No.1 Altnet in Poland

Transcription

1 No.1 Altnet in Poland November 29

2 Table of contents Executive summary 3 Attractive market potential 14 Broadband driven growth strategy 26 Cash generative business customer segments 36 Strong asset base & fully funded 4 Financial results and guidance 43 Summary 52 Disclaimer Some of the information included in this material contains forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors. For a more detailed description of these risks and factors, please see Netia's most recent financial report and press release. Netia undertakes no obligation to publicly update or revise any forward-looking statements. 2

3 Executive summary Netia s investment proposition Poland s largest altnet telecom Broadband driven growth strategy Leveraging own network scale Poland s largest altnet telecom operator growing in 9M 29 at 51% yoy1 Growth driven via organic subscriber gross adds and add-on acquisitions Tele2 Polska acquisition completed on September 15, 28 Price: 2.8x expected 28 EBITDA of PLN 4m Integration completed with over PLN 46m annual synergies confirmed Acquisition of 22 local Ethernet networks country-wide in Broadband-driven growth strategy aiming for one million broadband subscribers by FY212 Subscriber base up to 49k in Q3 29 from 6k in Q4 26 Market share up from 1.5% in Q4 26 to 8.5% in Q % of net broadband additions in the Polish market in from Q1 27 to Q % share of regulated broadband access (BSA) among altnets 4% of broadband customers served end-to-end over Netia s own network Netia is guiding for 525k broadband customers by December million voice subscribers at the end of Q3 29 Approximately 4k voice customers served end-to-end over Netia s own network More than 74k voice subscribers served via wholesale agreements with incumbent (WLR) Up-selling broadband to existing clients (focus on 2play) Approximately 5.k km of backbone network and 4.5k km of metropolitan rings underpin all operations Market leader in roll-out of LLU with opportunity to migrate wholesale customers countrywide The Company is guiding for 1,165k voice customers by December 29 Competitive advantages Leveraging competitive advantages of national backbone and residential market know-how Attractive market growth potential and a positive regulatory environment Largest altnet for business customers, strongly cash generative Strong balance sheet and fully funded growth strategy Experienced management team with shareholder value driven compensation plans 1 Revenue from continuing activities 2 Based on Netia s internal estimates of the total fixed broadband market volume as of 28YE and 9M 29 3

4 Executive summary Key financial and operational highlights Dynamically growing business Revenues and EBITDA development PLN m 26A 27A 28A 29E EUR m 29E Revenue ,121 1, Growth (yoy%) -5.2% -2.8% 33.8% 33.4% 33.4% Adjusted EBITDA Margin (%) 25.6% 2.4% 15.3% 2.1% 2.1% EBITDA Margin (%) -8.% 2.4% 15.3% 19.4% 19.4% Investment outlays (excl. M&A) Acquisition outlays nd nd Total capex nd nd Disposal proceeds (P4+IVT assets) na na PLN m % 22.1% 25% 19.% 19.7% 14.2% 14.6% 16.2% 15.6% 2% % ` 1% % % Q1 28 Q2 28 Q3 28 Q4 28 Q1 29 Q2 29 Q3 29 Revenues Adjusted EBITDA Adjusted EBITDA margin % Assets backed with net cash available Broadband and voice subscribers PLN m 26A 27A 28A Sept. 29 EUR m 29E Total assets 2,155 2,71 2, Liabilities Shareholders funds 1,945 1,728 1,928 1, Net cash / (debt) Undrawn loan facilities ,4 1,2 1, Enterprise value 1, Market capitalization (as of Nov. 5, 29) 1, Shares outstanding (m) Backbone networks (km) 5,2 5,2 5,2 5,2 5,2 Metropolitan networks (km) 4,68 4,452 4,452 4,452 Unbundled local loop nodes na na Broadband clients (k) Voice clients (own network, WLR & LLU) (k) ,65 1,147 1,165 ' ,33 1,66 1,15 1, Q1 27 Q2 27 Q3 27 Q4 27 Q1 28 Q2 28 Q3 28 Q4 28 Q1 29 Q2 29 Q3 29 1,147 Broadband subscribers Voice subscribers (ow n netw ork + WLR) Source: Company, PLN/EUR spot rate as of Nov. 5, 29 was EBITDA for 26 adjusted for an impairment charge on non-current assets and a gain on reassessment and cancellation of El-Net's license fee liabilities. EBITDA for 29 adjusted for one-off restructuring expenses related to the cost reduction program (the "Profit" project) and a gain on disposal of P4 transmission assets 4

5 Executive summary Revenue development by customer segments Residential SOHO/SME 1 PLN'm % -1.9% % % 12.7% 12.8% 14.9% % 15% 1% 5% % -5% -1% -15% PLN'm % 35.5% 27.6% 22.4% 23.3% 18.9% 13.9% % 35% 3% 25% 2% 15% 1% 5% % Q1 28 Q2 28 Q3 28 Q4 28 Q1 29 Q2 29 Q3 29 Q1 28 Q2 28 Q3 28 Q4 28 Q1 29 Q2 29 Q3 29 Revenues EBITDA margin % Revenues EBITDA margin % Corporate Carrier PLN'm % 5.2% 49.2% 5.3% 51.1% 45.5% 43.8% % 5% 4% 3% 2% 1% PLN'm % 5.3% 39.9% 45.2% 32.% 31.5% 35.3% % 5% 4% 3% 2% 1% Q1 28 Q2 28 Q3 28 Q4 28 Q1 29 Q2 29 Q3 29 % Q1 28 Q2 28 Q3 28 Q4 28 Q1 29 Q2 29 Q3 29 % Revenues EBITDA margin % Revenues EBITDA margin % 1 SOHO = small office, home office, SME = small and medium enterprises Source: Company internal management reports Note: Customer segment EBITDAs presented above exceed Netia s total reported EBITDA due to certain costs being allocated centrally (please refer to notes to financial statements for more details) Migration of Tele2 Polska customers onto Netia s billing and IT platforms in Q3 29 triggered certain reclassification of select client categories from Home segment to SOHO/SME segment, reflected in results for Q1 Q

6 Executive summary No.1 altnet in broadband services in Poland Broadband services by type of technology as of YE28 Altnets market shares in bitstream (BSA) as of Q3 29 Broadband ports (') % k broadband customers served at September 3, Netia s market share in broadband grew from 2.4% in Q1 27 to 8.5% in Q3 29 Netia s market share in broadband new adds from Q1 27 to Q3 29 was 23% 4% of broadband customers served directly by Netia s own access networks Netia aims at 525k broadband customers through organic growth by the end of 29, excluding potential further Ethernet acquisitions % Target Copper, CATV & LLU Ethernet WiMAX Internet BSA ` 1% 8% 6% 4% 2% % 88% 12% Netia Others Broadband ports as of Q TP Group (retail) Netia Source: Company, public information 6

7 Executive summary No.1 altnet in voice services in Poland Voice customers by type of technology as of YE28 WLR 1 market shares as of Q % 1% 1 8% Voice subscribers (') % % 4% 2% % 62% Netia 38% Others Target Traditional direct voice LLU & VoIP WiMAX voice WLR Total voice subscriber lines as of Q3 29 1,147k voice customers served at September 3, 29 Over 5k customers acquired in 28 through Tele2 Polska transaction 34% of voice customers served directly over Netia s own access network Netia has 62% of WLR customers among altnets Netia aims at 1,165k voice customers (own network + WLR + LLU) through organic growth by the end of 29 Voice market share estimated at 11.2% (') TP Group (retail) Netia Others Source: Company, public information 1 Wholesale line rental 7

8 Executive summary Netia s own network coverage Backbone fiber network of approximately 5,km Metro fiber network of approximately 4,45km Own duct pipe of approximately 3,2km Typical capacity 72j Metropolitan fiber infrastructure in 44 biggest cities of Poland Over 4 C/DWDM sites in all major cities Alcatel based SDH network (15+ SDH sites with STM -16 and STM -64) Two independent networks carrying all packet traffic Carrier Ethernet and Metro Ethernet for L2 services 3 Ethernet nodes with 1Gb uplink 15 Ethernet nodes with 1Gb uplink 55+ ADSL nodes with 1Gb uplink IP core network for other services 15 Core IP nodes with 1Gb uplink 4 POI with International IP Transit Providers 5 Collocation Centers (Tier III class) International point of interconnect in Cieszyn (route to Prague and Frankfurt) One homogenous management system with end-to-end provisioning capabilities Gdynia Słupsk Gdańsk Koszalin Tczew Starogard Gdański Szczecin Elbląg Olsztyn Grudziądz Stargard Sczeciński Piła Bydgoszcz Toruń Gorzów Wielkopolski Włocławek Płock Modlin Poznań Warszawa Konin Kalisz Sieradz Łódź Radom Puławy Kępno Wrocław Lublin Starachowice Brzeg Kielce Ostrowiec Świętokrzyski Opole Zamość Tarnowskie Góry Katowice Rybnik Own LL Cieszyn Tychy Bielsko-Biała Kraków Tarnów Rzeszów LL FO Netia Point of Presence Source: Company 8

9 Executive summary Positive regulatory changes Market status prior to introduction of regulated access in 26 Altnets competed with the incumbent in select country concession areas over their own local networks, target addressable market was limited to their own network coverage (Netia s accessible market was 398k lines), nationwide competition only for call-by-call services Market status post WLR/BSA regulated access introduction in 27 Regulated access over incumbent s network allows altnets to resell voice, broadband services and subscriptions based on wholesale (WLR/BSA) agreements with the incumbent (TP) New regulatory regime allows Netia to reach out to more than 1m residential and business customers connected to TP s local networks Netia s national backbone network & back-office, brand and business processes are now leveraged across the entire addressable market nationwide Market status post LLU regulated access implementation in 27 LLU legislation in place since 23 in Poland, but effective unbundling process possible as of 27, LLU tariffs significantly reduced as of 29 improve attractiveness of LLU customers to altnets Incumbent s network comprises ~5k nodes with average ~2k lines per node (totalling ~1m lines) Netia becomes the only truly successful altnet in Poland with 176 nodes unbundled by the end of Q3 29, targeting 5+ nodes unbundled by 212 year end (each node with average ~1k lines) in total approximating 5% of TP s access lines 26 pre regulatory access Q3 29 with regulatory access Households(14.2m) SOHO/SME (1.2m) Corpo (3k) TP 1.1m Netia 398k Households(14.2m) SOHO/SME (1.2m) Corpo (3k) TP 1 7.2m Netia 74k WLR, 272k BSA, 21.3k LLU Other altnets 457k WLR, 36k BSA Netia 392k + 9k Ethernet Other altnets 1.m Other altnets 1.3m Netia addressable market today is: 8.5m TP lines 392k Netia own lines (55k lines of installed capacity) WiMax national license Ethernet networks acquisitions (34k homes passed to date) 1 TP lines in retail (excluding wholesale to altnets) Source: Company, TP, UKE, press releases 9

10 Executive summary Netia shareholders and share price performance Shareholder structure Share price performance since launch of broadband driven growth strategy (April 27) Third Avenue Management 24.8% 14% 12% 1% Free float 45.64% ING OFE 1.26% 8% 6% 4% 2% Pioneer Pekao 9.99% SISU Capital 1.3% % Apr-7 Jul-7 Oct-7 Jan-8 Apr-8 Jul-8 Oct-8 Jan-9 Apr-9 Jul-9 Oct-9 Netia mwig As of October 14, 29 Shareholder Number of shares (m) % Capital % Votes Third Avenue Management % 24.8% ING OFE % 1.26% SISU Capital % 1.3% Pioneer Pekao % 9.99% Free float % 45.64% Total % 1.% Source: Company On March 6, 29 Novator Telecom Poland II S.a.r.l. placed 3.33% of Netia equity with over 2 Polish investment and pension funds PLN m EUR m Enterprise value (as of Nov. 5, 29) 1, Market capitalisation (as of Nov. 5 29) 1, Debt outstanding (as of Sept. 3, 29) - - Cash (as of Sept 3, 29) Shares outstanding (m) Share price (as of Nov. 5, 29) Daily volume average (shares) (as of Nov. 5, 29 YTD) 684,31 684,31 PLN/EUR spot rate as of Nov. 5, nm Source: Company 1

11 Executive summary Management team Mirosław Godlewski, Chief Executive Officer, 42, joined Netia in February 27. Previously he served as President and CEO in Opoczno SA (26) and Dec Sp. z o.o., a subsidiary of GATX, (23-25). Earlier, he worked at Pepsi-Cola General Bottlers Poland Sp. z o.o. as General Manager (2-23) and Sales Director (1999-2); at PepsiCo Trading Sp. z o.o. ( ) and at Polskie Biuro Badań Marketingowych Sp. z o.o. as Retail Audit Manager ( ). Mr. Godlewski graduated from the Warsaw Technical University with a M. Sc. in Industrial Management. He also holds an MBA from Ashridge Management College, Great Britain. Active member of Young Presidents Organisation. Member of the management board of SEG (the Polish Association of Stock Exchange Issuers), effective March 25, 29. Jon Eastick, Chief Financial Officer, 42, joined Netia s management board in April 26. Previously, he spent five years as Chief Financial Officer of the then leading Polish mobile operator PTC Sp. z o. o. Earlier, he worked at Lucent Technologies Poland SA as Country CFO ( ); at PTK Centertel Sp. z o. o. as Strategy and Financial Planning Manager ( ); and at Arthur Andersen, working in London and later in Warsaw ( ). He graduated from the London School of Economics and is a UK Qualified Chartered Accountant. Grzegorz Esz, Chief Marketing Officer, 37, joined Netia s management board in October 29. Previously he was Vice President of Polskie Przedsiębiorstwo Wydawnictw Kartograficznych SA (PPWK) (27-29). Mr. Esz has rich experience in marketing and sales management developed in leading telecommunications companies such as MTS, the largest mobile operator in Russia (26-27), and Polska Telefonia Cyfrowa Sp. z o.o. (PTC), one of the largest mobile operators in Poland ( ). He graduated with distinctions in Marketing and Management from the Warsaw University of Technology. He also holds an Executive MBA diploma from the London Business School. Piotr Nesterowicz, Business Development and Technology Director, 38, joined Netia in September 28. Previously he was Managing Director of Tele2 Polska Sp. z o.o. (from 24). From 1995 to 24 he worked at McKinsey & Company as a Business Analyst and Associate, an Engagement Manager and an Associate Principal (Junior Partner). At that time, he was consulting to a number of domestic and foreign companies mostly from the telecommunications, power and banking sectors. He started his career in 1994 in Procter & Gamble. Mr. Nesterowicz has a M.A. degree in Management and a Ph.D. degree in Management and Organization from the Academy of Economics, Wrocław, Poland. Tom Ruhan, Chief Legal Officer, 45, was appointed to Netia s management board in April 26. He has been the Chief Legal Officer of Netia since March 23. Prior to his employment with Netia, he worked at Wardyński & Partners for 12 years in various positions, being Of Counsel immediately before moving to Netia. During his 12 years there Mr. Ruhan advised on a number of privatisations including, amongst others, Telekomunikacja Polska SA and also worked on the financial restructuring of Netia. He graduated in law from the University of Warwick, UK. Mr. Ruhan is a member of the Board of Directors of the European Competitive Telecommunications Association (ECTA)( effective January 1, 29. He is also a Deputy Chairman of SOT KIGEiT (Telecommunications Operators Section of the Polish Chamber of Commerce for Electronics and Telecommunications). 11

12 Executive summary High incentive driven remuneration for key managers Participants: Exercise date: until December 2, 212 Maximum number of shares issuable under the SOP: 18,373,785 of which number of shares already issued: 5,54,52 Where options are exercised at a market price above the relevant strike price, the participant receives a number of shares equivalent to the value of the difference. Exercise price (PLN) 1. Strike price: PLN PLN 5.5 PLN 7. PLN 8.25 Other Members of the Management Board 2 1,, 12,2, 9,15, 9,15, 271,814 4,771,814 Employees 3 and former MB members 4,24, 5,184, 4,16, 3, 432,59 14,136,59 Total Total 14,24, 17,384, 13,166, 9,45, 73,873 54,97, % 1.% 2.% 3.% 4.% 5.% 6.% Dilution 1 Strike price is pegged to the market price of Netia shares at the date of entering the scheme, however it cannot be lower than PLN Management Board have discretion to issue up to.6 million of PLN 3.5 options and 3.2 million of other options to senior management Source: Company 12

13 Attractive market potential

14 Attractive market potential Netia operates in fixed line telecom market Netia accounts for approximately 8% of the overall fixed line market value (28YE) Total market value: PLN 14,8bn ,2 4,5 2,5,5 2,2 Share of revenue (%) Other 1 Pro-forma Netia & Tele2 1 Fixed voice (residential) Fixed voice (business) Broadband (residential) Data & Carriers (business) 2 Source: PMR (Oct 28), Audytel, TP, Netia 1 Pro-forma i.e. assuming Netia & Tele2 were one entity during entire 28 2 Includes data transmission and leased lines Broadband (business) 14

15 Attractive market potential Addressing in total 38m population in Poland Fixed voice lines and penetration Residential and business fixed voice lines % 33% 31% 3% 28% 27% 26% 26% 25% 25% 35% 3% 25% 2% % 1% 5% F21F211F212F % F 21F 211F 212F Total lines (millions) Population penetration Consumer Business Fixed broadband customers and penetration 1 Fixed broadband customers by technology % 46.9% 49.1% 5.5% 39.4% % 34.8% % F 21F 211F 212F Residential customers Business customers Household penetration 6% 55% 5% 45% 4% 35% 3% 25% 2% 1% 8% 6% 4% 2% % 1% 2% 7% 33% 27% 24% 2% 14% 24% 42% 24% 26% 28% 3% 49% 5% 5% 5% E 29F 212F xdsl CATV Other2 WiMAX Source: PMR report, October 28 1 Residential and business customer base cumulated 2 Leased lines, ETTH, radio access, satellite, PLC, etc. 15

16 Attractive market potential Low penetration of broadband in Poland Broadband penetration (households) 1 21 BB penetration upside (households) 1,2 81.% 89.% 68.2% 82.% 65.8% 77.% 65.5% 85.% 71.6% 74.% 6.2% 83.% 81.8% 89.% 68.5% 72.% 58.9% 66.8% 56.4% 63.% 57.6% 64.% 5.9% 67.2% 48.5% 6.% 37.3% 52.% 3.9% 18.% 51.9% 34.5% 5.9% 42.% 4.% 59.9% 71.% 5.3% 27.3% 12.% 8.1% 5.7% 7.7% 4.4% 14.7% 14.5% 1.% 7.9% 13.2% 12.6% 7.% 11.8% 8.% 16.3% 1.8% 6.% 1.6% 6.% 7.% 17.2% 2.% 7.7% 7.% 3.% 2.% 3.% 3.% 2.% 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Approx. 66k new households per year available for broadband connection during Denmark Switzerland UK Sweden Norway Finland NL France Belgium Spain Germany Austria Italy Greece Poland Portugal Europe ,57 1,319 1, ,68 3,363 3, , 3, 2, 1, Germany France Spain UK Poland Italy Greece Netherlands Switzerland Belgium Austria Norway Portugal Sweden Denmark Finland BB penetration in 3Q 28A BB incremental penetration (pp) by YE21F Estimated number of households in Poland: PC penetration in 3Q 28A PC incremental penetration (pp) by YE21F 14.2m in m in 21 Source: Merrill Lynch Broadband Matrix except Poland, Netia estimates Note: Western European Countries forecasts for 28E and 21E as of Q3 8 per Merrill Lynch Broadband Matrix Q4 28; Poland forecasts and estimates as of Q3 8 by Netia 1 Excludes ethernet networks 2 Represents households with broadband penetration in 21E minus households with broadband penetration in 28E

17 Attractive market potential Broadband market remains fragmented Broadband subscribers 1,2,3 Growth opportunity for Netia Total market size (subs): ~5.4m Others 7% Ethernet 18% CATV 27% Netia 8% TP Group 4% Broadband penetration of households at 38% including all technologies Netia copper/ fiber network Continue to expand penetration of ADSL to existing 2k residential customer lines and 19k business customer lines TP Regulatory access Bitstream internet access Up-sell voice VoIP and wholesale line rental (WLR) Migrate to LLU Up-sell IPTV and cross-sell mobile services Ethernet networks Bolt-on acquisitions High capacity local networks Up-sell VoIP and upgrade to 2play Integrate Cable TV Netia 3play has an opportunity to compete with multi-play offers 1 As of YE 28 2 Netia estimates that the total number of broadband subs as of September 3, 29 was 5.8m (according to TP data the total was 5.9m) 3 Various sources estimate the size of ETTH market ranging from 7k to 1,k subscribers Source: Netia, PMR, other public information 17

18 Attractive market potential Regulated access drives growth in scale Netia (Poland) Market share development of altnet peers 1, Broadband Subscribers One million 25% Market Shares 8 2% Forthnet 2.% Iliad 18.4% (' ) F 21F 212F 15% 1% 5% % Q Q2 Q4 Q6 Q8 Q1 Netia 8.5% Q12 Q14 Q16 Q18 Fastweb 12.1% Q2 Q22 Q24 Q26 Netia's netw ork LLU/BSA Ethernet netw orks Iliad Fastw eb Netia Forthnet Forthnet (Greece) Iliad (France) Fastweb (Italy) n.a. n.a. n.a. Launched LLU Q4 6.2%.4%.6%.8% 1.2% 1.8% 2.3% 2.8% 4.1% 5.9% 7.7% 9.8% 12.8% 16.2% 19.5% 23.4% 26.3% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % 3, 2,5 2, 1,5 1, 5 1.% 1.4% 1.7% 2.5% 3.2% Launched LLU in % 4.6% 6.9% 8.5% 9.6% 11.5% 15.3% 18.% 2.3% 22.6% 26.8% 3.2% 31.9% 34.4% 38.3% 42.4% 44.9% 47.2% 51.3% 55.3% 57.6% 6.9% 62.% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % 1,6 1,4 1,2 1, % 1.1% 1.5% 2.% 2.4% 2.8% Announcement of LLU strategy January % 5.% 6.3% 8.% 8.9% 11.2% 13.7% 15.8% 17.5% 22.7% 25.3% 26.5% 27.8% 32.% 33.6% 35.5% 36.8% 39.4% 42.3% 44.3% 46.7% 48.% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Year 211 Year 222 Year Year 4 25 Year 5 26 Year 6 Year Year 1 22 Year 2 23 Year 3 24 Year 4 25 Year 5 26 Year 6 27 Year 7 Year 211 Year Year 3 24 Year 4 25 Year 526 Year 6 27 Year 7 Number of Company's Subscribers ( ) BB Penetration of Households (%) Source: Merrill Lynch Research, Informa, Company Financials 1 Nationwide market share. Fastweb Fibre to the home network covered only ca. 4mm homes until nationwide LLU roll out commenced in Jan 5 2 Actuals through 3Q 27, 4Q 27 forecast per Merrill Lynch December 27 Broadband Matrix 3 29 forecast is 525k broadband clients via organic growth only, excluding potential Ethernet networks acquisitions 18

19 Attractive market potential Regulatory conditions in Europe Access speed vs penetration of cable and LLU LLU rates as % of GDP per capita Broadband Access Speed and Penetration of Cable & LLU Full LLU penetration in Europe and relative cost of LLU Average Access Speed % 14% 12% 1% 8% 6% 4% 2% Penetration of Cable & LLU Full LLU penetration 12% 1% 8% 6% 4% 2% Change in Polish LLU price.9%.8%.7%.6%.5%.4%.3%.2%.1% Full LLU price to GDPpC Poland Slovenia Ireland Finland Hungary Italy Greece Czech Denmark Spain Germany Sweden Portugal Belgium UK % % Germany Italy France Finland Greece Denmark Sweden Austria Portugal Netherlands Luxemburg UK Slovenia Spain Belgium Estonia Ireland Hungary Latvia Lithuania Romania Poland Bulgaria.% Linear Weigted average speed Penetration LLU & Cable Liniow y (Penetration LLU & Cable) Full LLU penetration Full LLU price to GDPpC Effectiveness measure of regulatory framework Regulator Actions Score Correlation between Scores for Regulator Actions and Market Conditions Market Conditions Score ECTA Regulatory Scorecard 28 findings Competitive access via LLU and cable supports overall broadband market growth Correlation with total broadband penetration: LLU =.63 Cable =.4 Effective regulation delivers more competitive markets Competitive markets promote investments in infrastructure which subsequently result in higher average access speed and higher penetration of broadband services across country Attractive LLU and WLR/BSA pricing is used by the Regulator to stimulate competitiveness of the market De-monopolization of the access market is key for the competitive investment-driven market play of broadband offers Source: ECTA Regulatory Scorecard 28, European Commission, ING 19

20 Attractive market potential Regulatory conditions in Poland Fixed subscription resale (WLR) cost PLN 2 ( Retail minus formula) Bit stream (BSA) wholesale prices PLN ( Retail minus formula) Full LLU costs (monthly fees) PLN 22 Shared LLU costs (monthly fees) PLN 5.81 Source: Company On December 1, 28, the Polish Regulator introduced a new Reference Unbundling Offer which reduced the fees for LLU monthly access from PLN 36 to PLN 22 (full LLU) and from PLN 13 to PLN 5.81 (shared LLU) 2

21 Attractive market potential Wholesale model works successfully WLR Netia PSTN TP Switch TP DSLAM BSA NETIA IP Network - Internet Access Business Model (2play) TP offers Voice & Internet for ~11 PLN Netia bills voice and Internet for ~ 9 PLN Netia pays 49% of TP retail to TP for Internet and 47% of monthly fee for WLR TOTAL cost ~ 49 PLN Gross margin 45% Netia does not invest in DSLAM Netia can only resell services offered by TP i.e. bandwidths Wholesale Strategy Single play customers represent a base for cross selling Migration of 1play (BSA) customers to higher margin LLU services (shared LLU) began in Q2 29 Migration of 2play customers to full LLU access from November 29 Source: Company 21

22 Attractive market potential LLU model offers broader opportunities Business Model (2play) Netia bills Double Play Revenues at ~ 9 PLN TP Switch TP DSLAM NETIA DSLAM LLU Netia pays TP 22 PLN monthly line rental fee TOTAL cost ~22 PLN Gross margin 75% Netia has to invest in its own DSLAM (~ 2K PLN / node) NETIA controls services delivered over DSLAM LLU roll-out Speeds Value Added Services like IPTV, VOD, PVR Target to unbundle 5.m TP lines with 5 DSLAM in NETIA IP Network - Internet Access - Carrier Class VoIP Attractive operating leverage on unbundling ~1% of incumbent s infrastructure accessed ~5% of the total addressable market 1 Targeting 3 nodes unbundled by 29 year-end 176 nodes unbundled as at September 3, 29 27k LLU clients by November 1, 29 Migration of wholesale customers from Q2 29 (1play) and Q4 29 (2play) Monthly line rental fee for full LLU reduced in December 28 from PLN 36 to PLN 22 Monthly line rental fee for shared LLU reduced in December 28 from PLN 13 to PLN 5.81 (in shared profile the customer keeps TP phone service) One-time LLU installation fee at PLN down from PLN 182 (full LLU) and PLN 24 (shared LLU) 1 Netia targets selectively nodes with 1k+ lines per node (average no. of lines per node in PL is ~2k) Source: Company 22

23 Attractive market potential Consolidation opportunities in Ethernets Business Model Netia Ethernet Switch Fiber or Radio Fiber or Copper Netia controls all elements of access network = no last mile access fees to third parties Average Internet ARPU at ~ 43 PLN Netia IP Router Netia District Ethernet Switch Netia Building Ethernet Switch Potential for ARPU increase when introducing VoIP services Synergies from the acquired Ethernet networks (scale, infrastructure, organization) leading to the improvement of results after acquisition NETIA IP Network - Internet Access - Carrier Class VoIP Fast client service Internet activation and maintenance Gross profit margin of ~ 7% Ethernet Strategy 1play Internet access customers represent base for voice up-selling (convergence to 2play) Organic growth through increased penetration of acquired homes passed (over 34k) Investment dedicated to services upgrade and coverage expansion At present Netia s standard offer over ETTH building s last mile is Internet access of up to 4Mbps & VoIP while technology usually allows access speeds of up to 1 Mb/s within the ETTH access network Provisioning of IPTV and higher speed Internet usually requires an upgrade of capacity between the ETTH access network and Netia s backbone network Target of 2k Ethernet subscribers by 212 (organic and acquisitions) Source: Company 23

24 Attractive market potential Telecom sector traditionally remains solid Time of reduced expenditures % Q Education -5% Clothes Audio-video equipment Telecommunications Food Rent & utility charges As demonstrated in the 9 s in UK, telecom sector remains one of most invulnerable branches against economy downturns % decrease in actual consumers expenses -1% -15% -2% -25% Books Non-alcoholic beverages Hotels Games, toys, hobby Shoes Culture services Health Newspapers Furniture Air travel Non-air travel Alcohol Restaurants Fuel & oil Services, sport & recreation Jewellery, watches Home appliances with high stability of cash inflows driven by monthly fixed fee charges in broadband and voice as well as generated voice traffic. Various surveys conclude that telecom services are least likely to suffer from disposable incomes squeeze in economy contraction -3% Purchase of cars while respondents indicate telecom spending as one of the last home budget items to be crossed out for savings. Expenses: Size: 5 bn GBP annual customers expenses before recession Not flexible Partly flexible Flexible Source: PricewaterhouseCoopers, ONS, McKinsey, Auditel 24

25 Broadband driven strategy

26 Broadband driven strategy Netia is uniquely positioned in Poland Market leader among alternative operators National reach 49k broadband and over 1.1m voice customers makes Netia number 1 among Polish altnets First Mover Advantage in deregulation 88% market share in BSA and 62% in WLR as of Q3 29 First in unbundling the TP local loop (176 nodes with 1.8m lines coverage unbundled at September 3, 29 and 3 nodes and 2.7m lines coverage forecasted for end 29) Brand name established nationally in consumer and business markets National distribution National backbone network provides capacity and backhaul from interconnection points National maintenance and delivery capability through Ericsson outsourcing agreement Existing business supports growth Business partnerships Cash generative corporate business, offering strong margin and some growth opportunities Cost optimization underway Fully funded business plan with substantial headroom on bank facilities Ongoing cooperation with n HDTV platform to deliver 3play in 21 Access to 5 retail Play Germanos stores Netia mobile and convergent products (complementary offering for business clients) launched through cooperation with Play Google hosting Management Highly experienced management team with Polish telecom market know-how Proven M&A and regulatory skills Shareholder value driven compensation plans 26

27 Broadband driven strategy Netia s vision and mission MISSION Preferred choice for broadband services VISION Be the fastest growing communication service provider in Poland by: Satisfying our customers needs for fully featured, high quality broadband services Creating value through dynamic growth of our customer base Providing an inspiring, performance driven and entrepreneurial work environment Achieve balanced growth in broadband customer base to extend #1 position among altnets Grow customer value by increasing penetration of tripleplay, mobile and convergent services Maintain strong and profitable position in Corpo & Carriers segments Drive cost reduction, capex optimization and efficiency improvement 1.m broadband lines by 212 (HOME & SOHO/SME focus) Own network & LLU based access to account for majority of all broadband customers in 212 Voice & BB bundles to become a significant portion of customer base by 212 Up-sell mobile & convergent services to Business customers Launch IPTV in 21 Profitable growth of Corporate with EBITDA margin at satisfactory level Profitable growth of Carriers with EBITDA margin at satisfactory level Achieve significant cost reduction and benefits from economies of scale Optimize capex spend on IT and network infrastructure (legacy network & capacity extensions) Maintain organizational culture to support value growth focused strategy Visible customer centric, performance driven, entrepreneurial and trusting behavior of employees Achieve satisfactory FCF margin by 212 Revenue growth (CAGR) in of 5%-1% for retail market segments and 3%-5% overall Adjusted EBITDA margin at 2% in 29, 23%+ in 21 and 28%+ in 212 CAPEX-to-sales of 15% in 21 27

28 Broadband driven strategy Netia s strategy Increase number of customers 27 Expand distribution and back-office capacity to serve Home market nationally Aggressive acquisition of broadband customers based on geomarketing Leading position in Bitstream Optimization of existing WiMax investments Selective acquisition of high quality Ethernet access networks Up-sell of WLR to Bitstream and CPS customers Broaden portfolio of services 28 Early entry into LLU and quick roll-out in most attractive areas Internet VAS and content to increase ARPU and customer loyalty Mobile and convergent services through partnership with Play Further profitable growth of Corporate and Whosale segments 28

29 Broadband driven strategy Netia s strategy (cont d) Increase customer value to drive profitability 29 Increase coverage of LLU and migrate Bitstream / WLR customers onto LLU Sales focus on cross-selling to multi-play Maintain high EBITDA margin from Corporate & Wholesale Integrate Tele2 Polska and continue acquisitions and integration of local Ethernet networks Execute cost reduction initiatives and increase efficiency with economies of scale Net profits and FCF positive 21 Scalable and de-risked introduction of 3play offer IPTV together with n Continue cost reduction and efficiency improvement Focus on Infrastructure Based Access and 2 or 3 play customers Increase contribution from large broadband base by content & e-commerce services Consider further consolidation of the market and mobile for residential customer base 29

30 Broadband driven strategy Netia builds momentum in broadband Broadband ports Data revenue development CAGR Q1 27 Q2 29 = ~1% 18% ('ooo) Q1 27 Q2 27 Q3 27 Q4 27 Q1 28 Q2 28 Q3 28 Q4 28 Q1 29 Q2 29 Q Target sieć miedziana i TVK sieć Ethernet WiMAX LLU BSA (PLN m) % % 11% 16% 9% 8% 15% % % 13% Q1 27 Q2 27 Q3 27 Q4 27Q1 28 Q2 28 Q3 28Q4 28 Q1 29 Q2 29 Q3 29 Quarterly revenue q-o-q change 16% 14% 12% 1% 8% 6% 4% 2% % Broadband net additions Blended broadband ARPU Organic net adds (k) Organic net adds share 1Q72Q % 1 5% 3Q % 4Q7 1Q8 2Q8 3Q8 4Q8 1Q9 2Q9 3Q % 16% 2% 2% % 18% 15% 39% (PLN) M&A net adds (k) Total net adds share % 15% Total broadband 2.4% 3.% market share 1 28% 3.8% 12 19% 4.5% 4 18% 5.1% 8 26% 5.7% 28 42% 6.6% % 18% 15% 7.6% 7.9% 8.1% - 39% 8.5% 4 2 Q1 7 Q2 7 Q3 7 Q4 7 Q1 8 Q2 8 Q3 8 Q4 8 Q1 9 Q2 9 Q3 9 Source: Netia, TP, Netia historic figures include acquisitions 3

31 Broadband driven strategy Combined with growth in voice via WLR 1 Voice subscribers Voice revenue development ,33 1,65 1,15 1,129 1,147 (') Q1 27 Q2 27 Q3 27 ` Q4 27 Q1 28 Q2 28 Q3 28 Q4 28 Q1 29 Q2 29 Q Target Własna sieć LLU (VoIP) WLR (PLN m) % -3% -1% Tele2 Polska acquisition September 28 4% 2% 21% % -2% % Q1 7 Q2 7 Q3 7 Q4 7 Q1 8 Q2 8 Q3 8 Q4 8 Q1 9 Q2 9 Q3 9 1% 7% 6% 5% 4% 3% 2% 1% % -1% Quarterly revenue q-o-q change Voice net additions Voice ARPU 1 1Q7 2Q7 3Q7 4Q7 1Q8 2Q8 3Q8 4Q8 1Q9 2Q9 3Q9 8 Voice net adds (k) (4) (2) (2) (PLN) 6 4 Total voice market share 3.5% 3.5% 3.6% 3.9% 4.2% 4.5% 9.7% 1.1% 1.6% 11.% 11.2% 2 Q1 7 Q2 7 Q3 7 Q4 7 Q1 8 Q2 8 Q3 8 Q4 8 Q1 9 Q2 9 Q3 9 Blended Direct WLR Source: Netia, TP, Netia historic figures to Q2 28 excludetele2 Polska 1 Wholesale line rental 31

32 Broadband driven strategy Aligned with M&A activity in voice market Netia acquires Tele2 Polska operations in September 28 Transformational change to Netia s market position Attractive acquistion price Netia becomes nearly 3 times larger by revenue than the next largest altnet Over 4% increase in annual revenues with positive incremental EBITDA Significant potential for cross-selling of broadband, VAS, and content EV of PLN 114m 2.8 x Forecast 28 EBITDA of PLN 4m 156 PLN (37 EUR) per customer - comparable to fully loaded subscriber acquisition costs Annual synergies expected to be PLN 46m in 21 (PLNm) Tele2 Polska basic financial highlights 2% 8.2% 15.6% 2.4% 8.% 5.8% %.% 1.2% Q1 27 Q2 27 Q3 27 Revenues Q4 27 Q1 28 Q2 28 Q3 28 EBITDA margin Q4 28 Tele2 Polska basic subscriber data 15% 1% 5% % 28 mln PLN annual network cost savings to be achieved within 12 months (') 6 Major synergies straightforward to deliver 11 mln PLN annual marketing savings as customers moved to the Netia brand (phase out of the Tele2 brand in the first 6-8 months) Improved margins from up to 1% of customers being switched onto Netia s fully-owned infrastructure Economies of scale from combined outsourcing, absorption of personnel, IT and sales cost optimization Q1 27 Q2 27 Q3 27 Q4 27 Q1 28 Q2 28 Q Q4 28 Broadband clients Voice clients (WLR) 1 Tele2 Polska stand alone results for the periods earlier than Q Only WLR lines of Tele2 Polska were taken to calculation 32

33 Broadband driven strategy And active broadband market consolidation Netia consolidates Polish ethernet market via numerous acquisitions Acquisitions completed in Q2 27 Q3 28: Acquisition (town) No. of subs. 1. Lanet (Wrocław) 8, Komnet (Wrocław) 7, Magma (Wrocław) 6, Akron (Wrocław) 1, Netis (Jastrzębie) 4,447 Ethernet game plan: Integrate onto Netia platforms and supply connectivity over Netia core network Up-sell Netia voice and content services Increase penetration of households passed currently 27% of 34k 6. 3VNet (Brzeg) 7. Zielona Burza (Trzebnica) Acquisitions completed in Q4 28: 8. Inet (Brzeg) 1,257 Acquisition (town) No. of subs. 9. Verizone (Wrocław) 1,4 16. Seal-Net (Kluczbork) Ozimek Net (Ozimek) Netster (ŁomŜa) 1, Ikatel (Wrocław) Ticom (Tarnowskie Góry) Interbit (Tczew) 3, Air Bites (14 cities) 24, Punkt (Opole) 4, Easy Com (Góra) 6, Cybertech (Białystok) 3,535 Assets acquisitions 3,2 15. Connect (Białystok) 4,63 Weighted average price/sub PLN 86 36,771 Weighted average price/sub PLN 1,1 47,826 Organic growth 5,886 Total at September 3, 29 9,483 Note: Acquisition price per subscriber in historical transactions depicted above includes net cash of the target as of the acquisition date Note: Acquisition price per subscriber in recent transactions depicted above does not include net cash of the target as of the acquisition date Source: Company 33

34 Broadband driven strategy Cost savings programme underway Comprehensive cost review performed in Q4 28 and Q1 29 Project Profit overview All areas of compressible costs were reviewed: Network operations and IT (internal and outsourced) Customer care Marketing and Sales Support functions Procurement (operating expenses) Detailed project and time-lines prepared, already under implementation as of Q1 29 Estimated savings of PLN 1m on annualized basis with full year impact on Netia s cost base as of 21 and onwards Anticipated savings of around PLN 2m already in 29 Savings from the Profit project to be realized in addition to the previously announced synergies from the Tele2 Polska integration into the Netia group (estimated at PLN 46m per annum) Positive impact on EBITDA margins of +3pp increase as of FY21 reflected in mid term outlook for Netia (please see the following slides) Source: Company 34

35 Cash generative business customer segments

36 Cash generative Business clients are high value Corporate market segment SOHO/SME market segment Carrier market segment PLN 85m+ of revenues quarterly ~31% of Netia revenues in FY28 PLN 37m+ EBITDA quarterly ~6% of Netia EBITDA in FY28 1 Appox. PLN 45m+ of revenues quarterly ~12% of Netia revenues in FY28 PLN 5m+ EBITDA quarterly ~1% of Netia EBITDA in FY28 1 Approx. PLN 45m of revenues quarterly ~19% of Netia revenues in FY28 PLN 16m+ EBITDA quarterly ~27% of Netia EBITDA in FY28 1 Increased focus on high IRR projects Targeting stable revenues Tight cost control and focus on reduction of capex/sales to improve FCF Mobile and convergent offers using Netia service provider OneOffice as primary simplified and standardized offer to SME/SOHO clients Mobile and convergent offers using Netia service provider Leverage expanded reach of regulated access Opportunistic approach to increase utilization of assets and capacity Focus on high EBITDA and low capex projects: Exiting high capex projects like the P4 transmission contract Reducing importance of low margin transit and termination services 1 Cumulated quarterly EBITDA and revenues of presented segments will not add up to total EBITDA and revenues amounts presented in quarterly financial statements per each quarter (please refer to notes to financial statements for more details) 36

37 Cash generative All segments generate cash Home market segment SOHO/SME market segment (mln PLN') (mln PLN') Q1 28 Q2 28 Q3 28 Q4 28 Q1 29 Q2 29 Q3 29 Q1 28 Q2 28 Q3 28 Q4 28 Q1 29 Q2 29 Q3 29 Revenues EBITDA FCF Revenues EBITDA FCF SOHO/SME and Home segments cash flows improving rapidly with scale Corporate market segment Carrier market segment (mln PLN') (mln PLN') Q1 28 Q2 28 Q3 28 Q4 28 Q1 29 Q2 29 Q3 29 Q1 28 Q2 28 Q3 28 Q4 28 Q1 29 Q2 29 Q3 29 Revenues EBITDA FCF Revenues EBITDA FCF Corporate and Carrier segments are strongly cash generative Customer segment EBITDAs presented above exceed Netia s total reported EBITDA due to certain costs being managed centrally (please refer to notes to financial statements for more details). Unallocated capital expenses were managed down from 13% of total capex in Q1 28 to 1% in Q

38 Cash generative Netia is rapidly improving operating FCF EBITDA Capex Operating FCF ,8 (PLN'mln) ,8 57,6 69,9 69,4 82,9 (PLN'mln) ,2 93,9 69,8 51,4 49,1 (PLN'mln) ,4-36,3,1 18, Q3 28 Q4 28 Q1 29 Q2 29 Q3 29 Q3 28 Q4 28 Q1 29 Q2 29 Q Q3 28 Q4 28 Q1 29 Q2 29 Q3 29 Growth in profitability combined with focus on capex budget drive an increase in operating FCF 1 Operating FCF = EBITDA less capex (EBITDA as reported less investments in tangible and intangible fixed assets) 38

39 Strong asset base & fully funded

40 Strong asset base & fully funded Business model is fully funded PLNm Telecom licenses, net WiMax licenses, net P4 investment PP&E, gross PP&E, net Other non-current assets Cash and treasury bonds ,896 1, ,28 1, ,123 1, M ,251 1, Rate of cash burn or return to FCF positive depends on growth decisions Over PLN 196m of deferred tax assets unrecognised Former head office to sell valued between PLN 5m - PLN 7m Other current assets Total assets 2,155 2,71 2,282 2,218 Current liabilities (excl. debt) Debt Other non-current liabilities Shareholders funds 1,945 1,728 1,928 1,921 Debt funding undrawn Source: Company 4

41 Strong asset base & fully funded Netia continues to invest in growth 2% 29% 22% 15% 17% % of revenue (PLN'm) M F Network & IT P4 Broadband and WiMax Capital investment spending overall expected at PLN 25m in 29 despite weaker zloty Higher IT spending in support of new services has resulted in stable overall spending on the existing network and IT Broadband spending reflects the roll-out of LLU and investment in capacity to carry increasing data volumes P4 project roll-out completed in Q2 29 Source: Company 41

42 Financial results & guidance as of September 3, 29

43 Financial results & guidance Key achievements in Q3 and 9M 29 Netia delivers strong EBITDA growth in 9M 29 EBITDA was PLN 222.2m for 9M 29 (+96% y-o-y) and PLN 82.9m for Q3 29 (+82% y-o-y, 19% q-o-q) Adjusted EBITDA 1 was PLN 227.2m for 9M 29 (+11% y-o-y) and PLN 81.9m for Q3 29 (+87% y-o-y, +11% q-o-q) Revenue stabilized in a slowing economy thanks to growth in residential Revenue was PLN 1,119.6m for 9M 29 (+51% y-o-y) and PLN 37.3m for Q3 29 (+37% y-o-y, -1% q-o-q) Residential segment revenue continued to grow thanks to strong net adds and stable ARPUs (+3% q-o-q) Corporate together with SOHO/SME and Wholesale revenues declined sequentially due to pricing pressure and strategic refocus away from low margin/riskier wholesale projects (-1% q-o-q and -16% q-o-q, respectively) Subscribers base growth rebounds despite a challenging market environment 49k broadband services (+41% y-o-y, +7% q-o-q) and over 55k as at November 1, 29 Record fixed broadband net additions share 2 estimated at 39% for Q3 29 1,147k voice services (+11% y-o-y, +2% q-o-q) Netia leads the LLU roll out in Poland 176 nodes unbundled, 21.3k clients as at Sept. 3, 29 and over 27k as at November 1, 29 Migration from BSA (1play) to shared LLU started in Q2 29 Migration from BSA+WLR (2play) to full LLU pushed back to November 29 (pending implementation of new, more cost effective technology solutions) Tele2 Polska integration completed with migration of clients to Netia IT and billing systems Comprehensive cost reduction program Profit proceeds smoothly Sale of the equipment used for providing transmission services to P4 Revised guidance for FY29 and medium term outlook announced on November 5, 29 Revenue from continuing activities 1 EBITDA and net result for 29 excl. one-off restructuring costs related to the Profit project and a gain on sale of the first of three tranches of transmission equipment to P4 2 Excluding CDMA implicit Netia s market share in net adds was 47% 43

44 Financial results & guidance Revenue development by service Revenue breakdown by service Voice revenue breakdown by access (PLN'm) % 5 13% 43 12% % 19 3% % % % 1% 35% (PLN'm) % 24% % 2 1% 17 8% % 16 52% 19 54% 113 8% 56% % % 24 54% 21 54% 22 55% % 79 37% 78 38% 75 37% 73 36% Q3 28 Q4 28 Q1 29 Q2 29 Q3 29 Voice Revenues Data Revenues Other Revenues Q3 28 Q4 28 Q1 29 Q2 29 Q3 29 Ow n netw ork Regulated access Indirect voice and other Data revenue breakdown by access Other revenue (PLN'm) % 9% 12 1% % 26% 7 14% 7 8 8% 26% 26% 15% 16% % 3 28% % 35% 18 37% % 28% 31% 41% % 3 22% 28 26% % 36% 37% 35% 35% 51% % 21 43% % 14 (PLN'm) 17% 47% 35% Q3 28 Q4 28 Q1 29 Q2 29 Q3 29 Ow n netw ork - broadband Regulated access - broadband Ow n netw ork - other data P4 contract Q3 28 Q4 28 Q1 29 Q2 29 Q3 29 Interconnect Wholesale Other Source: Company 44

45 Financial results & guidance Netia s financial performance (PLN ) Q1 Q2 28 Q3 Q4 Q1 29 Q2 Q3 Revenues y-o-y % change 862,57 838,25 1,121, ,47 243, , ,56 (5.8) (2.8%) 33.8% 16.2% 18.4% 31.9% 65.9% 375, % 373, % 37, % Gross profit 232,182 2, ,655 55,676 51,926 73,72 116, , , ,63 EBITDA / Adjusted EBITDA 1 221, ,682 17,641 33,8 35,436 43,829 57,576 71,53 73,752 81,98 Margin y-o-y % change 25.7% (34.7) 2.4% (22.9%) 15.2%.% 14.2% (38.1%) 14.6% (43.1%) 16.2% 21.2% 15.6% 225.7% 19.% 111.6% 19.7% 18.1% 22.1% 86.9% EBIT / Adjusted EBIT 2 (51,181) 2 (13,84) (99,76) (29,79) (33,23) (22,714) (14,683) (3,51) (4,984) 7,6 Share of P4 start-up losses (3,724) (165,237) (22,625) (22,625) Profit on sale of P , ,427 (46) Net profit / (Loss) (378,355) (268,881) 23,65 (55,294) 314,581 (18,586) (1,96) -- (6,41) (8,25) 4,231 Total assets 2,155,359 2,7,651 2,283,479 2,62,256 2,169,214 2,26,24 2,283,479 2,264,686 2,216,531 2,218,287 Net (debt)/cash 4 143,586 (37,3) 192,685 (15,264) 324,17 232, ,685 19, , ,641 Available credit lines 2, 25, 375, 12, 375, 3 375, 3 375, 375, 295, 295, 1 EBITDA for 26 excluding the impact of an impairment charge on non-current assets and cancellation of El-Net s license fee liabilities EBITDA for 29 excluding the one-off expenses related to the cost optimization program (the Profit project) and a gain on sale of the first of three tranches of transmission equipment to P4 2 EBIT for 26 excluding the impact of an impairment charge on non-current assets and cancellation of El-Net s license fee liabilities EBIT for 29 excluding the one-off expenses related to the cost optimization program (the Profit project) and a gain on sale of the first of three tranches of transmission equipment to P4 3 Including PLN 1m available at the Company s option 4 Treasury bonds at market value Source: Company 45