CYFROWY POLSAT SHARES ON THE STOCK EXCHANGE IN 2016

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.

Numerous distinctions presented to Cyfrowy Polsat in the field of investor relations are the confirmation of our efforts which are aimed at guaranteeing high quality and top standards of the Group’s communication with the capital markets in Poland and around the world. Several times in the past years we were ranked at the top spots of the Best Listed Company of the Year ranking organized by Puls Biznesu daily. In 2016 we received an award in the category Best IR Department in a Listed Company in Poland, with the award presented to us during the second edition of the CEE Capital Markets Awards.

In order to ensure current access to information:

• we participate inA conferences with investors;
• we organize numerous individual meetings and roadshows both in Europe and in the United States;
• 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 are open events. In 2016 we attended a total of approximately 300 meetings with representatives of the capital market during 17 conferences and roadshows outside of Poland
• In order to reach a wide audience we also use state-of-the-art tool to communicate with capital market representatives, such as a website dedicated to investors (http://www.grupapolsat.pl/en/investor-relations), a reliable and practical source of information about Polsat Group, 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

When communicating 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.

In connection with implementation of European Parliament’s and Council’s Directive 2014/57/UE of 16 April 2014 - the Market Abuse Directive (MAD), as well as European Parliament’s and Council’s Regulation (EU) no. 596/2014 of 16 April 2014 - the Market Abuse Regulation (MAR), the reporting standards and the information obligations of security issuers have changed fundamentally on the Polish capital market. To ensure proper fulfillment of the information obligations imposed by the relevant regulations, including the MAR Regulation, we have implemented, at the Capital Group level, detailed internal rules which define such things as the principles of analysis and identification of events occurring within our organization, the procedures to be followed upon obtaining any information which is subject to reporting as well as the deadlines for fulfillment of information obligations. We have also adopted the so-called Individual Reporting Standard which supports identification and classification of events as inside information.

Several times in the past years we were ranked at the top spots of the Best Listed Company of the Year ranking organized by Puls Biznesu daily. In 2016 we received an award in the category Best IR Department in a Listed Company in Poland, with the award presented to us during the second edition of the CEE Capital Markets Awards.

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

Cyfrowy Polsat is the largest in terms of market capitalization, that amounted to PLN 15.7 billion as of the end of 2016, media and telecommunications company quoted on the Warsaw Stock Exchange and one of the largest in Middle and Eastern Europe.

[gwtwidget|SeriesFromGrid;1|53|xlsxid=charts;GridId=Capitalization_Tab][gwtwidget|Chart_D;1|50|xlsxid=charts;LabelFormatter=#,##0.0##;Height=400;MarginBottom=80;MarginRight=50;PointWidth=40;Type=COLUMN;LabelEnabled=false;LabelEnabled_Column=true;Colors=#BFBFBF;LastColumnColor=#F7A833]

Recommendations

Brokers covering the Company:

Recommendations for the shares of Cyfrowy Polsat published in 2016

Date	Institution		Recommendation	Target price [PLN]
December 14	Goldman Sachs	-	Neutral	25.20
December 14	DM PKO BP S.A		Buy	27.50
December	Trigon Dom Maklerski S.A.		Buy	28.10
December 4	Dom Maklerski BOŚ S.A	-	Hold	25.10
December 2	Haitong Bank S.A.		Buy	27.10
October 24	Trigon Dom Maklerski S.A.		Buy	29.30
October 20	Raiffeisen CENTROBANK	-	Hold	27.00
October 5	ERSTE Group Research	-	Hold	26.00
October 4	Deutsche Bank Securities S.A.	-	Hold	26.00
September 23	DM PKO BP S.A		Buy	29.00
September 15	Dom Maklerski BDM S.A.		Cumulate	26.36
September 13	DM mBanku S.A.		Reduce	21.80
September 1	Goldman Sachs	-	Neutral	24.30
August 22	IPOPEMA Securities S.A.		Buy	27.40
August 22	Haitong Bank S.A.		Buy	27.00
August 10	Wood&Co		Buy	27.80
July 21.	Dom Maklerski BOŚ S.A	-	Hold	24.40
July 13	Citigroup Global Markets Inc.	-	Neutral	24.80
June 17	Pekao Investment Banking S.A.		Buy	24.00
June 8	DM PKO BP S.A		Buy	26.10
May 11	Berenberg	-	Hold	25.70
May 10	Goldman Sachs	-	Hold	24.00
April.	Patria Finance a.s.	-	Hold	25.30
April 22	Dom Maklerski BZ WBK S.A.		Buy	31.00
April 18	Dom Maklerski BOŚ S.A	-	Hold	25.10
April 8	Trigon Dom Maklerski S.A.		Buy	28.60
March 31	ERSTE Group Research	-	Hold	26.00
March 29	Raiffeisen CENTROBANK		Buy	27.70
March 21	ING Securities S.A.		Buy	27.80
March 17	UBS Investment Bank		Buy	28.00
February 24	Goldman Sachs	-	Neutral	23.40
February 11	Dom Maklerski BDM S.A.		Cumulate	24.65
February 9	IPOPEMA Securities S.A.		Buy	24.00
February 2	DM mBanku S.A.	-	Hold	22.10
January 20	Raiffeisen CENTROBANK		Buy	26.50
January 13	Deutsche Bank Securities S.A.		Buy	26.00

Recommendations released in 2017 after the reporting period

Date	Institution		Recommendation	Target price [PLN]
March 3	ERSTE		Cumulate	26.00
February 17	BZ WBK		Buy	28.50
January 30	Ipopema	-	Hold	25.00
January 27	DM mBanku		Reduce	22.30

[gwtwidget|SeriesFromGrid;2|50|xlsxid=charts;GridId=Recommendations_Tab][gwtwidget|Chart_D;2|50|xlsxid=charts;LabelFormatter=#,##0.0##;Height=400;MarginBottom=80;MarginRight=50;PointWidth=40;Type=COLUMN;LabelEnabled=false;LabelEnabled_Column=true;Colors=#BFBFBF;LastColumnColor=#F7A833]