Letter of Supervisory Board Chairman

Ladies and Gentlemen,

The year 2015 was a challenging time for our Group but simultaneously offered us many reasons for pride and satisfaction.

Most of all, I am glad that the process of consolidation of the Group advanced as planned and in line with our assumptions. The full operational, organizational and structural consolidation of Cyfrowy Polsat and Polkomtel is almost compete thus allowing the Group to focus entirely on the implementation of its strategy and the pursuit of its business goals. The media and telecommunications market continues to evolve and changes dynamically, which makes it one of the most competitive branches of the economy. I am happy that Cyfrowy Polsat Group, the largest media and telecommunications group in Poland, is successful on such a difficult and demanding market.

The Group pursues its business and sales goals in a systematic and effective manner, by developing its unique offer of integrated services – the smartDOM program, which responds to both contemporary trends and market conditions, and most of all to consumers’ expectations. The growing number of customers of the program, as well as of the services they use, is the best proof of the Management Board’s right choice of sales strategy. The results achieved by the program build not only the Company’s value, but also its competitive edge.

Technological progress is an essential element of building one’s position and competitiveness on the media and telecommunications market. For years Polkomtel and Cyfrowy Polsat have been developing their technological edge over their competitors by being actively involved in research and development, thanks to which they have been able to achieve and maintain the position of the LTE technology leader in Poland. Our leadership position is manifested above all by the broadest LTE coverage, the highest data transfer rates in LTE on the Polish market, as well as by the implementation of state-of-the-art technological solutions (such as Wi-Fi Calling), which enhance of the quality of services provided by Polkomtel and Cyfrowy Polsat.

The Group’s advantage is its increasingly extensive portfolio of new services, including financial services (developed in cooperation with Plus Bank), electric energy supply and the recently introduced telemedicine services, as well as potential new services in other areas, which will offer additional benefits, both to residential and corporate customers.

A very important project, completed successfully on January 29 this year, was the process of refinancing of the Group’s existing debt. It will generate interest savings in the amount of ca. PLN 400 million yearly and offer greater flexibility and security of operations, simpler debt structure, as well as good prospects for the Group’s further growth.

I have welcomed with satisfaction last year’s operational and financial results, including the effective accomplishment of the goals in all major segments of operations – on the pay TV, the TV broadcasting and telecommunications markets, as well as in the area of on-line services. It is worth stressing that the Group achieves these very good results in an extremely competitive environment, effectively competing in all major areas of its activities.

I would like to thank the Shareholders, as well as the Subscribers and Customers of Cyfrowy Polsat Group for the trust they have demonstrated. I address special thanks to the Group’s Management and Employees, whose efficient work and commitment have contributed to the accomplishment of goals and fulfilment of tasks. I am convinced that Cyfrowy Polsat Group will continue its efficient operations, which will translate to consistent creation of the Group’s value in a manner offering benefits to its Shareholders.

Yours sincerely,


Zygmunt Solorz-Żak
Chairman of the Supervisory Board
Cyfrowy Polsat S.A.