Market overview & analysis Team D March 2013 Market overview & analysis

E-commerce is the biggest segment with high growth potential and an average EBITDA margin E-commerce is a unique segment in terms of size and profit pool, providing more short-term growth opportunities than any other segment Revenue pool 13 000 mn PLN 2340 mn PLN Profit pool EBITDA margin 18% Communication is the most promising of the remaining segments with relatively high revenue pool and EBITDA margin 50 30 148 Other segments are still in early development stage and provide long-term growth opportunities 47 4

High growth of digital market size is expected, with e-commerce clearly leading the way E-commerce: most developed segment of digital market is still growing, mainly due to the increase of consumers’ spending on online shopping CAGR 24% 293% Communication: Rapid growth both in terms of users and ARPU is predicted with increasing mobile VoIP popularity 2325 CAGR 11% 12% 8% 17% 34% 184% 1260 Reading: Growth of userbase accompanied by stable ARPU growth is expected in the upcoming years

The growth is accompanied by 4 major trends Beauty/Cosmetics and Clothing sectors gaining on importance 57% of iConsumers have purchased beauty & cosmetic products online in the past 6 months, 56% have purchased clothing Only 24% will not purchase beauty & cosmetic products online in the next 6 months, followed by 28% for clothing – less than in other categories 33% of the last fashion products purchases were done online Price comparisons becoming more popular 48% of iConsumers search the Internet to compare similar products, 76% go online to check the prices High use of the application in USA and West Europe, the Polish market not saturated yet The importance of mobile services going up 94% of Poles own a mobile phone The use of mobile phones is increasing – 16% spend more time talking on mobiles 36% have some mobile apps installed on their mobile phones Internet usage of financial services highly increasing 21% of Polish bank accounts are online The number of Internet transactions has been growing with CAGR 2005-2009 amounting to 50% and is predicted to keep the pace. Ad. 1,2,3 – McKinsey report Ad. 4 http://polskainternetowa.pl/pdf/report_en.pdf

The above analysis depicts e-commerce as the most attractive digital segment, characterized by high revenue, average EBITDA margin and growth potential supported by several market trends. A look at the competitive environment of e-commerce shows more advantages of the segment Revenue of major players on e-commerce market Apart from Allegro (marketplace) the Polish online market is fragmented and therefore easier to succeed on. Nie wiem, czy dobrze zrobilam wrzucajac to podsumowanie tutaj, ale chcialam jakies wprowadzenie do omawiania wylacznie e-commerce Apart from Allegro the biggest online shops are focused on specific sectors, mainly RTV and AGD. Place for different approach. Source: E-commerce 2011, Internet Standard

PART II - DRAFT Supported by market trends, price comparison services offer significant short-term monetization opportunities OPERATING MODEL Operating the portal in its traditional form to maintain traffic. Building highly profitable start-ups bound to the core business. MONETIZATION: BEAUTY & CLOTHING COMPARISON Create a price comparison Connect it to the portal Sell the products Charge for the sold items Stress on beauty and clothing; create a mobile app Integrate to fashion, beauty and health sections; replace competitors’ adverts Attract traffic through the portal, diversify: ensure one “basket” and payment Receive an agreed percentage of the price of each product sold MONETIZATION:E-COMMERCE: having 1 basket on the website – why? Customers don’t like to be redirected to other websites + will buy more if everything in 1 place, no need to register several times, no need to pay for delivery twice. 2 oprions: 1) agreeing with the retailers on lower rates (they send everything on their own) or signing up with outsourcing company – retailers deliver there, they send all the products to customers, MONETIZATION: FINANCIAL SERVICES COMPARISON: ComparetheMarket.com, GoCompare.com and Confused.com MONETIZATION:FINANCIAL SERVICES COMPARISON Create a financial services comparison Connect it to the portal Sell the products Charge for the sold items Compare financial products like insurances, deposits, mortgages, create a mobile app Integrate to financial section of the portal Attract traffic through the portal, ensure an option to save results (time-consuming decision) Receive an agreed percentage of the price of each product sold

Expected revenues are going to amount to: PART II - DRAFT Expected revenues are going to amount to: GAZETA.PL WP.PL 8 M users 11 M users BEAUTY & CLOTHING COMPARISON FINANCIAL SERVICES COMPARISON To moze byc na czw