TVN GROUP RESULTS FOR THE FIRST QUARTER 2015 WARSAW, MAY 5 TH, 2015

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2 TVN GROUP RESULTS FOR THE FIRST QUARTER 2015 WARSAW, MAY 5 TH, 2015

3 Disclaimer This presentation (the Presentation ) has been prepared by TVN S.A. (the Company ) solely for use by its shareholders, clients or analysts and should not be treated as a part of any invitation or offer to sell any securities, invest or deal in or a solicitation of an offer to purchase any securities or recommendation to conclude any transaction, in particular with respect to securities of TVN S.A. The information contained in this Presentation is derived from publicly available sources which Company believes are reliable, but TVN S.A. does not make any representation as to its accuracy or completeness. TVN S.A. shall not be liable for the consequences of any decision made based on information included in this Presentation. The information contained in this Presentation has not been independently verified and is, in any case, subject to changes and modifications. TVN S.A. s disclosure of the data included in this Presentation is not a breach of law for listed companies, in particular for companies listed on the Warsaw Stock Exchange. The information provided herein was included in current or periodic reports published by TVN S.A. or is additional information that is not required to be reported by Company as a public company. In no event may the content of this Presentation be construed as any type of explicit or implicit representation or warranty made by TVN S.A. or, its representatives. Likewise, neither TVN S.A. nor any of its representatives shall be liable in any respect whatsoever (whether in negligence or otherwise) for any loss or damage that may arise from the use of this Presentation or of any information contained herein or otherwise arising in connection with this Presentation. TVN S.A. does not undertake to publish any updates, modifications or revisions of the information, data or statements contained herein should there be any change in the strategy or intentions of TVN S.A., or should facts or events occur that affect TVN S.A. s strategy or intentions, unless such reporting obligations arises under the applicable laws and regulations. This Presentation contains certain market information relating to the television broadcasting sector in Poland, including information on the market share of TVN S.A. and certain of its competitors. Unless attributed exclusively to another source, such market information has been calculated based on data provided by third party sources identified herein and includes estimates, assessments, adjustments and judgments that are based on TVN S.A. s experience and familiarity with the sector in which TVN S.A. operates. Because such market information has been prepared in part based upon estimates, assessments, adjustments and judgments and not verified by an independent third party, such market information is, unless otherwise attributed to a third party source, to a certain degree subjective. While it is believed that such estimates, assessments, adjustments and judgments are reasonable and that the market information prepared is appropriately reflective of the sector and the markets in which TVN S.A. operates, there is no assurance that such estimates, assessments and judgments are the most appropriate for making determinations relating to market information or that market information prepared by other sources will not differ materially from the market information included herein. TVN S.A. hereby informs persons viewing this Presentation that the only source of reliable data describing TVN S.A. s financial results, forecasts, events or indexes are current or periodic reports issued by TVN S.A. in satisfaction of its disclosure obligations under Polish law. 3

4 Agenda 1. Introduction 4. Conclusions 2. Business review 5. Q&A session 3. Financial review 4

5 Introduction Markus Tellenbach - President and CEO 5

6 Advertising revenue and adjusted EBITDA growth thanks to excellent audience results on the opening of spring season Overall revenue increased year-on-year by 3.6% to PLN 363 million in the first quarter reflecting 4.5% improvement in advertising related revenue on the backdrop of strong operating results across all business lines in the quarter and in particular excellent audience results of our main channel on the opening of the spring season in March Adjusted EBITDA was up by 5.3% to PLN 92 million in the first quarter, with revenue growth impact partially offset by cost increase related to the spring season s programming offer Operating leverage reached 37% driving adjusted EBITDA margin above 25% in a predominantly off-season quarter 6

7 Business review Markus Tellenbach - President and CEO 7

8 Strong KPIs delivered across all major business lines The main channel s schedule outperformed competition on the opening of spring season in March reaching average all day audience shares of 14.1% in the commercial target group and 16.3% in the key urban target group TVN thematic channels portfolio increased its audience share* in the first quarter from 8.7% to 9.1% year-on-year driven by further strengthening of content offering and expansion of technical reach Premium TV delivered strong 30% revenue growth and 45% increase in EBITDA on the backdrop of improved pricing and addition of four new channels to the represented portfolio Non-linear content offering delivered 300 million video streams in the first quarter translating into a remarkable 62% year-on-year growth rate * All day viewership among years old. 8

9 TVN main channel s content proposition dominated the audience market on the opening of spring season 16% Spring season Low season Autumn season Low season Spring season 30% pp pp pp 14% 12% 20% 13,1% 12,7% 13,2% 13,4% 19,5% 17,2% 10% 10% 8% 6% 12% 9% Mar'14 Apr'14 May'14 Jun'14 Jul'14 Aug'14 Sep'14 Oct'14 Nov'14 Dec'14 Jan'15 Feb'15 Mar'15 TVN Polsat TVP1 TVP2 0% 30% TVN Polsat TVP1&TVP2 1Q'14 1Q' pp +1.5 pp pp 26,0% 24,0% 24,2% 21,8% 21,8% 22,5% 6% 20% 3% Mar'14 Apr'14 May'14 Jun'14 Jul'14 Aug'14 Sep'14 Oct'14 Nov'14 Dec'14 Jan'15 Feb'15 Mar'15 TVN Thematic Polsat Thematic TVP Thematic 10% TVN Group Polsat Group TVP Group 1Q'14 1Q'15 Source: Nielsen Audience Measurement, March 2014 March 2015, All day, years old. 9

10 Premium TV organic growth and new partners Other Since Jan 2015 No. of channels Audience shares * 1Q % 0.6% 2.0% 1.5% 14.7% 1Q % 0.4% 1.7% 1.5% 15.4% Year-on-year growth pp pp pp 0.0 pp 3 1.2% 1.1% 0.0 pp 8 2.7% 2.3% pp 4 1.1% 1.1% 0.0 pp 4 0.9% 0.7% pp 4 0.9% pp pp Represented audience share increased year-on-year by 0.7 percentage points with acquisition of four additional represented channels: TVS, Romance TV, Power TV and Orange Sport Premium TV service revenue was up by 30% while EBITDA increased by 45% driven by further expansion of represented inventory and improving pricing * All day, years old. 10

11 Further improvement of DTT and Pay TV distribution of our channels Increase in the reach (% of HH) of FTA channels (March 2015, y-o-y) TVN TVN7 TTV TVN 24 BiŚ TVN Meteo TVN Turbo TVN Style TVN % 99% 94% 0% 20% 40% 60% 80% 100% Average increase in subscriber base of 1.4% 8,7 8,9 8,9 8,9 8, pp pp pp + 2.0% + 1.3% + 1.2% + 1.1% + 1.2% 0,0 2,0 4,0 6,0 8,0 10,0 Number of CATV & DTH subscribers in March 2015 in millions % Percentage growth in number of CATV & DTH subscribers in March 2015 (YoY) DTT channels increased their revenue and EBITDA in the first quarter by 1% and 5%, respectively, with moderately negative revenue change and improved EBITDA reported for TVN main channel, whilst TVN7 and TTV posted stronger financial results on the back of higher audience and improving pricing Encrypted Pay TV channels revenue and EBITDA improved in the first quarter by 6% and 9%, respectively, reflecting mainly stronger audience shares, sell-out and pricing for TVN24, TVN Style and TVN Turbo Subscription fees revenue stabilized in the first quarter 11

12 300 million videos from TVN non-linear content offering TVN non-linear video content offering (in millions) + 62% Significant uptake of Registered Users (in millions) 300 Embedded x News % + 140% Short forms 1 Real Users 0 + 7% 1Q Q 2015 Long forms Registered Users 0 Jan'13 Apr'13 Jul'13 Oct'13 Jan'14 Apr'14 Jul'14 Oct'14 Jan'15 TVN non-linear video usage in the first quarter reached 300 million videos and increased by 62% driven by short form and embedded video streams, with average monthly time spent per user reaching 6:45 early in the quarter Online revenue was up by 19% year-on-year in the first quarter Sources: own data and MegaPanel/Gemius. 12

13 Financial review John Driscoll Vice-President and CFO 13

14 TVN Group Financial Highlights Revenue increased year-on-year by 3.6% in the first quarter driven by advertising related revenue growth of 4.5% Operating expenses excluding D&A rose by 3.2% in the first quarter, reflecting mainly investments linked to the spring programming schedule As a result, adjusted EBITDA improved by 5.3% to PLN 92 million in the first quarter Reported EBITDA was 38% lower year-on-year, with an increase to PLN 16 million in share of profit of associates offset by PLN 48 million in incremental one-off costs due to anticipated change of control transaction Financial costs in the first quarter had a positive impact of PLN 47 million with unrealized foreign exchange gains of PLN 91 million significantly offsetting PLN 44 million of interest expense as compared with overall negative net financial result of PLN 76 million in the first quarter of 2014 Consequently, the net result for the first quarter increased significantly to PLN 79 million Stronger adjusted EBITDA combined with positive foreign exchange impact on the value of our debt drove net debt to adjusted EBITDA to 3.7x from 3.9x at the end of

15 Advertising related revenue growth on the backdrop of strong opening of the spring season 1Q 2015 Revenue Bridge % + 12 mn Q'14 Revenue Advertising related Sales of goods Other 1Q'15 Revenue in PLN millions X% change vs. 1Q 2014 Revenue 15

16 Adjusted EBITDA improved despite investments in the spring season with reported result reduced by one-off costs 1Q 2015 EBITDA Bridge % + 5 mn % - 36 mn Change of control transaction costs % 25% 25% 12% 0 1Q'14 Reported EBITDA Share of profit of associates 1Q'14 Adjusted EBITDA Revenue impact Cost impact excl. change of control transaction costs 1Q'15 Adjusted EBITDA Share of profit of associates 1Q'15 Reported EBITDA in PLN millions X% change vs. 1Q 2014 EBITDA EBITDA margin 16

17 Positive finance result reflects impact of stronger PLN vs. EUR combined with lower interest expense PLN millions 1Q Q 2014 Interest income 2 2 Interest expense, of which: interest on the Notes and Loans premium and other costs related to early repayment of the Notes - issuance costs written off on early repayment of the Notes - interest on foreign exchange forward contracts Foreign exchange gains (losses) net, of which: unrealized foreign exchange gains (losses) on the Notes - realized foreign exchange gains (losses) on the Notes - other foreign exchange gains (losses) & fair value hedge impact Other finance expense, net -2-2 Net finance result

18 1Q 2015 Adjusted EBITDA to Net Result Bridge Q'15 Adjusted EBITDA Share of profit of associates Change of control transaction costs 1Q'15 Reported EBITDA Depreciation and amortisation FX gains, net Interest expense, net Earnings before income tax Income tax charge Net result for the period Non-controlling interest Net result to owners of TVN S.A. in PLN millions 18

19 Cash Flow in PLN millions Cash Operating CF CAPEX 2 Tax paid Cash after Interest, net Repayment Other Cash 1 EoY 2014 operations, of cash loan 1 EoP 1Q 2015 capex and taxes 1 Cash and cash equivalents. 2 Payments to acquire plant, property, equipment and intangible assets excl. VAT, net of proceeds from sale of such assets 19

20 Net leverage further reduced to 3.7x PLN millions March 31, 2015 December 31, 2014 Maturity 7.875% Senior Notes % Senior Notes Cash Loan Accrued interest Cash and cash equivalents Net Debt Adjusted EBITDA 2 (12-month rolling) Reported net leverage Gross debt was lower by approx. PLN 160 million year-on-year as a result of deleveraging in 2014 and stronger PLN vs. EUR Combined with higher cash levels this drove net debt further down resulting in net debt to adjusted EBITDA ratio improved to 3.7x from 3.9x at the end of 2014 and from 4.3x a year ago 1 Nominal value. 2 EBITDA excluding impairment, share of profits/ (losses) of associates and one-off transactions but including dividends / distributions received from associates.. 20

21 Update on associates nc+ operating results for the three months ended March 31 st : Post-paid subscriber base amounted to 2.12 million (-3% yoy) Monthly post-paid ARPU averaged PLN 68.2 (+1% yoy) Total revenue was PLN 525 million (-1% yoy) EBITDA was approx. PLN 105 million (stable yoy) TVN reported financial impact of associates for the three months ended March 31 st : Share of nc+ profit was PLN 14.4 million vs. profit of PLN 7.5 million in 1Q 2014 Share of Onet profit was PLN 1.5 million vs. PLN 1.4 million in 1Q

22 Additional disclosures Distributions to shareholders The Management proposes dividend of PLN 102 million or PLN 0.3 per share to be paid from 2014 profits, subject to approval by the Annual General Shareholders Meeting Further distributions to shareholders may be considered by the Management under the existing share buyback authorization, but they would be limited to no more than PLN 150 million and will be subject to any change of control considerations Incremental costs related to the anticipated change of control transaction These costs include PLN 40 million related to Long Term Incentive Plan and PLN 8 million of advisory costs In the event of a change of control transaction closing, further costs will be incurred in a range of PLN million 22

23 Conclusions Markus Tellenbach - President and CEO 23

24 The first quarter results in line with expectations, the full year guidance reconfirmed TVN performance in the first quarter delivered revenue and adjusted EBITDA results matching the expectations The Management upholds full year guidance for mid- to highsingle digit consolidated revenue growth and adjusted EBITDA of approximately PLN 590 million 24

25 THANK YOU