STRICTLY CONFIDENTIAL Q1 2016 Results PLAY Investor Presentation May 24, 2016
This presentation has been prepared by P4 Sp. z o.o. (“PLAY”) . The information contained in this presentation is for information purposes only. This presentation does not constitute or form part of and should not be construed as an offer to sell or issue or the solicitation of an offer to buy or acquire interests or securities of PLAY or any of its subsidiaries or affiliates in any jurisdiction or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. Certain financial data included in the presentation are “non -IFRS financial measures. ” These non-IFRS financial measures may not be comparable to similarly titled measures presented by other entities, nor should they be construed as an alternative to other financial measures determined in accordance with International Financial Reporting Standards. Although PLAY believes these non-IFRS financial measures provide useful information to users in measuring the financial performance and condition of its business, users are cautioned not to place undue reliance on any non-IFRS financial measures and ratios included in this presentation. Financial data are presented in zloty rounded to the nearest thousand. Therefore, discrepancies in the tables between totals and the sums of the amounts listed may occur due to such rounding. Forward Looking Statements This presentation contains forward looking statements. Examples of these forward looking statements include, but are not limited to statements of plans, objectives or goals and statements of assumptions underlying those statements. Words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “believe”, “continue”, “probability”, “risk” and other similar words are intended to identify forward looking statements but are not the exclusive means of identifying those statements. By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that such predictions, forecasts, projections and other forward looking statements will not be achieved. A number of important factors could cause our actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward looking statements. Past performance of PLAY cannot be relied on as a guide to future performance. Forward looking statements speak only as at the date of this presentation PLAY expressly disclaims any obligations or undertaking to release any update of, or revisions to, any forward looking statements in this presentation. No statement in this presentation is intended to be a profit forecast. As such, undue reliance should not be placed on any 2 forward looking statement.
Agenda Jørgen Business and Strategy Bang-Jensen CEO Robert Bowker Financial Performance CFO 3
Play’s Ultra Growth Play 14.2 14.4 Plus 12.3 T-Mobile 10.7 Orange 8.7 7.1 5.2 3.4 2.0 0.8 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1 2016 5,821 5,363 4,392 3,720 3,579 2,735 Double digit 2,051 number growth almost every year 4 2010 2011 2012 2013 2014 2015 LHA Q1'16
Q1 2016 – Key Highlights Revenue Adjusted EBITDA Adj EBITDA Margin Q1 2016 PLN 1,441m PLN 437m 30.4% Strong Financial Performance +17.4% YoY +35.2% YoY +4.0pp YoY Revenue Adjusted EBITDA Adj EBITDA Margin PLN 5,821m 29.6% PLN 1,724m Q1’16 LHA +19.6% YoY +40.8% YoY +4.5pp YoY Market share Added subs Total subs Continued Commercial Subscriber 1,735k LTM Q1’ 16 14.42m 25.5% base growth -0.4% YoY +13.7% YoY +3.6pp YoY Success Contract Churn Contract share Blended ARPU Quality of Subscribers PLN 36.7 0.7% 50.9% of subs -3.4% YoY 0.0pp YoY +2.6pp YoY 5
Fast growth of customer base and stable ARPU continues to drive revenue and profitability expansion Fast growing subscriber base… …with stable ARPU… Subscriber base (000s) ARPU (PLN / month) 1 Contract 1 YoY growth (%) 26% 17% 16% 14% 51.5 52.2 49.8 50.1 48.8 14,420 12,685 Total subscriber base 1 10,943 9,380 38.0 7,079 35.8 36.7 34.1 34.3 6,554 7,444 6,019 Q1'12 Q1'13 Q1'14 Q1'15 Q1'16 5,245 4,150 Prepaid 1 7,341 Q1'12 Q1'13 Q1'14 Q1'15 Q1'16 6,132 4,924 16.6 16.4 15.1 4,135 14.3 14.4 3,294 Q1'12 Q1'13 Q1'14 Q1'15 Q1'16 Q1'12 Q1'13 Q1'14 Q1'15 Q1'16 Contract Prepaid …continues to drive revenue expansion… …and profitability Adjusted EBITDA 2 (PLNm) Total Revenues (PLNm) 24% 5% 21% 20% 25.2% 29.6% YoY growth (%) 11.9% 15.6% 22.8% 5,576 Adjusted EBITDA 443 4,634 margin 1,724 931 255 3,832 3,660 698 238 284 2,940 1,224 538 857 112 898 924 4,202 587 3,682 3,056 374 2,519 1,904 LTM Q1'12 LTM Q1'13 LTM Q1'14 LTM Q1'15 LTM Q1'16 LHA Q1'12 LHA Q1'13 LHA Q1'14 LHA Q1'15 LHA Q1'16 Usage Interconnection Sales of Goods 6 1 MTR-Adjusted; 2 Adjusted for costs/(income) resulting from valuation of retention programs and certain one-off items, plus a reversal of capitalization, and impairment of SAC assets and SRC assets.
Q1 2016 – Marketing activity THEY EY ALREAD EADY Y KNOW THAT T PLAY ULTR TRA A IS THE BEST T OFFER! FER! NEW W OFFER R : 30 DAYS to to change the tariff 30 DAYS to to change smartphone 30 DAYS to to resig ign IT IS EASY AS A PIE, EVEN N KIDS S GET IT IT 4G LTE ULTR LTRA 4G LTE ULTR LTRA 4G LTE ULTR LTRA Network Contract Handse set coverage ge 7
Q1 2016 – Key Business Developments We have reached 14.42m of subscribers (+13.7% YoY) and 25.5% market share (+3.6pp YoY) as of March 31, 2016 In LTM ended on March 31, 2016, we have added 1,735k subscribers (270k in Q1), of which 1,209k were contract subscribers. The share of contract subscribers at the end of Q1 2016 amounted to 50.9% share of the total subscriber base (+2.6pp YoY) Continued Play maintains its dominant position in Mobile Number Portability. Our share of all numbers moved between MNOs Commercial amounted to approximately 38% in Q1 2016 and in average 42% for the last twelve months Success On March 17, 2016, we introduced a new program „ Fair Play ”, available to all new customers, individual and business. New postpaid customers have first 30 days to change their mind either changing tariff, the handset or resigning from the service At the beginning of November 2015, Play introduced new service – music platform „Tidal” which is free to use for contract subscribers for a period of the contract. We continue Tidal offering in Q1 2016. Usage revenues for the last twelve months ended on 31 March, 2016, amounted to PLN 4,202m, an increase of 14% Strong Financial YoY Performance Usage revenues in Q1 2016 amounted to PLN 1,059m, an increase of 10% YoY Q1 2016 Adjusted EBITDA amounted to PLN 437m, an increase of 35% YoY. On February 5, 2016, we have paid for 1 block of 2x5MHz bandwidth in the 800 MHz frequency band and 4 blocks, each of 2x5MHz bandwidth in the 2600MHz frequency band. The total price paid for the above-listed frequency blocks amounted to PLN 1,718m . The payment was made using cash, available overdraft facilities and a drawdown from the RCF 800/2600MHz On March 8, 2016, we launched the 4G LTE ULTRA (the LTE carrier aggregation) using inter alia a new frequency auction of 800 and 2600 MHz. The refarming of 2100 from 3G to 4G is ongoing. The speed is expected to increase up to 262 Mbits. In the range of 4G LTE ULTRA we achieved the coverage of 40% of population Network roll-out – with more than 400 BTS on LTE 800, Play is again having the fastest roll-out of new frequencies. 8
Continued Leadership in Mobile Number Portability … Total volume of “Port - Ins” under MNP (‘000) and shares by MNOs (%)1 Total volume PLAY is the preferred 1,633 1,604 1,583 (`000) operator among customers migrating their 10% T-Mobile 12% 11% mobile number Orange Continues to outperform 27% Plus 24% 24% competitors in Mobile Number Portability with a Other net gain of 686k in last 8% 12% 15% Play 1% twelve months ended 2% March 31, 2016 7% Shares by Other (7%) represents operator Mobile Virtual Network (%) 56% 50% Operators (MVNO). Vast 42% majority of MNVOs operating on Play’s network generate wholesale revenues. LTM Q1'14 LTM Q1'15 LTM Q1'16 1 Source: multi-operator MNP management platform. 9
Agenda Jørgen Business and Strategy Bang-Jensen CEO Robert Bowker Financial Performance CFO 10
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