Cyfrowy Polsat shares

Shares of Cyfrowy Polsat are listed on the Warsaw Stock Exchange since May 6, 2008.

The table below presents the characteristics of the shares issued as of December 31, 2015:

The current share capital of the Company is PLN 25,581,840.64, divided into 639,546,016 shares. At present, the total number of votes at the General Meeting is 818,963,517.

The shareholding structure as at the date of preparation of this Report together with a description of changes in the structure of ownership of significant number of shares of the Company in the period since the publication of the last periodic report are set forth in detail in item 8.4 –Corporate Governance Statement – Share capital and shareholding structure of Cyfrowy Polsat.

Basic data on the Cyfrowy Polsat shares in trading

Cyfrowy Polsat shares on the stock exchange in 2015

Market capitalization of Cyfrowy Polsat since its debut on the WSE (PLN)

In terms of market capitalization, that amounted to PLN 13.4 billion as of the end of 2015, Cyfrowy Polsat is the largest media and telecommunications company quoted on the Warsaw Stock Exchange and in Central Eastern Europe.

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Recommendations

Brokers covering the Company:

Recommendations for the shares of Cyfrowy Polsat published in 2015

Date	Institution		Target price	Recommendation [PLN]
December 18th	ING Securities S.A.	–	Hold	23.20
December 15th	DM PKO BP S.A		—Buy	26.60
December 15th	Goldman Sachs	–	Neutral	23.60
December 15th	Haitong Bank S.A.		Buy	26.10
December 11th	IPOPEMA Securities S.A.		Buy	27.20
December 3rd	DM mBanku S.A.		Reduce	22.10
November 15th	Deutsche Bank Securities S.A.	–	Hold	27.00
October 27th	Citigroup Global Markets Inc.	–	Neutral	25.80
October 26th	Dom Maklerski BDM S.A.	–	Hold	24.21
October 19th	Dom Maklerski BZ WBK S.A.		Buy	32.00
October 16th	ING Securities S.A.	–	Hold	26.30
October 16th	Trigon Dom Maklerski S.A.		Buy	28.30
September 2nd	Wood&Company		Buy	28.70
August 27th	Goldman Sachs	–	Neutral	24.80
July 22nd	Dom Maklerski BOŚ S.A	–	Hold	25.00
July 21st	Raiffeisen CENTROBANK		Buy	28.50
July	ING Securities S.A.		Buy	27.00
July 15th	Banco Espírito Santo de Investimento, S.A.(1)		Buy	28.00
July 8th	Dom Maklerski BZ WBK S.A.		Buy	31.50
May 25th	DM PKO BP S.A.	–	Hold	27.90
May 7th	ERSTE Group Research		Buy	30.00
April 22nd	Dom Maklerski BZ WBK S.A.		Buy	31.70
April 21st	Goldman Sachs	–	Neutral	26.10
March 26th	Raiffeisen CENTROBANK		Buy	30.00
March 11th	Goldman Sachs	–	Neutral	25.80
March 12th	Trigon Dom Maklerski S.A.		Buy	28.30
March 9th	UBS Investment Bank		Buy	28.00
February 18th	Raiffeisen CENTROBANK		Buy	29.00
February 17th	Goldman Sachs	–	Neutral	27.30
February 11th	Dom Maklerski BZ WBK S.A.		Buy	31.10
February 10th	ERSTE Group Research	–	Hold	26.00
February 2nd	Trigon Dom Maklerski S.A.		Buy	28.80
January 19th	IPOPEMA Securities S.A.		Buy	26.70
January 19th	Dom Maklerski BDM S.A.		Reduce	20.11
January 16th	Deutsche Bank Securities S.A.	–	Hold	26.00

Recommendations released in 2016 until February 26, 2016

Data		Institution				Recommendation	Target price (PLN)
February 11th		Dom Maklerski BDM S.A.				Cumulate	24.65
February 9th		IPOPEMA Securities S.A.				Buy	24.00
February 2nd		DM mBanku S.A.		–		Hold	22.10
January 20th		Raiffeisen CENTROBANK				Buy	26.50
January 13th		Deutsche Bank				Buy	26.00

A list of recommendations issued in 2016 after the reporting period is available on the website.

Recommendations structure as at February 26, 2016

Target price as at February 26, 2016 [PLN] 

• minimum     22.1
• maximum     32.0
• average        26.3

Close dialogue with the capital market

Our corporate strategy aims to create sustainable value of the Company. We support this strategy through regular and open communication with all capital market participants.

In order to ensure current access to information we participate in conferences with investors, we organize numerous individual meetings and roadshows both in Europe and in the United States. Moreover, every quarter, after the publication of financial results, we organize periodical meetings with investors and sell-side analysts as well as teleconferences with the members of the Company’s management. Both events have an open character.

In communication with the capital market we are guided by the main principle of transparency and equal access to information. Following this principle, we introduced the rule of limited communication before the publication of our financial results. Under this rule the representatives of the Company do not discuss or meet with analysts and investors two weeks prior to the publication of the quarterly results. This rule is meant to increase transparency and ensure the equal access to information on the Company before the publication of our financial results.

Moreover, in our communications we use such tools as website dedicated to investors, electronic newsletters, RSS, periodic newsletters including both information on current events in the Company and latest market developments (press review), as well as reminders of the most important events in the Company.

Dividend policy

The Company intends to provide its shareholders with a share in the generated profit through the payment of dividends. When recommending the Company’s profit distribution scenario for a given financial year to which the new dividend policy will apply, the Management Board of the Company shall submit a proposal to the General Meeting for the distribution of dividends representing from 33% to 66% of the standalone net profit of the Company, provided that the total indebtedness ratio of the Company’s capital group, i.e. net debt to EBITDA as at the end of the financial year to which the profit distribution refers is less than 2.5x.

When preparing the recommendation for the distribution of the Company’s profit and the dividend payment, the Management Board will also take into consideration: the amount of standalone net profit achieved by the Company, the financial condition of the Company’s capital group, existing obligations (including any restrictions arising from financing agreements and indebtedness of the Company and other members of its group), the ability to use and manage capital reserves, the Management and Supervisory Boards’ assessment of the prospects of the Company and its capital group in a particular market situation, as well as the need to make expenditures in pursuit of the overriding goal of the Company, that is its continued growth, in particular through acquisitions and engaging in new projects. According to the resolution of the Management Board, the new dividend policy came into effect as of and first apply to the standalone net profit for the financial year ending December 31, 2014.

Acting in accordance with resolution no. 23 of the Ordinary General Meeting, held on April 2, 2015, regarding profit distribution, the Company’s total standalone net profit for the financial year ended December 31, 2014 in the amount of PLN 177.2 million was allocated to the reserve capital.

History of profit sharing

(1) Net profit allocated entirely to reserve capital according to the resolution of the General Meeting on May 19, 2011
(2) Net profit distributed in total to reserve capital and to cover losses from previous years according to the resolution of the General Meeting on June 5, 2012
(3) Net profit distributed in total to reserve capital according to the resolution of the General Meeting on June 11, 2013
(4)  Net profit distributed in total to reserve capital according to the resolution of the General Meeting on April 2, 2015
(5) Net profit distributed in total to reserve capital according to the resolution of the General Meeting on June 29, 2016

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