kino polska tv s.a. capital group business and financial ... · fbl app was bundled with premium...

Kino Polska TV S.A. Capital Groupbusiness and financial results

3 Q 2014

DISCLAIMER

This presentation (the „Presentation”) has been prepared by Kino Polska TV S.A. (the „Company„, „KPTV”) and is for informational purposes only. Its purpose is to present se-lected data on Kino Polska TV S.A. Capital Group (the „Group”) and its prospects for development. It may not be regarded as part of an invitation or offer to acquire securities or to make investments. This presentation does not constitute or form part of any offer or invitation to conduct other transactions in securities.

The information contained in this Presentation not arising directly from the periodical reports published by companies belonging to Kino Polska TV S.A. Capital Group has not been independently verified, and therefore there is no guarantee that it is complete and fully reflect the actual state. This Presentation contains statements relating to the future. These statements contain the words such as „anticipate”, „intend”, „estimate”, „be”, „expect”, „assess” and words of similar meaning. All statements, other than these relating to historical facts, contained in this Presentation, including, among others, statements regarding the Group’s financial position, its business strategy, plans and objectives of the management boards for future operations (including development plans and objectives relating to the Group’s products and services) are forward-looking statements. Such forward-looking statements are subject to known and unknown risks, are characterized by inherent uncertainties and are subject to other important factors that could cause those actual results or achievements of the Group’s operations would be materially different from any future results, operations or achievements expres-sed directly or implied in these forward-looking statements. These statements are based on numerous assumptions regarding present and future business strategies of the Group and the environment in which it will be operating in the future. The statements contained herein, have been prepared solely as at the Presentation day. The Company expressly waives any duties or obligations to disseminate any updates or revisions of any statements that are contained herein, designed to reflect changes in the Company’s expectations or changes in events, conditions or circumstances on which any such statement has been based, unless the applicable laws require otherwise. The Company hereby reserves that the forward-looking statements are not guarantees of future performances and that its actual financial position, business strategy, plans and objectives of the management boards for future operations may differ materially from these described or implied in such statements contained in this Presentation. Moreover, even if the financial position, business strategy, plans and objectives of management boards for future operations of the Group are consistent with the forward-looking statements in this Presentation, those results or developments may not provide any indication as to the results or events in subsequent periods.The Company undertakes no obligation to publish any updates, changes or corrections of information, data or statements contained in this Presentation, unless such an obligation is provided by applicable laws.

The Group is not responsible for the results of the decisions which were taken after reading of this Presentation. The only reliable source on the financial results of Kino Polska TV S.A. Capital Group are current and periodic reports, submitted by the companies of Kino Polska TV S.A Capital Group in performing its information obligations arising under relevant Polish laws.

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Much more premium content Best quality – 4k

Additional benefits Available anywhere, any screen

SEGMENT: PREMIUM

GOAL: PRODUCT IMPROVEMENT

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FILMBOX UNIVERSE

Premium package is changing into an all-inclusive

product

ad-free, premium TV

multi-screen and interactive entertainment service

VOD library (more than1000 movies and TV streaming)

Access to much wider content (sport, fashion, music,games and more)

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TOP CONTENTFROM THE TOP PRODUCERS

We have already started rebranding in the Czech Republic and Slovakia.

NEW DEALS FOR TOP CONTENT:

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anywhere,any screenWe are following the newest technology & marketing trends and reaching Internet audience worldwide.

North & South America

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Premium package was launched in Macedonia

FBL app was bundled with Premium Package on Skylink After TV advertising campaign in CZ/SK there are visible positive outcomes New advertising campaign is being launched with UPC (CZ/SK)

Worldwide sale

LOCAL LANGUAGE VERSIONS

The Balkans (changed)

The Russian-speaking markets(upcoming)

Middle East and Africa

NEW SALESPLANSThe Balkans

Brazil(those channels are bundled with premium package where possible)

We have also started negotiationswith platforms / operators in Estonia.

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The newsales- increasing tools

Motivation systems for sales teams

Loyalty system for subscribers

Promotional periods for newcomers

Top content positions advertising campaigns

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SEGMENT:BASIC AND EXTENDED BASIC

MAIN GOAL:Maximization of profit from subscription and advertising by:

Increasing technical coverage Higher financial efficiency

in co-operation with the operators Clear&easy marketing message,

which results in sales growth

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KINO POLSKAKino Polska won the Tytanowe Oko Award for the Best Programming Series

Next year starts massive media campaign, including:

Open air cinema shows

Prestigious events with celebrities of Polish cinema

Competitions for young talents

120th YEARS OF POLISH CINEMAYEAR OF KINO POLSKA BRAND

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2015

KINO POLSKA MUZYKAWe are refreshing our look! Focus on the most popular hits of golden 80’s and 90’s and the hottest artists of today

Switching music videos to 16:9 New, interactive programming solutions

Intensive cross-promotion with radio stations, fan magazines, Internet portals and bloggers

New Programming Director – Rafał Freyer (experienced music director of Radio Zet and Radiostacja) – by programming changes in the daily grid improved ATS ratio to: 15% in October and to 30% in November.

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ATS ratio growth!

FILMBOX (basic) REBRANDING

GOAL:DISTINGUISH FILMBOXAND FILMBOX PREMIUMMisleading these products may have an adverse influence on the sales results. The idea of rebranding has arisen in the course of sales conversations with decision makers representing the main operators.

REBRANDING BENEFITS: Higher lever of financial efficiency

in co-operation with the operators

Clear&easy marketing message, resulting in sales growth

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WORLDWIDESALESLaunched in 19 countrieson 6 platforms this year!

Nigeria West Africa Sub-Region (14 countries) Bulgaria Tanzania Seychelles Ukraine

Both channels are bundled with premium package where possible.

FilmBox Arthouse channel is answering the hot trend of watching valuable cinema. Most of the films belong to the canon of worldwide masterpieces ever.

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Africa and Ukraine:great possibilities Africa pay-TV numbers to double by 2020

68 million TV households in the region by 2020 (20 million from 2013)

Pay-TV subscribers are expected to more than double by 2020 to 25.65 million

Satellite numbers are expected to grow to 14.34 million

Pay TV revenues will reach $5.35 billion in 2020 (up by 69%)

Ukraine is – after Russia - the second largest TV market in the CIS region:

16.2 million television households and 24 million television sets in use

3.2 million pay TV subscribers in Ukraine’s 33 largest cities

With more than 20% penetration, satellite is the leading infrastructure of choice for digital TV reception in Ukraine, with 86 percent of 4.3 million digital households being satellite homes.

AFRICA

UKRAINE

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FILMBOX ARTHOUSEanywhere, any screen Germany and NorwayMAGINE TV platform (cloud-based service for smartphone, tablet, Smart TV or the web)

North & South AmericaApollo TV platform (serves ethnic households and targeted markets)

Other platforms: WorldRelay Tuner for iOS FilmBox Live apps on major Smart TV p latforms, PlayStation and XBOX game consoles

SMART TVWEB15

The Russian-speaking markets:

Middle East and Africa (Arabic):

The Balkans:

New, local languageversions

Upcoming markets

The Balkans:

Brazil:

We have also started negotiationswith platforms / operators in Estonia.

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Why ourB2B sales Goalswere possible to achieve?

We have sales representatives working in 19 countries. 10 times a year they are presenting our offer on worldwide branch events.

Each event means more than 50 personal meetings with decision makers.

During exhibitions, our promotion materials are visible to more than 100 000 professionals.

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SEGMENT: DTT

Stopklatka TV is one of the top 3 movie channels in Poland and the 5th ‘most interesting terrestrial channel in Poland’, right after the Big Four (source: Cyfrowizja, DTT report by the media house MEC).

Content from majors and independents, premiere series (2014’s The Musketeers), original programming Developing HbbTV and second-screen solutions

Synergies with the movie website Stopklatka.pl and the Agora media conglomerate

Crucial milestone: 1% monthly share in the commercial audience (age 16-49)

3Q 2014: 0.9% share in the commercial audience

3Q 2014: 2.23% share in the commercial DTT-only audience

AMRs of top content up to 355,000 (total audience)

Technical reach exceeding 90% of population

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thank you!

SUMMARY OF CONSOLIDATED FINANCIAL RESULTS OF KINO POLSKA TV S.A. CAPITAL GROUP

(9 MONThs ENDED 30.09.2014)

DISCLAIMER

This presentation (the „Presentation”) has been prepared by Kino Polska TV S.A. (the „Company„, „KPTV”) and is for informational purposes only. Its purpose is to present se-lected data on Kino Polska TV S.A. Capital Group (the „Group”) and its prospects for development. It may not be regarded as part of an invitation or offer to acquire securities or to make investments. This presentation does not constitute or form part of any offer or invitation to conduct other transactions in securities.The information contained in this Presentation not arising directly from the periodical reports published by companies belonging to Kino Polska TV S.A. Capital Group has not been independently verified, and therefore there is no guarantee that it is complete and fully reflect the actual state. This Presentation contains statements relating to the future. These statements contain the words such as „anticipate”, „intend”, „estimate”, „be”, „expect”, „assess” and words of similar meaning. All statements, other than these relating to historical facts, contained in this Presentation, including, among others, statements regarding the Group’s financial position, its business strategy, plans and objectives of the management boards for future operations (including development plans and objectives relating to the Group’s products and services) are forward-looking statements. Such forward-looking statements are subject to known and unknown risks, are characterized by inherent uncertainties and are subject to other important factors that could cause those actual results or achievements of the Group’s operations would be materially different from any future results, operations or achievements expres-sed directly or implied in these forward-looking statements. These statements are based on numerous assumptions regarding present and future business strategies of the Group and the environment in which it will be operating in the future. The statements contained herein, have been prepared solely as at the Presentation day. The Company expressly waives any duties or obligations to disseminate any updates or revisions of any statements that are contained herein, designed to reflect changes in the Company’s expectations or changes in events, conditions or circumstances on which any such statement has been based, unless the applicable laws require otherwise. The Company hereby reserves that the forward-looking statements are not guarantees of future performances and that its actual financial position, business strategy, plans and objectives of the management boards for future operations may differ materially from these described or implied in such statements contained in this Presentation. Moreover, even if the financial position, business strategy, plans and objectives of management boards for future operations of the Group are consistent with the forward-looking statements in this Presentation, those results or developments may not provide any indication as to the results or events in subsequent periods.The Company undertakes no obligation to publish any updates, changes or corrections of information, data or statements contained in this Presentation, unless such an obligation is provided by applicable laws.The Group is not responsible for the results of the decisions which were taken after reading of this Presentation. The only reliable source on the financial results of Kino Polska TV S.A. Capital Group are current and periodic reports, submitted by the companies of Kino Polska TV S.A Capital Group in performing its information obligations arising under relevant Polish laws.

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FINANCIAL HIGHLIGHTS

• EBITDA increased by 26% to 26 480k PLN

• TV broadcast revenue increased by 35% to 45 318k PLN

• Advertising revenues increased by 30% to 15 278k PLN

• Closing balance of cash reached 16 774k PLN

• EBITDA forecast for 2014 is 42 million PLN

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EBITDA

+ 26%

21 013

26 480

EBITDA

EBITDA 3 Q 2013 (CUMULATIVELY) EBITDA 3 Q 2014 (CUMULATIVELY)

4

(in thousands PLN)

REVENUE

tv broadcast revenue advertising revenue

+ 35% + 30%

21 247

2 166 2 480

33 736

12 330

9 582 12 798

11 58233 57711 748

15 27845 318

3 Q 2013

KINO POLSKA CHANNELS FILMBOX MOVIE CHANNELS AND THEMATIC CHANNELS

3 Q 20133 Q 2014 3 Q 2014

5(in thousands PLN) (in thousands PLN)

cumulatively cumulatively cumulatively cumulatively

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CASH FLOW HIGHLIGHTS

9 months ended 30.09.2014

9 months ended 30.09.2013

Net cash flows from operating activities 33 682 24 418

Cash flows from investing activities (26 763) (1 278)

Net cash from financing activities (5 117) (13 258)

Cash opening balance 14 956 7 112

Closing balance of cash 16 774 16 998

(in thousands PLN)

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BALANCE SHEET HIGHLIGHTS

as at 30.09.2014 As at 31.12.2013

ASSETS

Non-current assets 89 345 69 154

Current assets, include:-cash and cash equivalents

47 35016 774

62 36214 956

TOTAL ASSETS 136 695 131 516

EQUITY AND LIABILITIES

Total equity 110 296 73 330

Non-current liabilities, include:-borrowings

3 753169

14 001228

Current liabilities, include:-borrowings

22 6462 979

44 1857 042

TOTAL EQUITY AND LIABILITIES 136 695 131 516

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(in thousands PLN)

NUMBER OF ACTIVE SUBSCRIBERS

POLAND ChangesNumber of active subscribers as at

30.09.2014

Number of active subscribers as at

30.09.2013

Kino polska 2% 8 283 8 143

Kino Polska Muzyka

221% 6 162 1 917

filmbox basic 9% 5 331 4 888

Filmbox premium package

14% 1 933 1 696

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(in thousands)


HUNGARY ChangesNumber of active subscribers as at

30.09.2014


30.09.2013

filmbox 2% 1 332 1 304

filmbox plus 91% 63 33

filmbox extra - 34 34

filmbox extra 1* - - 43

filmbox family 2% 45 44

filmbox hd 20% 24 20

fb arthouse 100% 1 -

*FilmBox Extra 1 was rebranded into FilmBox Plus

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(in thousands)


SLOVAKIA ChangesNumber of active subscribers as at

30.09.2014


30.09.2013

filmbox 12% 350 313


filmbox extra 50% 27 18



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(in thousands)


CZECH ChangesNumber of active subscribers as at

30.09.2014


30.09.2013

filmbox 4% 850 890





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(in thousands)


ROMANIA ChangesNumber of active subscribers as at

30.09.2014


30.09.2013

filmbox 15% 954 831

filmbox plus - 70 -




*FilmBox Extra 1 was rebranded into FilmBox Plus

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(in thousands)

Planned MERGER OF „KINO POLSKA TV” S.A.WITH THE SUBSIDIARY – KINO POLSKA PROGRAM TV SP. Z O.O.

On 31 October 2014 a decision was made on a planned merger (the “Merger”) of Kino Polska TV S.A. (the “Acquiring Company”) with its subsidiary - Kino Polska Program TV Spółka z ograniczoną odpowiedzialnością (the “Acquired Company”) formerly known as Kino Polska Program Spółka z ograniczoną odpowiedzialnością S.K.A., jointly referred to as the “Companies”.

The aim of the Merger is to simplify the structures of Kino Polska TV S.A. Capital Group (hereinafter referred to as the “Group”) as part of its business economic operations in Poland and to obtain operational and cost synergies. It is expected that the Merger will bring a number of operational benefits and financial savings, including:

- Strengthening of the market, financial and negotiation position towards suppliers of Kino Polska TV S.A. by creating a unified strong business entity whose principal activity is the broadcast and production of television channel,

- Accumulation of marketing activities in the parent entity of the Group i.e. in Kino Polska TV S.A, as well as the centralization of the functions currently implemented by two separate entities and delivering of a consistent marketing message,

- Ensuring the consolidation of the assets of the merging Companies, including fixed assets, inventories, materials, and expertise (know-how),

- Simplification of the organizational structure and the way of operation of the Group and hence the increase in the efficiency of its operations, simplification of the flow, reduction of the amount of paperwork, the elimination of mutual settlements of the merging Companies,

- Financial savings in the administrative and organizational area, thereby reducing operating costs due to the simplification of the structure of the Group.

The Extraordinary General Shareholders’ Meeting of Kino Polska TV S.A. concerning this Merger was convened on 9 December 2014.

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THANK YOUFOR YOUR ATTENTION

Number of active subscribersas at 30.06.2014 and 30.06.2013

DISCLAIMER

This presentation (the „Presentation”) has been prepared by Kino Polska TV S.A. (the „Company„, „KPTV”) and is for informational purposes only. Its purpose is to present se-lected data on Kino Polska TV S.A. Capital Group (the „Group”) and its prospects for development. It may not be regarded as part of an invitation or offer to acquire securities or to make investments. This presentation does not constitute or form part of any offer or invitation to conduct other transactions in securities.The information contained in this Presentation not arising directly from the periodical reports published by companies belonging to Kino Polska TV S.A. Capital Group has not been independently verified, and therefore there is no guarantee that it is complete and fully reflect the actual state. This Presentation contains statements relating to the future. These statements contain the words such as „anticipate”, „intend”, „estimate”, „be”, „expect”, „assess” and words of similar meaning. All statements, other than these relating to historical facts, contained in this Presentation, including, among others, statements regarding the Group’s financial position, its business strategy, plans and objectives of the management boards for future operations (including development plans and objectives relating to the Group’s products and services) are forward-looking statements. Such forward-looking statements are subject to known and unknown risks, are characterized by inherent uncertainties and are subject to other important factors that could cause those actual results or achievements of the Group’s operations would be materially different from any future results, operations or achievements expres-sed directly or implied in these forward-looking statements. These statements are based on numerous assumptions regarding present and future business strategies of the Group and the environment in which it will be operating in the future. The statements contained herein, have been prepared solely as at the Presentation day. The Company expressly waives any duties or obligations to disseminate any updates or revisions of any statements that are contained herein, designed to reflect changes in the Company’s expectations or changes in events, conditions or circumstances on which any such statement has been based, unless the applicable laws require otherwise. The Company hereby reserves that the forward-looking statements are not guarantees of future performances and that its actual financial position, business strategy, plans and objectives of the management boards for future operations may differ materially from these described or implied in such statements contained in this Presentation. Moreover, even if the financial position, business strategy, plans and objectives of management boards for future operations of the Group are consistent with the forward-looking statements in this Presentation, those results or developments may not provide any indication as to the results or events in subsequent periods.The Company undertakes no obligation to publish any updates, changes or corrections of information, data or statements contained in this Presentation, unless such an obligation is provided by applicable laws.The Group is not responsible for the results of the decisions which were taken after reading of this Presentation. The only reliable source on the financial results of Kino Polska TV S.A. Capital Group are current and periodic reports, submitted by the companies of Kino Polska TV S.A Capital Group in performing its information obligations arising under relevant Polish laws.

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Number of active subscribers

POLAND Changes As at 30.06.2014 As at 30.06.2013

Kino polska 1% 8 215 8 143

Kino Polska Muzyka

211% 5 965 1 917

filmbox basic 6% 5 201 4 888

Filmbox premium package

4% 1 771 1 696

(in thousands)

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HUNGARY Changes As at 30.06.2014 As at 30.06.2013

filmbox 4% 1 322 1 269






fb arthouse 100% 2 -

*FilmBox Extra 1 was rebranded into FilmBox Plus (in thousands)

4


SLOVAKIA Changes As at 30.06.2014 As at 30.06.2013

filmbox 15% 342 297





(in thousands)*FilmBox Extra 1 was rebranded into FilmBox Plus

5


CZECH Changes As at 30.06.2014 As at 30.06.2013

filmbox 3% 870 899





(in thousands)

6


ROMANIA Changes As at 30.06.2014 As at 30.06.2013

filmbox 25% 980 781

filmbox plus - 75 -



filmbox hd - 28 28

*FilmBox Extra 1 was rebranded into FilmBox Plus (in thousands)

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