Letter of the President of the Management Board

Ladies and Gentlemen,

I am writing to you to sum up 2020, a year of extraordinary developments in recent history, and to invite you to have look at Polsat Group’s Annual Report.

The past months and the global pandemic have posed numerous challenges to us that we had to cope with at a social, business and personal level. Care for the health and safety of our employees as well as for efficient communications and reliable information was the priority for Polsat Group from the very onset of the pandemic. In support of these values we undertook immediate efforts to manage the situation efficiently, while acting with utmost care for our team, and to assure continuity and highest standards of our services with our customers in mind.

Wherever possible, in order to protect health and life, we moved thousands of our employees to remote work arrangements, digitizing the work to an even greater degree. As regards the teams whose nature of work required them to work in the office or in the field, we adopted all possible precautionary measures to ensure maximum comfort and safety of their work.

At the same time, together with our team we made enormous efforts so as to support, through a number of aid measures and pro-social activities, the healthcare system, the society, digitally-excluded children as well as senior citizens, to provide our customers with numerous, novel solutions specifically tailored to this extraordinary situation and guaranteeing to all Polish citizens access to reliable information as well as to efficient and dependable communication tools. During this time, Zygmunt Solorz and Polsat Group, in cooperation with Polsat Foundation, donated over PLN 50 million to support the society and the healthcare system. I am particularly proud of these initiatives.

The launch of the first in Poland 5G network, based on spectrum from the 2600 MHz TDD frequency band, was last year’s milestone for our Group. It is an enormous technological leap, offering new possibilities for us, our customers, companies, the economy and our country. At the same time is has been a response to the continuously growing needs of our market associated with the use of networks and data transmission. Reliable and fast Internet access forms the basis of remote work, remote education, running businesses via the Internet or using online entertainment, whose importance increased even more during the past year.

Recently, we announced the intention of entering into a long-term partnership with Cellnex Telecom, a leading telecom operator in Europe, and the plan to sell our telecommunication infrastructure to this operator, which will enable us to develop our 5G network even faster and to ensure top quality services to our customers, in line with our ambitious plans to be the technology leader. We believe that the decision will contribute to a faster roll out of our network for the benefit of our customers and will also have a favorable influence on the condition and the development prospects of the entire sector of mobile telephony in Poland.

2020 was also the year of a strategic investment in the development of our Group on the Internet market, as we acquired Interia.pl Group, one of the biggest players in Poland in the area of online services, both in terms of the number of real users, the number of page views and growth dynamics. The acquisition of Interia.pl Group strengthens our position in the online advertising and e-commerce segments and already enables us to exploit numerous synergies, thus further strengthening our position as the leader on the media and telecommunication markets.

The launch and continuous development of our 5G network, the acquisition of Interia.pl Group, the partnership with Cellnex and heavy involvement in aiding the struggle against the coronavirus are only some examples of the activities that we can boast of when summing up the year 2020 in our Group. It was also a time of development of our multiplay services and of celebrating the 2 millionth customer joining our smartDOM loyalty scheme, as well as the time of further development of TV and telecommunication services, introduction to the market of a nationwide offer of solar power solutions under the Esoleo brand, and the addition of new channels to the portfolio of TV Polsat.

Today our customers all over Poland use 18 million telecommunication and TV services as well as numerous additional services, such as electricity and gas supply, solar power systems or insurance services. Our popular service bundling program called smartDOM enables customers to choose from among the available diverse technology products which are offered in line with our strategic idea: For Everyone. Everywhere. Our Internet access services include fixed-line Internet, also relying on fiber-optic technology, LTE home Internet solution, 5G mobile Internet access. We also offer DTH satellite TV, cable IPTV and OTT web TV, accessible via a set-top box, as well as numerous mobile and fixed-line telephony offers.

Thanks to the enormous commitment and great responsibility of the entire Polsat Group team we can be proud of the results that we achieved in 2020 and the activities we have undertaken. I am grateful and I would like to thank everyone for the effective and wise cooperation within our Group, for being open to new challenges, for the skill to work in a dynamically changing environment as well as for the promising new projects.

The experience of the past year has enabled us to adopt a forward-looking approach and to plan further, consistent development of our Group, pursued in a way that enables us to deliver the latest solutions and top quality services in all available technologies while keeping pace with market trends and specific needs of our customers. What is equally important for us is to ensure a safe, innovative and creative work environment for our employees which will be conducive to their personal development and to the further consolidation of Polsat Group’s position as the market leader.

Yours faithfully,

Mirosław Błaszczyk

President of the Management Board, Cyfrowy Polsat S.A.