Team D April 2013 Strategy overview

Though portals are still strong assets, current trends are unfavorable – entering new market is necessary to survive Display is still the most important source of revenue for portals Display spending growth is slowing down To prevent decline in revenue, portals introduce paid content Paid content is not expected to be successful on Polish market E-commerce mn PLNProfit pool Revenue pool mn PLN EBITDA margin18% E-commerce is the most prospective segment of digital market in terms of size and growth predictions Current trends in e-commerce segment favor WP.PL as the acquisition target Display as % of revenue for portals 80%?% Display spending growth ?% U.S.Poland % of users paying for content 65%12% In order to survive, portals have to preemptively seek other income sources and capitalize on their current userbases

Embracing mobile market (content & services) Improving presence in social media Introducing personalized advertising Beauty & clothing Toys & products for kids House & garden Transaction platform Online payments and e-wallet Loan arrangement Follow market trends Maximize profits from online advertising Create demand for key products Generate traffic for new businesses Predicted to grow quickly Fragmented or with inactive competition Low share in online advertising spending – low impact of cannibalization Proposed strategy is based on entering e-commerce segment supported by enhancing core activities to fully utilize userbase Preserving & enhancing core activitiesEstablishing shopping platform New buisness model is based on two foundations Establishing WP.PL as a leader in online family products market in 5 years What?Why?What?Why?

By controlling all the steps of the buying process, WP will be able to achieve high margins by gradually capturing them throughout the whole process. Trust is identified as the major factor influencing the purchase delay of Internet consumers in general, but it is especially true for window shoppers. In order to quickly increase sales, WP should target window shoppers. By integrating and marketing all of the services under one brand, WP will be able to earn trust, sustain Internet users’ attention and maintain high sales conversion ratio. Target customers’ profile significantly influences the desired business model Get interested Compare prices Pay Receive the product Seal the deal Purchase process – consumer perspective Current position of WP Opportunities not yet exploited Success stories By controlling the purchase process, WP will be able to maximize number of completed transactions and generate high margins

(Para)bank WP.PL Consumer Product Payment Commission Financial agreement Installments Producer Commission ProducerWP.PLConsumer Offer + margin Order Offer Producer WP.PL PAYviaWP Consumer Instant payment Payment / Prepayment Commission x There are …… The core of the new business model is based on transaction platform for family products Each of the services will generate margins dependent on transactions made by users, with minimum risk involved x x

Implementing changes will bring XX mn PLN in total DRAFT – sample data