APPENDIX to recent trading update

OPERATING SEGMENTS FOR FY 2020 & Q1 2021



SBB

Revenue for the SBB segment increased by 0.4% to €240.2 million in 2020, driven by increases in internet and telephony revenues, primarily due to growth in the number of subscribers. Revenue for the first quarter 2021 decreased by 2.4% to €60.3 million compared to the first quarter 2020.

Adjusted EBITDA for the SBB segment increased by 1.7% to €127.0 million in 2020, reflecting higher revenue and decreased operating expenses as a consequence of lower marketing expenses and lower legal and advisory costs, as well as lower staff costs due to staff reorganization within the United Group companies. Adjusted EBITDA for SBB segment decreased by 4.6% to €31.0 million in the first quarter 2021 compared to the first quarter 2020, while adjusted EBITDA margins were 52.9% in 2020 and 51.5% in the first quarter 2021.

Capital Expenditures for the SBB Segment decreased by 15.9% to €55.8 million in 2020 (representing 23.2% of revenue), primarily reflecting decreased investment in customer premises equipment and lower service installation investments. In the first quarter 2021, Capital Expenditures decreased by 12.6% to €13.6 million and represented 22.6% of revenue.

Cash Conversion (or Adjusted EBITDA less Capital Expenditures) for the SBB Segment increased by 21.8% to €71.2 million in 2020, primarily due to higher adjusted EBITDA and lower CAPEX. In the first quarter 2021 Cash Conversion increased by 2.7% to €17.4 million.

Telemach Slovenia

Revenue for the Telemach Slovenia segment increased 4.0% to €240.7 million in 2020, mostly due to increase in mobile and other subscription fees (result of organic growth and new acquisitions) and increase in sale of handsets and material. Positive trend continues in the first quarter 2021 as revenue increased by 6.6% to €62.3 million, primarily due to higher mobile revenues (mostly as a result of an increased number of subscribers), higher internet revenues (due to upselling and migration to EON packages) and higher mobile handsets revenues.

Adjusted EBITDA for the Telemach Slovenia segment increased 8.8% to €89.4 million (37.1% of revenue) in 2020, mostly due to increase in revenues. In the first quarter 2021, Adjusted EBITDA increased 5.9% to €23.1 million, reflecting higher revenue, lower marketing and promotion expenses due to COVID-19 pandemic and lower content costs due to discounts obtained by its peer.

Capital Expenditures for the Telemach Slovenia Segment increased 26.2% to €72.5 million in 2020, mostly due to effect of IFRS 16 accounting standard. In the first quarter 2021, Capital Expenditures for Telemach Slovenia Segment increased 20.1% to €20.4 million , mainly due to higher acquisition costs and capitalized inventory, as well as higher investments in IT projects.

Cash Conversion for the Telemach Slovenia Segment decreased 31.7% to €16.9 million in 2020, due to higher capital expenditures, while Cash Conversion for the first quarter 2021 decreased 43.8% to €2.7 million, also as result of higher capital expenditures growth.

TM BH

Revenue for the TM BH segment increased 0.1% to €74.3 million in 2020 while revenue for the first quarter 2021 decreased 3.8% to €18.5 million. Revenue in 2020 remained stable compared to 2019 while the decrease in Q1 2021 is driven by negative effect of IFRS 15 in broadband service. In the first quarter of 2021 Broadband revenue decreased 2.0% and Telephony revenue 11.3% as a result of lower average revenue per user. DTH revenues decreased 9.8% due to lower number of subscribers and lower average revenue per user compared to Q1 2020.

Adjusted EBITDA for the TM BH segment decreased 13.2% to €24.0 million in 2020, mainly due to increased programming costs (increase of 14.2%) while Adjusted EBITDA increased 10.0% to €7.1 million in the first quarter 2021, reflecting decrease in programming costs compared to Q1 2020. This has driven Adjusted EBITDA margin increase in Q1 2021 to 38.5% compared to 33.7% in the first quarter of 2020.

Capital Expenditures for the TM BH Segment increased 13.4% to €16.1 million in 2020 mainly due to investments in customer-premises equipment and decreased 7.7% to € 4.7 million in the first quarter of 2021, reflecting mainly timing differences between periods.

Cash Conversion (or Adjusted EBITDA less Capital Expenditures) for the TM BH Segment decreased 41.3% to € 7.9 million in 2020, while Cash Conversion for Q1 2021 increased 76.9% to €2.4 million with decrease in Q1 2021, both movements primarily reflecting change in programming costs.

Telemach Croatia

Revenue for the Telemach Croatia segment was €161.9 million in 2020, however this includes only ten months as Telemach Croatia was acquired by the United Group in March 2020. Pro-forma revenues in 2020, using management accounts for the pre-acquisition period, were €192.8 million. Revenue for the Telemach Croatia's first quarter 2021 was €43.9 million – these revenues relate to mobile business completely.

Adjusted EBITDA for the Telemach Croatia segment was €58.2 million in 2020 (only periods after acquisitions) and €15.1 million in the first quarter 2021. Pro-forma Adjusted EBITDA in 2020, using management accounts for the pre-acquisition period, was €67.0 million. Adjusted EBITDA margin was 35.9% in 2020 and 34.4% in the first quarter 2021.

Capital Expenditures for the Telemach Croatia segment was €37.3 million in 2020 and €11.6 million in the first quarter 2021. Telemach Croatia's capital expenditures represented 23.0% of revenue in 2020 and 26.4% of revenue in the first quarter 2021, mainly as a result of increased capital expenditures in network and one-off investments related to the integration of company into the United Group.

Cash Conversion (or Adjusted EBITDA less Capital Expenditures) for the Telemach Croatia segment was €20.9 million in 2020 and €3.5 million in the first quarter 2021, mainly as a result of higher capital expenditures.

Vivacom

Revenue for the Vivacom segment was €227.5 million in 2020, however, this includes just 5 months as Vivacom's majority share was acquired by United Group in August 2020. Pro-forma revenues in 2020, using management accounts for the pre-acquisition period, were €522.5 million. Revenue for the first quarter 2021 was €130.0 million. Main revenue segments in Q1 2021 were telecommunication services (€102.7 million), mainly mobile services (€64.0 million), and Sale of handsets and material (€15.8 million).

Adjusted EBITDA for the Vivacom segment was €98.0 million in 2020 (only periods after acquisition) and €61.5 million in the first quarter 2021 Adjusted EBITDA margin was 43.1% in 2020 and 47.3% in first quarter 2020, the margin increase primarily capturing lower cost of handsets and lower advertising expenditures. Pro-forma Adjusted EBITDA in 2020, using management accounts for the pre-acquisition period, was €232.9 million.

Capital Expenditures for the Vivacom Segment was €45.8 million in 2020 and €15.6 million in the first quarter 2021. Forthnet's capital CAPEX expenditures represented 20.1% of revenue in 2020 and 12.0% of revenue in the first quarter of 2021 with the decrease mainly reflecting seasonality of network investments in different periods and return to normal levels of video head-end and IP equipment investment after post-acquisition investment.

Cash Conversion (or Adjusted EBITDA less Capital Expenditures) for the Vivacom Segment was €52.2 million in 2020 and €45.9 million in the first quarter 2021, the significant improvement mainly reflecting improved Adjusted EBITDA margin and lower capital expenditures.

Forthnet

Revenue for the Forthnet segment was €41.8 million in 2020, however, this includes just two months as Forthnet's majority share was acquired by United Group in November 2020. Pro-forma revenues in 2020, using management accounts for the pre-acquisition period, were €248.3 million. Revenue for Forthnet first quarter of 2021, the first full quarter, was €62.2 million. Main revenue segments in Q1 2021 were telecommunication services, specifically Internet (€22.5 million), Telephony (€10.4 million) and DTH (€16.8 million) services. In addition to telecommunications, Forthnet also has a media segment with Advertising (€4.2 million) and Sublicense (€4.9 million) revenues in Q1 2021.

Adjusted EBITDA for the Forthnet segment was €13.7 million in 2020 (only periods after acquisition) and €18.1 million in the first quarter 2021. Adjusted EBITDA margin was 32.8% in 2020 and 29.2% in first quarter 2021, the margin decrease primarily capturing seasonality of non-content operating costs. Pro-forma Adjusted EBITDA in 2020, using management accounts for the pre-acquisition period, was €77.7 million.

Capital Expenditures for the Forthnet Segment was €14.7 million in 2020 and €6.2 million for the first quarter 2021 with the decrease primarily reflecting timing of content investments. Forthnet's capital CAPEX expenditures represented 35.2% of revenue in 2020 and 10.0% of revenue in the first quarter of 2021.

Cash Conversion (or Adjusted EBITDA less Capital Expenditures) for the Forthnet Segment was €-1.0 million in 2020 and €11.9 million in the first quarter 2021, mainly as a result of lower capital expenditures.

United Media

Revenue for the United Media segment decreased by 5.3% to €267.2 million in 2020, mainly reflecting the effects of pandemic on advertising expense across all markets. Revenue for the first quarter of 2021 increased by 36.4% to €84.6 million compared to the first quarter of 2020 mostly due to the effect of Nova Broadcasting Group Acquisition in February 2021. Pro-forma revenues in Q1 2021, using management accounts for the pre-acquisition period, were €93.8 million.

Adjusted EBITDA for the United Media segment decreased by 6.1% to €77.9 million in 2020, reflecting lower advertising and media selling revenues with the cost base not decreasing in parallel manner. Adjusted EBITDA for the United Media segment increased by 35.8% to €24.9 million in the first quarter 2021 compared to the first quarter of 2020, mostly as effect of M&A, while adjusted EBITDA margins were stable at 29.1% in 2020 and 29.4% in the first quarter of 2021. Pro-forma Adjusted EBITDA in Q1 2021, using management accounts for the pre-acquisition period, was €28.7 million.

Capital Expenditures for the United Media segment increased by 22.0% to €60.5 million in 2020 (representing 22.7% of revenue), primarily reflecting increased investments in content, media production equipment and R&D (United Cloud). In the first quarter of 2021, Capital Expenditures increased by 7.2% to €17.4 million and represented 20.5% of revenues. Pro-forma investments in Q1 2021, using management accounts for the pre-acquisition period, were €17.4 million.

Cash Conversion (or Adjusted EBITDA less Capital Expenditures) for the United Media Segment decreased by 47.9% to €17.3 million in 2020, primarily due to increased investments. In the first quarter of 2021, Cash Conversion increased by 252.7% to €7.5 million. Pro-forma Cash Conversion in Q1 2021, using management accounts for the pre-acquisition period, was €11.3 million