group’s international footprint and ability to enter into agreements with the largest French and international production companies, extending its catalogue of media partners. We also introduced “Fibre Zive” de SFR, a next-gen set-top box with unique features, including near field communication (“NFC”) and Bluetooth, and innovative services such as “Restart”, “Picture in Picture”, and “Quick’Zap” to enjoy the best TV content and services from the comfort of one’s couch. Fiber investments in France and Portugal With Numericable-SFR and Portugal Telecom being strong players in the markets in which they each operate, we have made extensive plans to accelerate the pace of our fiber build-out in both France and Portugal which will actively contribute to the development and competitiveness of the two countries. This decision further reinforces Altice’s strategic focus on continuing to be the market leader in fiber infrastructure, technology innovation and customer experience. Launch of Altice Labs Altice recently launched “Altice Labs”, an initiative which aims at further streamlining the products and technologies created by the Group entities. We also aim to promote innovation and creativity by seeking partnerships with universities, corporate networks, and start-ups. Having integrated Portugal Telecom’s R&D unit, PT Inovação, with Altice Labs, we aim to open similar facilities in France, the United States, Israel and the Dominican Republic. The cross-border merger On 9 August 2015, we completed the cross-border merger of Altice N.V., as the acquiring company, and Altice S.A. Pursuant to the merger, shareholders of Altice S.A. received 3 Common A Shares with 1 voting right each and a nominal value of one eurocent, and 1 Common B Share with 25 voting rights each and a nominal value of 25 eurocents in Altice N.V., in exchange for each issued and outstanding share in the capital of Altice S.A.