Strategy 2023+ of Polsat Plus Group

20 Dec 2021

Polsat Plus Group, whose founder and majority shareholder is Zygmunt Solorz, is expanding its multiplay strategy to include the production and sale of clean energy. As part of the Strategy 2023+, key segments – Connectivity under the Plus brand, Content under the Polsat brand - and a new segment – Clean Energy – will be developed.

The Group's strategy is to provide basic products and services that are used by “everyone, everywhere”. The basis of the multiplay strategy is the continuation of development of: Connectivity, with the key project of building the best and fastest 5G network, as well as the production and distribution of attractive Content "where, when and on what device you want". Therefore, the new Clean Energy segment fits perfectly into the Group's strategy. Polsat Plus Group wants to provide Poles with cheap and clean energy, and energy is undoubtedly necessary for the daily functioning of each of us.

An additional strategic impulse is the fact that Poland must transform its energy sector towards zero- and low-emission energy. The Clean Energy segment is also in line with the ESG (Environment, Society, Corporate Governance) concept of building the Group's value in a sustainable manner, which takes into account and addresses environmental, social as well as responsible and transparent business related issues.

The Group will also engage part of its free cash sources in an investment in Port Praski, which is unique in Europe. It is an investment on 38 ha in the very center of Warsaw with access to the Vistula River.

In this way, all the most important business activities of Zygmunt Solorz will be included in one Group. The strategy assumes the continuation of the attractive dividend policy for the shareholders of Cyfrowy Polsat.

  • The Group plans to acquire 67% of shares in the green assets of ZE PAK, i.e., in the company PAK Polska Czysta Energia, for the amount of ca. PLN 0.8 billion. Then, by 2026, it intends to invest ca. PLN 5 billion in order to achieve a total of 1,000 MW of clean energy generation capacity, and PLN 0.5 billion in hydrogen technologies. The purchase of shares in Port Praski amounts to approx. PLN 0.9 billion.

“Polsat Plus Group, whose foundations and most important areas of operations are connectivity and content, functions perfectly on the market. It will continue its development in these two strategic areas, while still successfully executing the multiplay strategy. The challenges of the changing world, however, create new opportunities, hence a new segment of our activity - Clean Energy - is established under the Strategy 2023+. We want to produce cheap and clean energy for Poles. The Group will also include Port Praski, which is a unique project, especially considering its location and potential. A very important element of the strategy is the continuation of the attractive dividend policy for shareholders announced by the Management Board,” said Zygmunt Solorz, founder and majority shareholder of Polsat Plus Group.

“Thanks to these decisions, we are building a unique Group. My key and effective assets (Cyfrowy Polsat (Polsat Box), Polkomtel (Plus), Telewizja Polsat, Netia, green assets of ZE PAK, Port Praski) are gathered in one Group and have the same shareholders. It is also an important stage in building the Group for many years to come,” adds Zygmunt Solorz. 

Strategic pillars of Polsat Plus Group - Connectivity, Content, Clean Energy

Polsat Plus Group is a Polish company and provides to inhabitants of Poland high-quality commodities at a reasonable price, for everyone and everywhere.

“We provide inhabitants of Poland with services and products that they use everywhere and on a daily basis. This is connectivity - the best and fastest 5G Plus Internet in Poland, the ability to communicate in any way at any time - both with family and friends, as well as at work. It is content - available on various devices, when, where and how you want: on the Internet, on a 4K set-top box and on TV, through Polsat Box Go and Polsat Go services and applications, as well as our online business focused around Interia. Energy is also such a service and a basic good for everyone. We want to produce it and deliver it to both individual and business customers. Our new, additional goal is therefore the production and delivery of clean energy, which will allow us to live in a cleaner and better environment - says Maciej Stec, Vice President of the Management Board for Strategy, Cyfrowy Polsat and Polkomtel, Polsat Plus Group - We want to develop our business and, at the same time, contribute to the increase in the quality of life of the inhabitants of Poland, ” adds Maciej Stec.

Clean energy and green hydrogen

Polsat Plus Group adds to its two pillars – connectivity and content – the third pillar: clean energy. Poland is facing a gigantic challenge of energy transformation. In Poland, about 70% of energy is still produced from coal, as a country we emit the equivalent of 400 million tons of CO2 annually, which carries huge social costs - such as respiratory diseases, strokes, heart attacks, allergies, absences from work and school, shorter life time. In the last four years, energy prices in Poland have increased on average more than twice, from PLN 159 to PLN 357 per 1 MWh in (the first 11 months) of 2021. The cost of CO2 certificates has increased on average almost 10 times over the same period, from EUR 5.8 to EUR 51.1 a year, representing about 65% of the price of coal-based energy. In recent weeks, energy prices have reached nearly PLN 1,300 per 1 MWh, and the prices of CO2 certificates have already reached EUR 90. Reducing CO2 and other pollutants and stabilizing energy prices requires quick investment in clean, green energy sources and a balanced energy mix in Poland. The energy sector needs to be rapidly transformed to achieve the EU's climate neutrality goal by 2050.

“This is the perfect moment for new players to enter the energy market. We believe that the energy transformation is needed and even indispensable for us as a society to breathe clean air and live in a better environment. We need cheaper and clean energy as part of a balanced energy mix for our families and to build the competitiveness of our companies. This creates new development opportunities for our business. And we want to be a part of it. We want to produce cheap and clean energy. " - says Mirosław Błaszczyk, President of the Management Board, Cyfrowy Polsat and Polkomtel, Polsat Plus Group

One of the new energy areas in which the Group plans to develop are hydrogen technologies, in particular green hydrogen.

“As a Group, we want to change the world, and the world is turning to green hydrogen. It will play an important role in the global energy transformation. The EU announced a rapid development of the green hydrogen economy - 6 GW of electrolyzers by 2024 and 40 GW by 2030. Poland also announced an ambitious hydrogen strategy, including 2 GW of electrolyzers, 800-1000 buses and at least 32 refueling stations. Green hydrogen can be used in many sectors of the economy, which will accelerate the reduction of CO2 and other harmful substances. Green hydrogen is also the new zero-emission fuel of the future. Hydrogen cars and buses are already mass-produced today. We want to build the full value chain of green hydrogen: from production in the electrolysis process using clean energy and water, through storage and transport, building a network of hydrogen refueling stations, production of buses to its widespread use in Poland " - said Maciej Stec, Vice President of the Management Board for Strategy, Cyfrowy Polsat and Polkomtel, Polsat Plus Group.

As part of the strategy, the Group will acquire 67% of shares in the green assets of ZE PAK, , i.e., in the company PAK Polska Czysta Energia Sp. z o.o. ("PCE"), for around PLN 0.8 billion. By 2026, the planned investments in the development of clean energy amount to approx. PLN 5 billion, which will allow to achieve production capacities of 1000 MW. The Group plans to spend approx. PLN 0.5 billion on hydrogen technologies in the next 5 years.

Investment opportunity - real estate area and Port Praski

The Group has also decided to invest part of available funds in the real estate area and will acquire shares in the "Port Praski" project.

“Port Praski is an absolutely unique investment in Europe. It is 38 ha of investment land and about 800 thousand sq m. of development in the very center of Warsaw. There is no other such location and there will not be. We want to invest in a fully self-sufficient district, combining office, residential, commercial and public buildings. Port Praski is a strategic revitalization of the Praga part of Warsaw and a unique investment opportunity - says Maciej Stec, Vice President of the Management Board for Strategy, Cyfrowy Polsat and Polkomtel, Polsat Plus Group - We also want Port Praski to be "green", hence our plans related to the use of photovoltaics and geothermal energy in the Port".

The Group plans to allocate approx. PLN 0.9 billion for the acquisition of shares in the "Port Praski" project.

Polsat Plus Group's strategy in numbers and finances

The Group's strategy in the field of finance provides for an increase in revenues from services provided to individual and business customers, an increase in revenues from the production and purchased programming content, building a position on the clean energy production market, which will open up the possibility of building a new revenue stream, effective management of the cost base through the use of synergy effects and economies of scale within an integrated capital group and effective financial management, including capital resources.

“In the financial area, our new strategy is primarily a continuation of what everyone has known for years. It has always been, is and will always be effective financial management, high care for the revenue and cost side, and at the same time taking care of the long-term development of our businesses. As far as our new areas of activity are concerned, in the energy sector we expect to achieve approx. PLN 500-600 million of incremental recurring EBITDA per year as early as in 2026. We also propose the continuation of the attractive dividend policy "- said Katarzyna Ostap-Tomann, Member of the Management Board for Financial, Cyfrowy Polsat and Polkomtel, Polsat Plus Group.

Summary of the Polsat Plus 2023+ Group strategy

The pillars of Polsat Plus Group are a multiplay strategy: Connectivity – high-speed and reliable communication which is critical to our work, education, entertainment, communication with family and friends; Content - diverse technologies ensuring public entertainment anywhere, anytime and on a selected device, and a new area - Energy - cheap, clean, necessary for the functioning and further development of Polish society and economy. The new investment opportunity is the real estate and involvement in Port Praski, a unique investment site with an area of 38 ha in the center of Warsaw. An important element of the strategy is the continuation of the attractive dividend policy.

Last updated 12/20/2021