Holoceno

In connection with the consolidation of the results of Metelem Holding Company Limited, indirectly controlling Polkomtel, started on May 7, 2014, the Company decided to adjust the method of presentation of certain operational data to the new

structure and the mode of operations of our Group. The new layout of key performance indicators (KPI) relating to our segment of services to individual and business customers, comprising in particular mobile telephony services, Internet access and pay TV are presented below. The Company does not publish separate KPIs regarding its core business operations.

It must be emphasized that the key performance indicators presented below for the 3 and 12-month periods ended December 31, 2013 have been prepared for information purposes only to present the potential effect that the performance of Metelem, and Polkomtel in particular, would have had on the Group’s operating results if Metelem had been part of our Capital Group in the compared periods. These key performance indicators have been prepared for illustrative purposes only and because of their nature they present a hypothetical situation rather than the actual performance of the Group for the given periods.

When assessing our operating results in the segment of services to individual and business customers, we analyze contract services and prepaid services separately. In the case of contract services we consider the number of unique, active services provided in the contract model (RGUs), the number of customers, churn rate and average revenue per customer (ARPU). When analyzing prepaid services we consider the number of unique, active services provided in the prepaid model (prepaid RGUs) as well as average revenue per prepaid RGU. The number of reported RGUs of prepaid services of mobile telephony and Internet access refers to the number of SIM cards which received or answered calls, sent or received SMS/MMS or used data transmission services within the last 90 days.

The table below presents our key performance indicators for the analyzed periods.

for the 3-month period ended December 31 for the 12-month period ended December 31

2014 2013 change / % 2014 2013 change / %

Total number of RGUs

(contract + prepaid) 16,482,031 16,447,334 0.2% 16,482,031 16,447,334 0.2% CONTRACT SERVICES

Total number of RGUs, including: 12,347,828 11,978,807 3.1% 12,347,828 11,978,807 3.1%

Pay TV, including: 4,391,702 4,212,323 4.3% 4,391,702 4,212,323 4.3%

Multiroom 844,809 719,935 17.3% 844,809 719,935 17.3%

Mobile telephony 6,587,915 6,778,675 -2.8% 6,587,915 6,778,675 -2.8%

Internet 1,368,211 987,809 38.5% 1,368,211 987,809 38.5%

Number of customers 6,137,531 6,287,658 -2.4% 6,137,531 6,287,658 -2.4%

ARPU per customer [PLN] 87.2 87.1 0.1% 85.9 88.5 -2.9%

Churn per customer 9.1% 9.2% 9.1% 9.2%

RGU saturation per one customer 2.01 1.91 5.2% 2.01 1.91 5.2%

Average number of RGUs, including: 12,272,311 11,924,710 2.9% 12,091,316 11,857,027 2.0%

Pay TV, including: 4,361,890 4,175,145 4.5% 4,283,695 4,108,908 4.3%

Multiroom 822,568 697,978 17.9% 776,635 623,034 24.7%

Mobile telephony 6,597,742 6,801,845 -3.0% 6,661,539 6,886,650 -3.3%

Internet 1,312,679 947,720 38.5% 1,146,082 861,469 33.0%

Average number of customers 6,159,903 6,279,979 -1.9% 6,219,660 6,301,765 -1.3% PREPAID SERVICES

Total number of RGUs, including: 4,134,203 4,468,527 -7.5% 4,134,203 4,468,527 -7.5%

Pay TV 122,787 77,771 57.9% 122,787 77,771 57.9%

Mobile telephony 3,792,978 4,171,810 -9.1% 3,792,978 4,171,810 -9.1%

Internet 218,438 218,946 -0.2% 218,438 218,946 -0.2%

ARPU per total prepaid RGU [PLN] 18.2 17.5 4.0% 17.7 18.2 -2.7%

Average number of RGUs, including: 4,172,129 4,599,374 -9.3% 4,267,047 4,578,919 -6.8%

Pay TV 129,021 77,953 65.5% 88,894 74,807 18.8%

Mobile telephony 3,798,701 4,338,987 -12.5% 3,939,774 4,384,573 -10.1%

As at December 31, 2014, we provided a total of 16,482,031 active services, both in the contract and prepaid models, which constitutes an increase of 0.2% compared to 16.447.334 active services provided as at December 31, 2013. This change was due to a rapidly growing number of provided Internet access services and a higher number of provided pay TV services (including Multiroom).

As at December 31, 2014, the share of contract services in the total number of provided services was 74.9%. This indicator increased from 72.8% as at December 31, 2013.

Contract services

As at December 31, 2014, we provided contract services to a total of 6,137,531 customers, i.e. by 2.4% less compared to the number of customers, which the Group would have had as at December 31, 2013, if Polkomtel had been part of the Group at the time. The main drivers behind this decrease are the merging of contracts under one common contract for the household and a decrease in the number of customers of mobile voice services.

The number of active contract services provided by us increased by 369,021, that is 3.1%, to 12,347,828 as at December 31, 2014 from 11,978,807 as at December 31, 2013. This change is primarily the effect of an increase of the number of broadband Internet access services by 38.5% due to our strategy of actively promoting sales of services provided in the LTE/HSPA+ technologies, for example by introducing the Internet PowerLTE offer, as well as the dynamically growing number of Internet users in Poland. The total number of pay TV services provided in the contract model increased by 4.3% in the fourth quarter of 2014 to 4,391,702 as at December 31, 2014 from 4,212,323 as at December 31, 2013 due to a significant increase in the number of Multiroom services provided. Concurrently, the number of provided mobile telephony services decreased from 6,778,675 as at December 31, 2013 to 6,587,915 as at December 31, 2014 due to the fact that the Polish mobile telephony market is highly competitive and mature. We believe that further saturation of our customer base with integrated services, including our product smartDOM, will positively influence the growth of the number of contract RGUs provided by us as well as the loyalty of our customers in the future.

In the fourth quarter of 2014 ARPU per customer was equal to PLN 87.2 and remained at a similar level compared to the corresponding period of 2013. We conduct active cross-selling activities to the joined customer bases of Cyfrowy Polsat and Polkomtel within the scope of our integrated offer smartDOM, which has a positive effect on ARPU. From the moment of introducing the offer smartDOM in February 2014 we have observed a successively increasing ARPU from PLN 84.8 at the end of the first quarter of 2014 to the present level of PLN 87.2.

In 2014, ARPU per customer fell by 2.9% to PLN 85.9 compared to PLN 88.5 in 2013. This decrease was triggered primarily by lower interconnect revenue related to the regulatory reduction of MTR rates on voice services by 48.1% from PLN 0.0826 in the first half of 2013 to PLN 0.0429 in the first half of 2014 as well as lower prices on the mobile telephony market due to price pressure from our main competitors.

Thanks to our efficient customer retention programs, our churn rate was equal to 9.1% in the twelve-month period ended December 31, 2014 compared to 9.2% in the twelve-month period ended December 31, 2013.

As at December 31, 2014, each customer from our customer base had 2.01 active contract services, which constitutes an increase of 5.2% compared to 1.91 active contract services per customer as at December 31, 2013. The increase in RGU saturation per one customer is the result of our marketing and sales activities aimed at maximizing the sale of products and services to one customer.

Our product smartDOM has excellent sales results and has a positive effect on both the level of RGU saturation per one customer and ARPU per contract customer. Since its launch in mid-February 2014 until the end of 2014 569 thousand customers joined the program and bought a total of over 1.75 million RGUs. In the fourth quarter of 2014 the number of RGUs provided within the smartDOM program increased by ca. 394 thousand. RGU saturation per one customer in this group was 3.1 as at December 31, 2014. Bearing in mind the long-term goal of our Group, which is to maximize revenue per contract customer through sales of additional products and services, the smartDOM program is perfectly in line with the implementation of our strategy.

Prepaid services

The number of prepaid services provided by us as at December 31, 2014 decreased by 334,324, that is 7.5%, to 4,134,203 from 4,468,527 as at December 31, 2013. This change was caused by a decrease in the number of provided prepaid mobile telephony services, adjusted by a strong increase in the number of pay TV services provided in the prepaid model.

ARPU per prepaid RGU amounted to PLN 18.2 in the fourth quarter of 2014, which constitutes an increase of 4.0% compared to PLN 17.5 in 2013. In 2014, ARPU per prepaid RGU decreased by 2.7% to PLN 17.7 from PLN 18.2 in the corresponding period of 2013. The main reason behind the decrease in 2014 was the fall in revenue from network interconnection caused by the regulatory reduction of MTR rates on voice services by 48.1% from PLN 0.0826 in the first half of 2013 to PLN 0.0429 in the first half of 2014, as well as lower prices on the mobile telephony market due to price pressure from our main competitors.