Cyfrowy Polsat S.A.: Rekomendacja Zarządu ws. wypłaty dywidendy - 0,32 PLN (2017-04-12)

Subject: Recommendation of the Management Board concerning the distribution of the profit for the year ended December 31, 2016

The Management Board of Cyfrowy Polsat S.A. (the "Company") hereby informs that on April 12, 2017 it adopted a resolution thereby deciding to submit a motion to the Supervisory Board of the Company on the assessment of the distribution of profit earned in 2016. The Management Board recommends the following distribution of the net profit earned by the Company in the year ended December 31, 2016, amounting to PLN 577,955,495.16 (say: five hundred seventy seven million nine hundred fifty five thousand four hundred and ninety five zlotys sixteen grosze):

(i) PLN 204,654,725.12 (say: two hundred and four million six hundred fifty four thousand seven hundred
twenty five zlotys and twelve grosze), that is PLN 0.32 (say: thirty two grosze) per share, to be distributed as dividends to the shareholders of the Company,

(ii) PLN 373,300,770.04 (say: three hundred seventy three million three hundred thousand seven hundred and seventy zlotys and four grosze) to be allocated to the reserve capital.

Furthermore, the Management Board of the Company recommends, in accordance with the provisions of article 348 § 4 of the Commercial Companies Code, that the dividend day be scheduled for July 20, 2017, and the dividend payment day for August 3, 2017.

The proposed profit distribution is consistent with the dividend policy of Cyfrowy Polsat S.A. capital group (the “Group”) adopted in November 2016, which assumes a dividend payout in the range between PLN 200 million and PLN 400 million, if the ratio of the Group’s net debt to consolidated EBITDA is comprised in the interval between 2.5x and 3.2x. The Management Board also takes into consideration the Group’s financial standing, liquidity and development prospects, as well as its strategic goal to consistently reduce the net debt/EBITDA ratio of the Group below the level of 1.75x.