Amárach Presentation December 2013

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Outline

Connect & Grow

Innovate & Compete

Towards the Digital Future

A Unique Study

Most reports on the digital future focus on either the demand side or the supply side – this report brings both together, along with recommendations:

• A survey of online Polish consumers about their digital experiences and expectations

• A survey of Polish businesses about their digital capabilities and plans

• Plus comparisons with other UPC/Liberty Global markets

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Connect & Grow

Innovate & Compete

Towards the Digital Future

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Households Online

41%

60%

76%

26%

48%

70%

2004 2008 2012

EU Poland

EU 2020: 100%

Source: EU Digital Agenda Scoreboard

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The Size of the Prize

3.0%

9.5%

2013 2020

Internet Economy Share of GDP

2020 = PLN 200bn

potential to reduce unemployment:

270,000

Source: Deloitte/IMF/Amárach calculations

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Digital Life - I

Source: Liberty Global/UPC Poland surveys of Internet users, 2013

146

232

130

166

Poland Netherlands Belgium Ireland

internet minutes per day

67

36

54

104

Poland Netherlands Belgium Ireland

social network minutes per day

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Digital Life - II

64

49

online video minutesper day

online newspaperminutes per day

Source: Liberty Global/UPC Poland surveys of Internet users, 2013

47

40

% downloadmovies

% streamradio

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Digital Life - III

52

27

37 34

Poland Netherlands Belgium Ireland

% use internet to work from home

Source: Liberty Global/UPC Poland surveys of Internet users, 2013

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Connect & Grow

Innovate & Compete

Towards the Digital Future

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Internet Shopping - I

Source: Treasury Ministry, Poland

% of retail sales online 2010

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Internet Shopping - II

94% use internet to shop:

Clothes

59% Books

46% Electronic

42%

Source: Liberty Global/UPC Poland survey of Internet users, 2013

Cosmetics

42%

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Internet Shopping - III

Source: Liberty Global/UPC Poland survey of Internet users, 2013

79

63 58 55

48 45

Travel Music/Movies Electronic Toys/Baby Books Medical/Health

% prefer to buy online

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Internet Shopping - IV

Source: Liberty Global/UPC Poland survey of Internet users, 2013

79

70

84 80

74

48 45

58

Poland Netherlands Belgium Ireland

% research online, buy offline % research offline, buy online

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Digital Futures - I

Source: Liberty Global/UPC Poland survey of Internet users, 2013

% agree ‘because of the internet’:

family life is better 53%

worried about loss of privacy 48%

career prospects better 69%

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Digital Futures - II

Source: Liberty Global/UPC Poland survey of Internet users, 2013

% agree ‘in future, internet will provide’:

greater urban/rural equality 61%

cheaper/smarter eHealth 46%

a better quality of life 69%

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Digital Futures - III

Source: Liberty Global/UPC Poland survey of Internet users, 2013

60

33 31

Poland Netherlands Belgium

% would like to run own business fromhome

64

44

57

Poland Netherlands Belgium

% would like to work from home 1-2days per week

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Connect & Grow

Innovate & Compete

Towards the Digital Future

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Digital Growth - I

Source: Liberty Global/UPC Poland surveys of IT decision makers, 2013

75

64

48

23

Poland Netherlands

% good growth prospects % intent to hire next 2 years

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Digital Growth - II

* Firms employing 2-9 employees Source: Liberty Global/UPC Poland surveys of IT decision makers, 2013

74

24

% see potential for more growth with 'right'digital strategy

% 'extra' turnover would grow with rightstrategy*

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Digital Growth - III

Source: Liberty Global/UPC Poland surveys of IT decision makers, 2013

80

50

70

% agree digitization importantPoland's economic prospects

% agree Poland's digitalinfrastructure behind main

competitors

% of consumers withbroadband below 30Mbps

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Digital Drivers - I

What digital initiatives will boost growth in the future?

develop digital skills in Poland

63%

tax incentives to invest in

digital

57%

partnership with digital specialists

54%

access to superfast

broadband

40%

Source: Liberty Global/UPC Poland surveys of IT decision makers, 2013

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Digital Drivers - II

What will speed up digitalisation in Poland?

reduced regulation

91%

basic economic conditions

89%

targeted government

support

88%

more support for a start-up

culture

86%

Source: Liberty Global/UPC Poland surveys of IT decision makers, 2013

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Towards the Digital Future

The right digital strategy for Poland will: • Deliver growth for the economy • Maximise the job creation potential • Create a thriving start-up culture • Enable Polish businesses to compete online

against global competitors

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December 2013

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