Unitymedia Group (IFRS Consolidated)

Continuing Growth
Annual Report 2008

Key Facts
RGU Information (in ´000) 2006
2007
2008
Homes Passed 8,584 8,643 8,685
Homes Upgraded 43 % 66 % 83 %
RGUs (1)
Basic Cable 4,930 4,762 4,619
New Services 568 942 1,561
Total RGUs 5,498 5,704 6,180
Basic Cable
Analogue 4,487 3,973 3,391
Digital 443 789 1,228
Total Basic Cable 4,930 4,762 4,619
Penetration
BCS in % of Homes Passed 57 % 55 % 53 %
Digital in % of BCS 9 % 17 % 27 %
Digital (w / Premiere) in % of BCS (2) N / A N / A 31 %
New Service RGUs
Digital TV Pay (3) 385 456 568
Retail Broadband Internet 80 199 377
Wholesale MMA Internet (4) 45 112 253
Telephony 58 175 363
Total New Service RGUs 568 942 1,561
(1) Revenue generating units, or “RGUs”, relate to sources of revenue, which may not always be the same as subscriber numbers.
For example, one person may subscribe to two different services, thereby accounting for only one subscriber but for two RGUs.
(2) Includes cable-based Premiere customers in NRW / Hesse not subscribing to a separate Unitymedia Digital package.
(3) Customers subscribing to one or more Digital TV Pay packages including second smartcards; excluding BCS customers who take Digital TV BASIC only.
(4) Multimedia- Anschluss (MMA) wholesale Internet product for landlords, excluding units which upgrade to retail broadband Internet.

Total Cable RGUs (in ´000) Cable Revenue (in €m)
6,000
5,498
5,704
6,180
4,619
6,000 800
760
857
554
800
4,930
4,762 636
536
4,500 4,500 600
486
600
3,000 3,000 400
400
1,500 1,561
1,500 200
107
200
45
942
568
104
117
136
Basic Cable Subscribers New Services Basic Cable Subscribers New Services Other
Employees Unitymedia Cable
1,600
1,200
800
400
1,335
2006 2007 2008 2006
2007
2008
Adjusted Cable EBITDA (in €m) Cable CAPEX (in €m)
1,511
46 %
400
395
400 400
400
45 %
46 %
333
300
291
300 300
27 %
300
231
23 %
200 200 200
200
100 100 100 104
100
1,591
2005 2006 UK 2007 2008
% Margin % of Revenue
2006 2007 2008 2006
2007
2008
1,600
1,200
800
400
Upgrade (in %)
100 %
75 %
50 %
25 %
16 %
43
21
172
66
167
83
2006 2007 2008
100 %
75 %
50 %
25 %

Contents
Introduction
01 CEO Letter
Company
02 Management
03 Executive Profiles
04 Interview with Parm Sandhu
08 Strategic Development
Market
10 Economy and Demographics
12 Market Potential and Competition
14 Brand and Marketing
Products
18 Unity3play
20 UnityDigital TV
22 Professional Products for
Housing Associations
Infrastructure
24 Network Operations
28 Customer Operations
30 Human Resources
Financials
32 Financial Facts

Dear Customers, Partners and Friends of Unitymedia,
The year 2008 was another successful one for us. Our strategy to migrate our large Basic Cable Subscriber base to
higher value Triple Play services continued to build as more and more consumers in our regions trusted their communication
and entertainment needs to us. We grew our subscription base of New Services, consisting of Internet, Telephony
and Digital TV Pay, to a total of 1.6 million subscribers, a 66 % growth over the previous year end.
These figures demonstrate the attractiveness of our products and the increasing strength of our Unitymedia brand as well
as enhancements to service quality and customer satisfaction. They also highlight how Unitymedia is successfully
competing in a market in which own infrastructure is becoming an important competitive advantage. Our state-of-the-art
network is ideally suited to our lead product, Unity3play. We have made significant progress towards our goal of
connecting households to our upgraded network and thereby providing them with unparalleled access to the growing
world of digital media. We acquired networks in Aachen and Wiesbaden, and performed network upgrades in a number
of rural areas such as East Westphalia, the Lower Rhine, Eifel, Sauerland and Siegerland areas, and East Hesse – 83 % of
our networks were upgraded at the end of last year – a number which will increase further this year.
At Unitymedia, we understand that upgrading our networks and rolling out Triple Play services has to be done with a clear
and dedicated customer focus – and with an understanding and cooperation of our partners in the industry and public
authorities. We work in partnership with the housing industry, city councils and other local authorities and politicians in our
regions to meet the needs of customers, suppliers, and regulators.
Our strategy and 2008 operating performance has translated into a strong set of financial results. We have been rewarded
with cable revenue growth of 15 % to €857 million and an increase in our cable EBITDA of 19 %. At the same time, we
have made use of our significant liquidity to reduce our debt level by buying back own bonds, a comforting signal in today’s
volatile capital markets.
In 2009, we will further pursue the growth potential in the growing broadband and pay TV markets: generating
sustainable growth, securing and creating new jobs, guaranteeing reliability for our partners – and at the same time
offering consumers a wider choice of innovative products, enhanced services and competitive prices for Internet,
Telephony and Digital TV. We also look forward to working with broadcasters to launch additional content on our networks
which appeals to the special interests of our customers. With this 2008 Annual Report, we want to introduce you to the
Unitymedia consumer brand, our attractive market, state-of-the-art network, compelling products and services – and over
1,600 employees who are committed to serving our customers. I want to personally thank you, our customers and
partners, for the excellent cooperation, and also our employees for their tireless efforts in the pursuit of our goals.
Parm Sandhu
Chief Executive Officer, Unitymedia / Cologne, March 2009
Introduction / CEO Letter
01

02 Company / Management
Management
Unitymedia stands for the transformation of traditional analogue TV to a consumeroriented,
highly competitive Triple Play brand and a comprehensive pay TV offering.
The Unitymedia management team has the industry experience, perspective and
mindset to actively shape this change.
Unitymedia Corporate Head Office in Cologne
Unitymedia has approximately 1,600 employees and an experienced management team
led by Chief Executive Officer Parm Sandhu. The team has many years of experience in
the German and international cable, media and telecommunications industry,
understands its concepts from the value of competitive positioning to risk management,
and has experienced several industry cycles.
Management performance is measured on the basis of subscriber growth, customer
satisfaction and financial performance.
Customer focus, creativity and cost discipline are the cornerstones of the Unitymedia
corporate culture, which are deeply engrained in all activities. They are also the drivers
behind the growth generated by the company since it was established in summer 2005.
Unitymedia’s Corporate Mission
“ Unitymedia opens
up your world –
with access that is simple, secure and cost-effective,
we inspire people to participate in society and to play
an active role in the world today.”

Dr. Herbert Leifker
Chief Commercial Officer
Dr. Herbert Leifker, aged 55, was
appointed following the acquisition of the
Tele Columbus Group by Unitymedia.
With nearly 20 years of cable experience
in Germany, Dr. Leifker has a deep
understanding of the industry and strong
long-term relationships with the housing
market. This has allowed Unitymedia to
pioneer new cooperation models such as
the “Multimedia-Anschluss” that have now
become standard in the housing industry.
Dr. Leifker was previously Managing
Director and CEO of Tele Columbus,
a company he led for 15 years, growing it
from a start-up to Germany’s largest
operator of in-home networks. He began
his career with an auditing company and
in the banking industry. Dr. Leifker studied
Law and Business Studies in Münster and
Hamburg, and holds a doctorate in Law.
Parm Sandhu
Chief Executive Officer
Parm Sandhu, aged 40, is one of the
European cable industry’s most
experienced senior executives. He is
widely recognised for his leadership at
Unitymedia, which has transformed the
structure of the German cable industry
and introduced broader competition to
the high-speed Internet, Telephony and
Pay TV markets. As a Board member of
ANGA, the Association of German Cable
Operators, he represents the industry’s
interests at international level.
Parm Sandhu joined iesy, the Hesse cable
operator that became Unitymedia, in 2003
from Liberty Media International, the
world’s largest international cable company.
At Liberty Media, Sandhu pursued
numerous strategic acquisitions as
Finance Director Europe. Prior to that, he
held a number of senior finance and
strategy positions during his six years with
Telewest Communications plc. A
chartered accountant and chartered
marketer, Parm Sandhu started his career
with PricewaterhouseCoopers in London,
where he was a manager in its Transaction
Support Group. He is a graduate of
Cambridge University and holds a first
class BA Honours degree in Mathematics.
Christopher Winfrey
Chief Financial Officer
Company / Executive Profiles
03
Christopher Winfrey, aged 33, has over
ten years of experience in media and
communications. He has spent the past
eight years in European cable operations,
planning and executing the roll-out of
Triple Play business plans and leading
over €10 billion of completed transactions.
He joined Unitymedia from Cablecom
where, as Senior Vice President,
Corporate Finance and Development,
he played a key role in its operational
turnaround, Triple Play roll-out and
financial restructuring. He was previously
Director of Financial Planning and Analysis
of NTL’s continental European operations
and a Senior Associate in the private
equity group at Communications Equity
Associates. Christopher Winfrey
graduated Cum Laude from the University
of Florida, with a Bachelor of Science in
Accounting within the Honors program.
He also received his MBA from the
University of Florida, with specialization in
securities analysis and global business.

04 Company / Interview with Parm Sandhu
“We are Bridging the Digital Divide”
Unitymedia’s CEO Parm Sandhu sees his company well prepared for continuing
growth. With a strong brand, attractive products and a consistent customer focus,
Unitymedia is set on extending its lead as a Triple Play provider.
Mr. Sandhu, in Unitymedia’s customer communications and advertisements you have to
look long and hard for the word “cable” – don’t you want to be a cable operator any more?
Quite the contrary – we’re proud to operate one of Europe’s largest and technically most
advanced cable networks. However, in everything we do, we try to look at things from
the customer’s perspective. And the customer is not interested in the technical
connection, but what comes out of it at the end: Internet, Telephony and TV in excellent
quality, attractively priced and from a single, customer-oriented provider. That is what
the Unitymedia brand stands for.
What role does the brand play for Unitymedia?
A very significant one. We do not operate nationally or internationally like many of our
DSL and telecoms competitors, and as a result are closer to our customers and can
communicate in a more targeted and personal manner. Look at it this way: we first
introduced Unitymedia as a consumer brand in summer 2007. One year later, we are
already the best-known Triple Play provider in our region. No other brand is as clearly
identified by consumers with Internet, Telephony and Digital TV from a single source.
But we won’t stop there. Only when the brand consistently fulfils its promise to the
consumer will we be successful long-term.
“ In addition to RTL, WDR, Microsoft and many others, Unitymedia is one of the companies
that have made Cologne so well known as one of Europe’s leading media and IT locations.
With its Triple Play offerings, Unitymedia is driving innovation and competition, and is
making a decisive contribution to the excellent broadband infrastructure in our region.”
Fritz Schramma, Mayor of Cologne
How do you want to stand out from the competition?
First of all, we look at the business differently, which leads us to creative concepts in
product development, communication and service. Our goal is more than just operating
a cable network. We want to make the difference to people’s lives by allowing them to
share their ideas and emotions using the entertainment and communication services we
provide. We also want to simplify people’s lives, because we offer everything from
a single source, with a superior value for money.

Jürgen Rüttgers, Prime Minister of
North Rhine-Westphalia, in dialogue with
Parm Sandhu
How is this philosophy reflected in practice?
We see this approach reflected in everything we do, in our product and value proposition
and in our constantly improving service quality. For instance, we provide a new broadband
connection at our customer’s home within 14 days or less. Our prices make broadband
Internet and Triple Play accessible to a larger public. We are also actively bridging the
digital divide, in metropolitan as well as in rural areas. Unitymedia provides full broadband
and Triple Play services in speed and quality to all consumers within the entire upgraded
network, whereas DSL providers are often technically limited as soon as they reach out
beyond city limits.
How do you measure customer satisfaction?
Company / Interview with Parm Sandhu
05
Well, I think our growth in New Services speaks for itself. However, we do conduct
customer surveys regularly, and these confirm that around 88 % of our existing
Broadband customers would recommend Unitymedia to their friends and relatives or
have already done so. Personal contact with our customers also helps us better identify
their needs. Our call centre employees, the installation teams out in the field and our
employees in Unitymedia’s flagship stores all measure the pulse of our customers every day.
Your customers not only include end consumers, but also the housing industry, i.e.
landlords, property management companies and housing associations.
The housing industry is our most important partner. We are working jointly to provide
tenants with future-proof media and communication services that offer optimum
value-for-money. Together with many housing associations we have developed the
“Multimedia-Anschluss” (Multimedia Access) as the new industry standard. This
combines our TV offerings with a basic Internet connection. Through our partnerships
with the housing industry we can further drive the upgrade of our networks, which now
reaches far into rural areas.

06 Company / Interview with Parm Sandhu
Unitymedia operates in the NRW and Hesse regions only. Is that enough to compete with
the major national and international competitors, particularly in the DSL market?
In our business, size is not the only thing that matters, although it does of course play an
important role. Unitymedia is the Triple Play provider for a European economic area with
over 11 million homes. This makes us one of Europe’s largest cable operators inside a
footprint with excellent demographics. This scale, and also the density and level of
integration of our network enable us to market Triple Play services very efficiently and
compete successfully with national and international players. In our upgraded regions, we
estimate that we are taking over 40 % of Internet subscriber growth.
“ Unitymedia has driven the necessary digitisation of TV reception successfully and with
lasting effect with the ‘Jetzt Digital’ campaign. As you can see, those who are prepared
to tackle problems courageously and creatively, and involve their partners in industry and
the political sector can achieve a great deal. Unitymedia’s commitment to also now drive
broadband coverage outside of the towns and cities in Hesse can only be welcomed. The
Hesse State Media Authority will also continue to support Unitymedia along this path!”
Prof. Wolfgang Thaenert, Director of the Hesse State Media Authority, LPR
Mr. Sandhu, like all industrial nations Germany is affected by the global economic and
financial crisis. What impact does the crisis have on Unitymedia’s business?
With our high-value offers for consumers, we are well positioned in the current economic
environment. Furthermore, home entertainment and multimedia tend to be more in
demand in a downturn. Unitymedia remains on course for growth.
How can you be so sure of that?
We offer a range of services that are very important for consumers in everyday life, in fact
essential – Internet, Telephony and TV. The consumer receives this Triple Play from
Unitymedia as a single provider, in excellent quality and at very attractive prices.
Our growth figures show that the take-up rate for this offering is very strong, also and
particularly among our cost-conscious consumers.

Placeholder
Representing the German cable industry
internationally: Parm Sandhu in an interview
with CNBC
The German market for broadband Internet, but also the digitisation of TV and
development of pay TV are still in the early stages in Germany, providing us with very
attractive long-term growth opportunities.
Does the crisis on the financial markets have any impact on the company’s financing?
After all, you are investing heavily in the network upgrade.
We established long-term financing with substantial liquidity soon after the creation of
Unitymedia in 2005 and 2006 and so are well insulated from current conditions in the
capital markets. In fact, we even reduced our debt levels in 2007 and 2008 by buying
back own bonds. We have a strong financial profile, with a solid balance sheet and
capital structure, and a proven track record for revenue and EBITDA growth. In terms of
our capital expenditure, you should bear in mind that around 80 % of our investments are
associated with subscriber growth in New Services and thereby directly linked to secured
revenues, which results in attractive refinancing of this network expenditure.
What are Unitymedia’s goals for 2009?
Over the past few years, we have had to fundamentally restructure the market in order to
create the right environment for growth with Triple Play services. We are now working on
securing growth for the future by further enhancing our customer focus and service
quality, but also by launching new, innovative products. We are superbly positioned for
the next generation of television and broadband products and services. Our employees,
our management team and I personally work tirelessly every day to achieve customer
satisfaction.
“ Over the past few years, Unitymedia has been a role model in the way it has driven
digitisation in cable. This creates a mass market for digital end devices in cable and
also the foundation for technical innovation and growth – also for our German locations
in Erfurt, Krefeld, Augsburg and Munich.”
Thomas Gerlach, CEO of TechnoTrend AG
Company / Interview with Parm Sandhu
07

08 Company / Strategic Development
Strategic Development
Unitymedia has fundamentally reshaped the cable market in NRW and Hesse since
the company was established in 2005 in order to create the prerequisite for growth
and competition. The company has made further significant progress in 2008.
2008
2007
2006
2005
2002
2000
From Fragmentation to a Growth Market
Unitymedia was established in June 2005, but the origins of the company go back
to the Hesse cable operator iesy. At “iesy”, Parm Sandhu initiated a far-reaching
market restructuring process, enabling the merger with “ish”, the cable operator in
North Rhine-Westphalia, and Tele Columbus, Germany’s largest in-house network
operator. The once fragmented cable networks were transformed into a single entity:
Unitymedia. This provided the foundation for the integration and technical upgrade
of the cable networks, a new era of partnership with the housing associations, the
introduction of Triple Play offerings and the development of a consumer brand.
The Steps towards Unity
• Sale of Premiere shares to NewsCorp
• Over one million customers with digital cable access
• Acquisition of the Aachen and Wiesbaden cable networks
• Speed of lead Unity3play product increased from 6 Mbit/s to 20 Mbit/s
• Unitymedia becomes a consumer brand
• Launch of Unity3play
• Premiere deal: sublicensed Bundesliga rights, 6-year carriage,
Premiere’s largest shareholder
• “Jetzt Digital” initiative with State Media Authorities
• Launch of national DTH platform arenaSAT
• Tele Columbus out-of-region assets sold
• iesy, ish and Tele Columbus merged to create Unitymedia
• Digital simulcast of RTL and ProSiebenSat.1 achieved
• Bundesliga rights acquired
• Networks integrated and network upgrade for New Services accelerated
• Financial and operational restructuring of iesy and ish
• Piecemeal sale of its regional cable companies by DTAG

January
February
April
May
June
July
August
September
October
December
2008 Milestones
Unitymedia sells its shares held in Premiere to News Corporation and secures
an overall positive financial result for the Bundesliga project. Unity3play speed
increased from 6 Mbit/s to 10 Mbit/s for €30.
Unitymedia launches an operational programme to facilitate ongoing process
improvements and increase customer satisfaction in all seven key areas of the
customer lifecycle.
Unitymedia further strengthens its sales organisation and direct customer
contacts by opening “flagship stores”. In the course of the year, shops open in
key locations in Cologne, Mönchengladbach, Duisburg, Wuppertal, Gelsenkirchen
Düsseldorf, Siegen, Münster and Arnsberg.
With the merger of the two German cable associations, ANGA and Deutscher
Kabelverband, the market consolidation initiated by Unitymedia also manifests
itself at the national level. Parm Sandhu is appointed international representative
of the German cable industry.
The “Jetzt Digital” initiative, a new pricing model which makes digital cable
access cheaper than analogue reception, and attractive Triple Play offerings
show an impact: the number of homes with digital cable access exceeds the
one million mark.
Unitymedia extends the “Jetzt Digital” initiative to housing associations.
Unitymedia acquires the cable networks in Wiesbaden and Aachen previously
operated by Primacom AG. The acquisition clears the way for investments in
network upgrades and opens up the remaining two major cities in the region for
Triple Play offerings from Unitymedia. Unity3play speed increased from 10 Mbit/s
to 20 Mbit/s for €30.
Value-added broadband services launched.
Greater choice in Digital TV: launch of the children’s programme package as well
as Japanese and Arabic foreign language packages.
Launch of the first Digital Video Recorder (DVR) from Unitymedia.
Company / Strategic Development
09

10 Market / Economy and Demographics
Economy and Demographics
Western Germany with the industrial, media and service centres in the Rhine, Ruhr and
Main regions is a driver of the European economy. It is also one of the continent’s most
densely populated regions and the sixth largest economic area in the EU.
Cologne – hub of Germany’s media business
The Ruhr area – largest urban
agglomeration in Germany
Unitymedia operates the cable network in North Rhine-Westphalia and Hesse. With a
population density of 438 inhabitants per square kilometre and 24 million inhabitants in
11 million homes, the Rhine / Main-Rhine / Ruhr region is one of the most densely
populated industrial regions worldwide, home to ten of Germany’s 20 largest cities.
The region accounts for 31 % of Germany’s GDP and is also home to almost half of
Germany’s 100 largest companies by revenue (not including the major banks predominantly
based in Frankfurt). Corporations and institutions with an international flavour,
strong and innovative small and medium enterprises, over 100 leading international trade
fairs and a lively education and research environment with 88 universities and higher
education colleges are the engine of this economic area.
Strong NRW / Hesse Demographics
400
300
200
100
28,4
438
27,6
193
NRW / Hesse Excluding NRW / Hesse
Population Density (inhabitants per square km) GDP per Capita (in ´000)
It is driven by an infrastructure that is unique in Europe: Europe’s densest Autobahn and
rail network, the most heavily used waterways and inland ports, the international airport
hubs Frankfurt, Düsseldorf and Cologne, and today, with Unitymedia, Europe’s most
modern and largest interconnected broadband cable network. It forms the backbone of
the media industry and secures growth and competitiveness in a modern media and
information society.
“Unitymedia has developed the cable network in NRW from a network that only
provides TV to a high performance broadband network, and in doing so has established
active infrastructure competition for Internet, Telephony and TV offerings. Not only do
citizens benefit from this competition, but also the region’s innovation power as a whole.
What is important to me is that Unitymedia is not only making broadband Internet
available to residents of urban areas, but also those in rural areas.”
Andreas Krautscheid, Minister for Federal, European and Media Affairs of NRW
25,8
22,7
119 116
Unitymedia Germany EU 15 EU 25
400
300
200
100

Düsseldorf
Cologne
NRW
The federal states of North Rhine-Westphalia and
Hesse represent 31 % of Germany’s GDP and rank
as the sixth largest economy in the European Union
as measured by GDP
Frankfurt
HESSEN
Economy and Demographics / Market
11
Düsseldorf – capital of North Rhine-Westphalia
Frankfurt – Germany’s banking metropolis

12 Market / Market Potential and Competition
Market Potential and Competition
Germany is one of the world’s largest economies but still lags behind other industrial
nations in broadband Internet, Triple Play and pay TV penetration. The switch to digital
TV that is only just starting and the emerging Triple Play market create an excellent
starting position for Unitymedia to take significant market share in the region with its
Unity3play offerings.
Industry analysts estimate the total volume of
the German fixed line telephony and broadband
Internet market alone to be approximately
€40 billion
Germany lags behind other key European markets
German penetration rate growth above other
European markets
Historical DSL domination in German broadband
Cable competition now key growth driver
The demographic and economic quality of the NRW and Hesse region and its
state-of-the-art technology and networks are already playing a decisive role in
Unitymedia’s growth. The company sees significant further growth potential for
the future: with Internet, Telephony and Digital TV – Triple Play via cable – Unitymedia
has introduced competition to a market that has historically been dominated by the
former incumbent, Deutsche Telekom. Due to the decades-long lack of infrastructure
competition between cable and DSL networks, the German broadband market
remains highly underdeveloped compared to other European states.
Broadband Penetration of Households in European Markets (in %)
80 %
60 %
40 %
20 %
49
3
46
79
31
49
2007 Broadband Penetration – Cable 2007 Broadband Penetration – Other Platforms
Cable Emerging as Driving Force in German Broadband
69
20
49
Despite its late entry to the broadband Internet market, cable in Germany is demonstrating
dynamic growth rates; the cable operators are now surpassing their DSL competitors.
In the second half of 2008, the large German cable operators have taken between 20
and 30 % of all Internet adds, up from virtually zero three years ago. In this competitive
environment, cable is increasingly exploiting its technical advantages over DSL and VDSL
offerings, which enables cable operators to price products aggressively while offering
higher quality.
Digitisation and Growth Potential with Digital and Pay TV
60
13
47
Sources: Screen Digest, Euromonitor
DE NL CH UK ES FR IT
As with broadband Internet, Germany’s adoption of digital TV reception is also below the
average for industrialised nations. Unitymedia has successfully undertaken a number of
key initiatives to prepare the way for new growth: in 2005, Unitymedia achieved full digital
simulcast agreements with the leading domestic private broadcasters RTL and
ProSiebenSat.1, which were followed by the first digital pay TV offerings from these
groups. This milestone has encouraged many more broadcasters to enter the digital
marketplace: over 300 TV channels are now available digitally via Unitymedia.
51
10
41
61
3
58
45
45
80 %
60 %
40 %
20 %

Digital adoption in Germany behind European
average
Unitymedia successful with key initiatives to drive
digitisation
27 % of customer base now digital
At year-end, Unitymedia’s digital cable customers
already had 568,000 pay TV subscriptions
A growing number of attractive channels and the
increasing awareness of the Unitymedia brand are
further contributing to this growth
Unitymedia provides its “Multimedia-Anschluss” customers with plug and play cable
modems and, if contracted, also digital set-top boxes that enable landlords to switch
their properties over to full digital reception quickly and easily.
In September 2007, Unitymedia started the “Jetzt Digital” initiative in conjunction with the
State Media Authorities. As a result of this initiative, which includes differentiated pricing
making digital television one euro cheaper than analogue for residential customers,
27 % of Unitymedia’s cable base was on digital access at the end of 2008. Unitymedia
has thereby established a viable digital platform from which to upsell into higher tier
pay TV services, providing it long-term growth potential in the developing pay TV market.
Digitisation in Europe (in %)
80 %
Average
60 %
40 %
20 %
39
Source: Screen Digest
87
Success in a Highly Regulated Environment
69
Penetration of Households
53 53
DE UK FR IT ES
Market / Market Potential and Competition
By adopting a collaborative approach to working with the local, national and European
regulatory and political bodies, Unitymedia has been able to pursue its growth strategy
while conforming to all regulations. Examples of this include: the acquisition and partial
sale of Tele Columbus; the restructuring of the pay TV market through the acquisition of
the Bundesliga football rights; the reduction in the number of analogue TV channels; the
introduction of new pricing models; the digitisation initiative “Jetzt Digital”, and most
recently the acquisition of the Primacom cable networks in Aachen and Wiesbaden.
80 %
60 %
40 %
20 %
13

14 Market / Brand and Marketing
Brand and Marketing
Unitymedia is the brand consumers in NRW and Hesse associate with the Triple Play
offering of Internet, Telephony and TV. No other brand in the area of telecommunications
and media achieves a comparable Triple Play brand and product profile among
consumers in the region.
An unmistakable brand: Unitymedia advertising
appeals to emotions and common sense alike
A Strong Consumer Brand
Regular market analyses and consumer surveys substantiate the appeal of the Unitymedia
brand, which was first introduced to consumers in the region in summer 2007:
• In response to the question “Do you know providers who offer Internet, Telephony and
TV from a single source; if so, which?”, Unitymedia is named far more than all other
competitors (survey by MSG Marketing Research among 600 homes in the region,
Q3 / 2008).
• Unitymedia is identified as a Triple Play provider ahead of competitors such as
Deutsche Telekom, and well ahead of Vodafone, 1&1, Alice, Netcologne and others in
aided surveys.
• 88 % of Unitymedia’s existing Internet customers would recommend Unitymedia or
have already done so. 32 % of existing Internet customers have even actively acquired
new customers for Unitymedia.
• Unitymedia also achieves a high level of customer satisfaction and willingness to
recommend the offering to others among customers with digital cable access and
pay TV subscriptions. Satisfaction increases with the number of pay TV packages
ordered: almost 90 % of all UnityDigital TV customers with at least two pay TV
packages would recommend Unitymedia or have already done so (survey by
Psychonomics AG among 800 customers, October 2008).

Above
Unitymedia advertising on a roll: branded
tram in Cologne
Advertising with local colour: billboards in
Frankfurt and Cologne dialect
Efficient Marketing City by City
The rapid development of the Unitymedia brand and the equally accelerating consumer
acceptance of New Services are the result of a marketing strategy tailored for each
locality. Unitymedia focuses its campaigns on specific cities and areas, which are first
subject to a detailed analysis of the campaign’s potential impact. The time of the network
upgrade, the competitive environment, local partnerships with housing associations and
the company’s presence with Unitymedia shops are just some of the factors incorporated
in this analysis. On this basis, Unitymedia then launches targeted marketing campaigns
which are particularly cost-effective in terms of their advertising impact. Posters, radio
ads, direct mail and other advertising means can be tailored to local circumstances and
combined with individual partnerships in the respective area – such as cooperation with
local events, publishers or housing associations.
Integrated City-based Marketing Campaign (example: Düsseldorf)
Online
Cooperation
Rheinische Post
Local PR
Event
Shop Opening
Mailing + Promotion
Retail
Mega-retailers
Shop in Shop
Mini-retailers
Billboards
and Citylight
Advertising
3play
Radio
Commercials
Düsseldorf
City-based Activities
Home
Customer
Consulting
Inserts
Rheinische Post
BILD
Market / Brand and Marketing
Sponsoring
Cinema Festival
Direct Mailings
Ethno
Ethnic Marketing
15

16 Market / Brand and Marketing
Above
The Unitymedia customer portal offers
comprehensive service, information and
entertainment
Local Advertising, Tailor-made
Unitymedia effectively leverages its knowledge of its local markets with tailor-made
advertising campaigns. They reflect the distinctive spirit and pride of local communities
and consequently score high on awareness, sympathy and sales results.
Personal Advice Locally, by Telephone and Online
An important component of Unitymedia’s marketing strategy is personal dialogue with
the consumer. Trained multimedia advisers explain to Unitymedia customers locally the
new possibilities offered by their cable connection – including the savings potential
compared with telephony and DSL providers. A Unitymedia infomobile tours the region
daily to offer consumers the possibility of getting to know and trying out the New
Services without any obligation. In more and more cities, Unitymedia is also opening
flagship stores to demonstrate Triple Play via cable. The company also has partnerships
with specialist retailers.
“ Unitymedia is the first real Triple Play brand in Germany. In 2009, we want to further
intensify our brand profile among consumers and by doing so further extend
our lead over the competition.”
Maik Emmermann, aged 40, is Senior Vice President, Marketing and Product Management,
at Unitymedia and responsible for the development, implementation and
marketing of the complete Unitymedia product portfolio, ranging from analogue basic
cable services to Triple Play and digital pay TV services.
With the Internet customer portal launched in summer 2008, Unitymedia expanded its
online customer service to a comprehensive entertainment and information offering. At
www.unityweb.de, Unitymedia customers can access their personal emails from any PC,
view their invoices online and change their personal details – or even find TV and movie
tips, the latest news, job ads, personal ads and much more.

Unitymedia flagship store
A Strong Brand Drives Demand in Broad Sales Channel Mix
Market / Brand and Marketing
Unitymedia has a differentiated sales structure and can therefore tap broad growth
potential. Products and campaigns are increasingly tailored to customer segments
and sales channels.
Primary Channels Secondary Channels
Inbound Telesales
Unitymedia call centre
Field Sales
440 agents
Retail
More than 150 retail outlets /
15 flagship stores
Outbound Telesales
16 agencies
Websales
Online ordering and customer
service
Housing Associations
Long-term cooperation /
MMA contracts
Unitymedia Mobile
Visits MMA homes
Info Channel
Analogue and digital
Member Get Member
Referral
17

18 Products / Unity3play
Unity3play
Unity3play is Unitymedia’s core concept: bundling broadband Internet, Telephony and
Digital TV enables the consumer to benefit from significantly higher quality and choice
at far lower cost.
Unity3play growth
Unique value proposition
Increasing strength of brand
Over 80 % of new customers
take Unity3play
Established as leading 3play provider
Significant increase in Unity3play
Existing customers switch to Unity3play
products with higher bandwidths
Integrated Triple Play Strategy
Faster, cheaper, better from a single provider: this is how the advantages of Unity3play for
the consumer can be summarised. In addition to price savings of around 30 % compared
with traditional offerings, there are also cable’s typical quality advantages: Higher Internet
download speeds, extensive telephony features and a quality and reliability that regularly
sees Unitymedia receive awards from consumer and specialist magazines.
Activations
100 %
75 %
50 %
25 %
Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08
RGU Development
Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08
3play Pickup – Powerful Combination of Brand and Value Potential
Q4/08
Q4/08
100 %
Digital cable access with up to 70 TV and over 60 radio channels is included in
Unity3play at no extra charge. Unity3play can be supplemented with additional services
according to the consumer’s individual needs:
• Higher Internet download speeds of up to 32 Mbit/s
• Telephony options such as Telefon PLUS (to support ISDN systems / devices or
the “Spar” offerings for international calls, International FLAT or SPAR international)
75 %
50 %
25 %
1play
2play
3play
1play
2play
3play

Successful Unity3play product accelerates
digitisation
Critical mass of digital households reached
Free digital receivers, easy access and
simple pay package structures
Free trial period drives take-up of pay packages
Upselling basic cable customers to Unity3play
significantly drives value creation and customer
loyalty
Positioning Digital TV one euro below analogue
Basic Cable Service TV (BCS) drives digitisation
and pay TV uptake
• Pay-per-view access to the latest hit movies at the time the viewer wishes (“Kino auf
Abruf”) in Dolby® Digital and access to adult entertainment from “Blue Movie”
• Additional pay TV programme packages
• Digital Video Recorder (DVR) rental
The numerous ways of enhancing Unity3play increase customer loyalty while creating
additional revenue streams for Unitymedia. Unitymedia is constantly exploring further
innovative ideas to enhance the customer experience and at the same time generate
new sources of revenue.
Free Installation, Free Hardware
One particular feature of Unity3play is the comprehensive service offering: the entire
hardware – cable modem, wireless Internet router and the digital receiver – is provided
by Unitymedia without additional charge. If the customer wishes, a technician connects
the hardware at the customer’s home at no extra charge. This offer, which comes at a
particularly low entry level price point, has enabled many consumers to access the
Internet for the first time, including a high percentage of older citizens, or “Silver Surfers”,
who are playing an active role in the media and information society today.
Driving Growth: Integrated Unity3play Product Strategy
Unity3play Approach
Customer Loyalty
Digital TV
Basic
Digital Conversion
BCS
Digital TV
Pay
Triple Play Upsell
€10 €19 €40
Products / Unity3play
19
Unity3play
ARPU

20 Products / UnityDigital TV
UnityDigital TV
As of 31 December 2008, 1.2 million Unitymedia customers already had digital cable
access. And this number is growing by the day due to an ever increasing choice of
attractive channels, the success of Unity3play and Unitymedia’s digitisation initiative in
partnership with the political, regulatory and housing association sectors. Take-up of
pay TV and near video-on-demand offerings is also increasing in the course of digitisation.
A wider choice of channels, digital sound and picture quality and greater ease of use are
convincing more and more consumers to switch to Unitymedia’s digital cable access.
The price is also compelling: since January 2008, Unitymedia customers with single user
contracts pay one euro less than customers with analogue access. Digital cable access
is also part of the successful Unity3play product.
Unitymedia provides housing associations with digital cable access on a bulk basis at
particularly attractive rates. This includes basic Internet access in addition to a digital
receiver for every home. At the same time, Unitymedia is driving digitisation via targeted
marketing measures and by providing extensive consumer advice.
These diverse activities explain the trend towards digital reception among cable
households in NRW and Hesse: in 2008, Unitymedia grew the number of digital basic
access subscriptions from 789,000 by over 50 % to 1.2 million.
Digitisation Driving Pay TV Growth
At the end of 2008, Unitymedia had 568,000 pay TV subscriptions – an increase of
25 % from the previous year. German and international broadcasters are increasingly
recognising the growth potential of this market and are working with Unitymedia as a
partner and platform to market their channels. In 2008, Unitymedia was able to extend
its pay TV offering by a number of new channels, such as, for the first time on German
TV, the US channel “FOX”, which broadcasts popular TV series. Unitymedia rewards
viewers who order a pay TV package by activating a bonus package consisting of
25 attractive channels from around the world.
Pay TV Take-up & Digitisation
600 30 %
500
400
300
200
175
2006 1XY 2007 2008
Digital TV Pay Subscribers (in ´000) Digital BCS (in %)
185
25 %
20 %
15 %
10 %

The new DVR gives UnityDigital TV subscribers
ultimate control over their TV viewing
Every home with digital cable access receives free access to the movies-on-demand
offering, “Kino auf Abruf”, which enables viewers to watch the latest hit movies at the
time they wish, only a few months after cinema launch. Adult entertainment is provided
by the two “Blue Movie” channels, which are protected with comprehensive youth
protection measures.
“We very much welcome the fact that Unitymedia is driving digitisation with
attractive prices and programme offerings.”
Hannes Heyelmann, Managing Director of the Entertainment Division of
Turner Broadcasting System in Germany
Tailor-made Television with the Digital Video Recorder
Products / UnityDigital TV
21
Since December 2008, Unitymedia offers its customers the Digital Video Recorder which
enables viewers to watch TV without being tied to fixed broadcasting times. With a
twin tuner and a 160 Gigabyte hard drive, the recorder allows up to two broadcasts on
different channels to be recorded easily at the same time, while the viewer watches
a third. Channels being watched live can also be paused at any time – to take a phone
call, for instance – and viewing can then be resumed later. Via the electronic programme
guide, programmes can easily be selected for recording, while the on-screen menu
allows viewers to manage the programmes recorded. Unitymedia offers Unity3play
customers to rent the high quality recorder with prices starting at only €5 a month.

22 Products / Professional Products for Housing Associations
Professional Products for Housing Associations
A comprehensive media and communication offering via cable not only ensures
modern comforts and satisfied tenants, but also secures the value and future
prospects of the property. A product concept specifically tailored to the needs of
housing associations makes it easier for tenants and landlords to gain access to
Internet, Telephony and Digital TV from Unitymedia.
The magazine “Haus & Medien”, published by
Unitymedia, informs regularly about the latest
topics, trends and products for the housing
industry
The partnership between cable and the housing associations has proven itself over more
than 20 years. Once, the success model was based on particularly reasonably priced TV
reception for all tenants in the property and easy billing via additional rental charges, but
now the requirements are far more extensive. Unitymedia has further developed this model
together with its housing association partners for today’s digital world: the “Multimedia-
Anschluss”, MMA in short, has since quickly established itself in NRW and Hesse as the
new standard for the housing sector. The MMA provides all tenants with multimedia
services at discounted rates: these include basic Internet access, and if they wish, Digital
TV and Telephony as well. Depending on the needs of the property and the tenant structure,
individual solutions are also possible: the “Tele&Fon” option launched in 2008, for example,
combines digital cable access with a particularly reasonably priced telephone connection.
In addition, higher Internet speeds and other extras can be ordered individually by the tenant.
For the housing associations, this not only makes their housing stocks more attractive –
thanks to close cooperation with Unitymedia they can also meet one of the most urgent
requirements to secure the future of their properties at the same time, as an integral part
of an MMA is the modernisation of the in-house distribution systems and / or its cabling.
Owners can therefore benefit from the valuable experience and know-how gained from
thousands of installations by Unitymedia’s specialists, who not only create a modern
digital infrastructure but, if necessary, also ensure the proper deconstruction of the old
systems. From the initial technical survey to providing coordinated information to tenants
and regular maintenance, owners or property managers can count on a comprehensive
service and personal customer care from Unitymedia.
Back to the Future: Housing Associations Returning to Cable
Housing associations, local providers and private landlords who in the nineties supplied
their tenants with TV via satellite are increasingly returning to cable. These include, for
example, Nassauische Heimstätte, which in cooperation with Tele Columbus has switched
27,000 homes from satellite to cable and by now has switched around 45,000 homes over
to “Multimedia-Anschluss”. Further examples of this trend are KFS Berghaus/Sahle
Wohnen, Gemeinnützige Wohnungsbaugenossenschaft Porz, Düsseldorfer Bau- und
Spargenossenschaft, Rheinwohnungsbau in Duisburg and Immeo Wohnen, Essen.
“ Digitisation is one of our most important media policy tasks. We are glad that the
‘Jetzt Digital’ initiative is progressing so successfully and that today North Rhine-
Westphalia along with Hesse has the best digitisation rate in German cable.”
Prof. Dr. Norbert Schneider, Director of the LfM, the State Media Authority of NRW

Products / Professional Products for Housing Associations
The Unitymedia product portfolio enables customers to put together the services they
require individually à la carte or to bundle them in reasonably priced, tailor-made
packages. “Multimedia-Anschluss” already includes basic Internet access and, if the
customer wishes, a telephone connection. The digital MMA even offers the basic Digital
TV offering as standard.
Internet Telephony TV Service
Access including
flatrate
• 2,000 kbit
per second
• 10,000 kbit
per second
• 20,000 kbit
per second
• 32,000 kbit
per second
Access including telephony
flatrate within Germany
• Two telephone lines
• Telefon PLUS, for
ISDN terminals
• SPAR International,
international rate
• International FLAT,
fixed price for fixed-line
calls to 27 countries
Digital and analogue
cable access
• Digital TV BASIC, 60 TV-
and 67 radio channels
• Digital TV PLUS, 22 family-
oriented channels
• Digital TV EXTRA, 17
special interest channels
• Premiere Fussball,
Bundesliga Live
• INTERNATIONAL,
50 international channels
• KINO AUF ABRUF,
Blockbuster
• BLUE MOVIE,
adult entertainment
Hardware, installation
and advice
• Installation service
• Hardware service
“Multimedia-Anschluss”
• Hardware service
Cable Modem
• Hardware service
Digital Receiver
• Hardware service
WLAN-Router
• SmartCard service
23

24 Infrastructure / Network Operations
Network Operations
The Unitymedia cable network is unique in terms of size, performance and technical
development prospects, also by international standards. Significant investments in
technology and network development connect more and more people to the world of
digital broadband.
The Unitymedia cable network stands for state-ofthe-art
engineering and craftsmanship, from the
overall network architecture to the cable socket
of each individual customer – a real example of
“Deutsche Wertarbeit” (German quality workmanship)
combined with tailor-made product solutions, which
for landlords also secures tenant satisfaction and
the value of their properties in the long term
Unitymedia’s quality standards span the entire
network, including the installation of future-proof
in-house cabling
Unitymedia operates Europe’s largest interconnected cable infrastructure: 8.7 million
homes are passed by the Unitymedia network. It dates back to the former state-operated
network of Deutsche Bundespost, which was built according to a telecommunication
standard. Upgraded by Unitymedia to a hybrid fibre coaxial (HFC) network, it is 100 %
digital and combines maximum transmission capacity, stability and security with high
performance and cost-efficiency. This technical design is fundamental to the provision of
competitively priced and advanced Triple Play services.
The heart of the Unitymedia cable network is the Network Operation Centre (NOC) in
Kerpen near Cologne. This is where the entire network is managed and monitored
centrally around the clock, where all development and planning activities as well as all
technical service activities are coordinated. In the unlikely event of an outage the NOC
initiates immediate countermeasures and assures that services can be re-established
with minimal customer impact. The technical customer hotline is also based in the NOC.
Network Upgrade at 83 %
All homes passed by Unitymedia can receive both analogue and digital TV and radio
channels; 7.2 million homes or 83 % have already been upgraded for access to Triple
Play services at the end of 2008. Unitymedia is thereby not only upgrading all metropolitan
areas in NRW and Hesse, but also many rural areas: in NRW, the East Westphalia-
Lippe region, Münsterland, parts of the Lower Rhine, Eifel, Bergisches Land, Sauerland
and Siegerland regions are already upgraded; in Hesse, the greater Main-Taunus region,
large parts of East Hesse and the Fuldaer Land. In 2009, Unitymedia will continue its
network upgrade in rural areas.
Upgraded Homes Passed (in ´000)
7,500
6,000
4,500
3,000
1,500
3,675
5,661
7,222
2006 2007
2008
7,500
6,000
4,500
3,000
1,500

Unity3play available
Unity3play availability planned until end of June 2009
UnityDigital TV available
No cable
As of May 2009
The combination of Internet, Telephony and
Digital TV is already present in practically all
towns and cities in North Rhine-Westphalia and
Hesse. Thanks to cooperation with housing
associations and local communities, Unitymedia
is increasingly also providing rural areas with
access to Triple Play – including those areas
where DSL was so far unavailable. The comprehensive
digital TV offering, UnityDigital TV, is
available in the entire Unitymedia network
Unitymedia network specialists implementing
a network upgrade
Bocholt
Lemgo
Warendorf
Bielefeld Detmold
Münster
Borken
Gütersloh Oerlinghausen
Marl
Recklinghausen
Paderborn
Wesel Dorsten Castrop-Rauxel
Brakel
Hamm
Lippetal
Bottrop
Dortmund Ense
Oberhausen
Moers Bochum
Schwerte
Warstein
Duisburg Essen Witten Arnsberg
Krefeld
Iserlohn
Velbert Hagen Sundern
Kassel
Schwalmtal Düsseldorf Wuppertal Plettenberg
Remscheid Attendorn
Neuss
Eschwege
Solingen
Bad Wildungen
Grevenbroich
Lennestadt
Leverkusen Olpe
Bad Berleburg
Bebra
Jülich
Bergisch
Bergheim Köln Gladbach
Schwalmstadt
Düren
Siegen
Bad Hersfeld
Eschweiler Wesseling Lohmar
Kirchhain
Aachen Erftstadt
Marburg
Stolberg
greater
Dillenburg
Zülpich Bonn area
Euskirchen
Schleiden
Gießen
Wetzlar
Fulda
Network Cluster Splits
Rheine
HFC technology guarantees high performance reserves, even with high usage. Long
before a local network reaches its limits due to high subscriber numbers, Unitymedia
carries out capacity extensions and so-called “cluster splits” in the network. As a result
of these cluster splits, as already performed in cities with high broadband penetration,
network capacity is multiplied. Investment in R & D continues apace, with Unitymedia’s
research and development teams continually identifying, reviewing and testing new
technologies for improving efficiency still further. This also includes, for example, the
switch to the planned data transmission standard DOCSIS 3.0.
The Future Prospects of “Deep Fibre”
Minden
Bd. Oeynhsn.
Herford
Usingen
Friedberg
Taunusstein Karben Hanau
greater
WiesbadenFrankfurt
area
Eltville Seligenstadt
Rüsselsheim
Dieburg
greater
Darmstadt area
Bensheim
Lampertheim
Infrastructure / Network Operations
25
With the launch of DOCSIS 3.0, the IP standard for cable networks, transmission rates
of more than 100 Mbit/s to a subscriber will become possible over the next two years.
This can take place on the existing cable infrastructure, but as customer take-up
increases, fibre is driven deeper into the networks. Cable thereby has a significant
advantage with regard to investments: capacity extension is only necessary
once a sufficient number of customers has been acquired. Thanks to DOCSIS 3.0,
these services can be realised via the current coaxial networks and don’t require to
lay fibre inside people’s homes.

26 Infrastructure / Network Operations
Above
Overview of the entire network: in the
monitoring room of the Network Operations
Centre in Kerpen, the Unitymedia infrastructure
is monitored around the clock
The hybrid fibre-coax network from Unitymedia
differs technically in many respects from current
and future DSL technologies
Unitymedia customers, for example, enjoy a consistently
high download speed, irrespective of the
distance between their home and a network node
With DSL technologies, on the other hand,
performance declines rapidly depending on the
network density. Forthcoming transmission
standards such as DOCSIS 3.0 secure the system
and customer benefits of cable in the long term
Rapid Intervention in the Event of an Outage
Cable laid underground is regarded by all media providers, consumers and landlords as
the most reliable technology. Unitymedia has established a rapid intervention and repair
concept in the event of network damage – for example during roadworks. Unitymedia’s
24/7 network control facility allows seamless intervention and repair if a fault occurs: due
to the interconnected nature of the Unitymedia network, failures are usually detected in
seconds; strategically located repair teams are then mobilised to ensure that the problem
is resolved quickly. Advanced Mobile Broadcast Units are also used to bridge the gap
until the problem is fixed, allowing customers to continue their TV viewing in the event of
any major repairs being undertaken.
Network Capacity
Mbit/s
100
80
60
40
20
1 km 2 km 3 km 4 km 5 km
1 km
2 km 3 km 4 km
Cable: DOCSIS 3.0
Cable: DOCSIS 2.0
VDSL 2.5-Band (DS)
VDSL 2.4-Band (DS)
ADSL 2plus
ADSL
Distance to Headend (Cable) Resp. Central Office (DSL) (in km) Source: Conexant, 2005
5 km
Mbit/s
100
80
60
40
20

Backbone
Distribution Networks
MasterHeadend / Playout Center
Hub (headend)
üBK (local headend)
Source: Unitymedia 2008
The structure of the interstate fibre-optic
networks and regional distribution networks
reflect the economic and population structure of
North Rhine-Westphalia and Hesse
Dortmund
Duisburg
Bochum
Ratingen
Düsseldorf
Neuss
Kerpen
Mettmann
Monheim
Cologne
Hürth
Münster
Soest
Bielefeld
Marburg
Gießen
Bad Homburg
Frankfurt
Darmstadt
Infrastructure / Network Operations
27
Kassel
Fulda
Unlike conventional cable networks, which are constructed as regionally separated “cable
islands” and connected via satellite headends or point-to-point radio systems, Unitymedia
operates a unique, homogeneous and fully interconnected cable infrastructure. This allows
for central 24/7 operation and monitoring by the Network Operation Centre in Kerpen and
results in unrivalled stability and reliability.
“Unitymedia operates Europe’s most modern cable network. Its scale, structure and
quality are an excellent basis for the introduction of innovative products and services.”
Colin Büchner, aged 40, Senior Vice President, is responsible for Unitymedia’s Network
Operations and Technology, including the operation of the state-of-the-art Network
Operation Centre in Kerpen.

28 Infrastructure / Customer Operations
Customer Operations
Delivering a positive customer experience is of utmost importance to Unitymedia.
Unitymedia continued to improve its customer-led organisation in 2008 by increasing
its headcount in customer-facing departments and further enhancing its process
management.
The Unitymedia customer hotline offers competent
personal advice on all products and services
Self-Care Rate 2008 (in %)
40 %
35 %
30 %
25 %
25 25
As an increasing proportion of our subscribers sign up for the more complex Triple Play
services, the demand for “next generation” customer service rises.
A Customer-centric Organisation
Unitymedia receives over 20,000 customer contacts every day, from customer orders,
upgrades and service extensions through technical support issues to more general customer
questions. As a customer-centric organisation, Unitymedia is able to handle all orders and
requests swiftly and professionally. 590 employees at the Unitymedia call centres in Bochum,
Marburg and on the repair line in Kerpen are the external face of Unitymedia.
Milestone Achievements Help to Manage Growth
2008 was a year of further improvements in customer service: with new hires, staff
education programmes, enhanced outsourcing capacity and the establishment of
dedicated teams to deal with order entry, call number porting, customer complaints and
the specific interests of key accounts and sales agents, Unitymedia further improved its
service. Furthermore, the introduction of an integrated document management system
which scans customer correspondence and makes it available electronically to all service
employees, as well as the parallel implementation of intelligent call routing and recognition
systems noticeably reduced processing times and improved customer satisfaction.
29
28
29 29
26
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dez
A growing number of our customers are actively using the web-based self-care function
This enhanced quality of service would be impossible without the commitment of
Unitymedia’s talented workforce: new, flexible shift patterns and other changes to the
Customer Service Hotline have significantly improved customer response times. The
introduction of a comprehensive, web-based self-help portal where, for instance,
35
34
37
40
37
40 %
35 %
30 %
25 %

Above
On the way to the customer: the Network
Operation Centre in Kerpen also manages the
deployment of the service teams
customers can check their invoices, change their address details or activate their SmartCard,
has also helped to relieve the pressure on telephone hotline operators, freeing them to
help with more complex customer issues. As a result of these ongoing improvements, a
large proportion of Unitymedia’s continued customer growth can be traced back to
recommendations from satisfied customers.
Operating Framework Built Around the Customer Experience
An uncompromising focus on customer satisfaction requires that all contact between
customers and staff is handled with the utmost attention to detail. Unitymedia’s customer
lifecyle methodology has been mapped onto seven key processes that form the basis
of Unitymedia’s operating framework. The goal is to reduce processing times and the overall
volume of customer calls, ensure lasting customer satisfaction and allow Unitymedia to
scale efficiently for future growth.
The 7 Key Processes
6. Billing &
Collection
5. Manage
Faults
7. Deactiviation,
Winback &
Retention
7
4. Care
1. Target &
Market
Infrastructure / Customer Operations
29
2. Acquire
3. Provide

30 Infrastructure / Human Resources
Human Resources
Unitymedia’s progress over recent years is a tribute to its motivated workforce:
approximately 1,600 employees form an effective team, constantly serving customers,
driving network upgrades and further developing products and services.
The company mission is supported by
the company’s three core values. branded
the “3 Cs”
These are actively communicated at all levels
through leadership and team meetings
Actively shaping growth
Unitymedia offers interesting areas of work and great career opportunities since it is
uniquely positioned as a central link between broadcasters and the television audience,
as a successful competitor to the former incumbent for telephony and broadband
services, and as a pioneer of digitisation. Unitymedia creates apprenticeships in many
areas of the organisation and promotes equal opportunities at the workplace. A total of
150 new employees were hired in 2008, covering the most varied job areas from IT
Electronics Technician and Network Engineer to Marketing Specialist. The greatest need
is still in the area of Customer Service.
Development: Employees Unitymedia Cable
1,600
1,200
800
400
1,335
174
150
366
645
141
182
435
753
2005 2006 UK 2007 2008
Network Operations and Technology
Customer Operations
1,511
Clear goals and values provide guidance: encouraging employees to be proactive and
creative in line with the “3 Cs” is an important objective at Unitymedia. A culture of permanent
improvement in workflow and processes and ongoing investment in IT further enhances
Unitymedia’s efficiency and productivity and leads to improved customer satisfaction.
Employee development and dedicated on-the-job training are an established part of
personnel policy at Unitymedia. This helps Unitymedia promote specialist and management
staff from within, thereby creating attractive career opportunities. Unitymedia’s compensation
policy also follows a customer- and growth-oriented strategy by rewarding employees for
company as well as personal performance.
C 1 Customer First
C 2 Growth through Creativity
C 3 Cost Consciousness
1,591
145
194
457
795
1,600
1,200
Sales and Marketing
800
400
General and Administration

Above
Communication at Unitymedia means more than
just meetings and emails: the creative exchange
of ideas and experiences between colleagues is
actively promoted
Unitymedia employees – dedicated at work and
committed in their communities
Infrastructure / Human Resources
31
Unitymedia seeks to cultivate dialogue across the entire organisation: all workstations at
Unitymedia have access to the Unitymedia Intranet, supplying up-to-date company,
product and market information. Employees also receive the monthly company newsletter,
“CommUnity”. Team spirit, initiative and “thinking outside the box” characterise
Unitymedia and are essential to playing an active role in shaping a dynamic market.
“ Assuming responsibility for establishing one of the world’s most modern networks is an
exciting job. The rapid development of broadband services in particular was a challenge
that made every technician’s heart beat a little faster.”
Ralf Peters has worked at Unitymedia since 1999. In his function as Engineer, Network
Architecture in Network Development, he is also responsible for the modernisation of
the cable networks.
People at Unitymedia know how to work hard, but this equally applies to having fun and
enjoying success: Unitymedia regularly invites employees to after-work parties or the
big “Sommerfest”,which is open to all employees, their partners and children. Corporate
Social Responsibility is a value shared by all people at Unitymedia. The “Aktiv vor Ort”
(“Active in your community”) initiative supports and sponsors charity projects in which
employees and their families are actively involved.

32
Financial / Financial Facts
Financial Facts
Unitymedia Cable again delivered double-digit top-line revenue and EBITDA growth in
2008, as the company continued to implement a proven strategy: to upsell higher tier
Triple Play services to its large basic cable subscriber base. As part of this strategy,
Unitymedia Cable delivered superior value to the customer, actively managed costs
and kept a disciplined approach to capital investment.
Unitymedia Cable delivered 15 % revenue and 19 % Adjusted EBITDA growth to €857
million and €395 million, respectively. With rigorous cost discipline embedded in the
Unitymedia culture, this has led to a 46 % EBITDA margin in 2008 and permitted another
step-increase in certain operating expenditures to accommodate the strong growth in
New Services. New Service RGUs, comprised of the Internet, Telephony and Digital TV
Pay offerings, increased 66 % year-over-year as customers trust more of their media and
communication needs to Unitymedia. In 2008 alone, 439,000 customers switched
to Digital TV, 319,000 subscribed to Internet and 188,000 converted to Unitymedia
Telephony. Along with growth in Triple Play services, Unitymedia Cable continued to
digitise its cable subscriber base to 27 % as of December 31, 2008, from analogue
television to the Digital TV Basic product. Digitisation is a prerequisite to upsell customers
into higher value pay TV content, positioning Unitymedia Cable to further capitalise on
the long-term growth opportunities of the underdeveloped German pay TV market.
Top-line Growth Through Triple Play
Unitymedia continues to deliver on its strategy of converting €10 ARPU customers to
€40 and higher ARPU customers over time. As a result, blended monthly ARPU across
all cable products was €12.77 in the year 2008, up 16 % from €11.03 in 2007.
Highlighting Unitymedia’s strategy for its cable footprint generally, Unity3play ARPU
including the average basic cable service therefore amounted to €40.61 in 2008.
Total Cable RGUs (in ´000) Cable Revenue (in €m)
6,180
857
6,000
5,498
5,704
4,619
6,000 800
760
554
800
4,930
4,762 636
536
4,500 4,500 600
486
600
3,000 3,000 400
400
1,500 1,561
1,500 200
107
200
45
942
568
104
117
136
2006 2007 2008 2006
2007
2008
Basic Cable Subscribers New Services Basic Cable Subscribers New Services Other
Regional Network Upgrades Followed by Demand-driven Capital Expenditure
Capital expenditure at Unitymedia is subject to rigorous investment return hurdles
and payback criteria. Excluding the acquisition of the Aachen and Wiesbaden networks,
capital expenditures for the cable segment increased from €172 million for the year
ended December 31, 2007, to €231 million for the year ended December 31, 2008,
which corresponds to 27 % of total revenue.
167

In fact, approximately 80 % of Unitymedia capital expenditure is entirely driven by
regional network upgrades or customer demand fully linked to secured revenues –
whether it be digital receivers, cable modems, in-home wiring upgrades or broadband
installations for new customers. The remaining 20 % is focused on fixed CAPEX to
continuously improve the network, information technology systems, as well as the
development of new products to drive top-line growth such as Video on Demand, or
next-generation broadband Internet speeds.
Adjusted Cable EBITDA (in €m) Cable CAPEX (in €m)
Strong Financial Partner
Financial / Financial Facts
% Margin % of Revenue
400
45 %
46 %
395
400 400
400
46 %
333
300
291
300 300
27 %
300
231
23 %
200 200 200
200
100 100 100 104
100
2006 2007 2008 2006
2007
2008
16 %
With its healthy balance sheet, solid capital structure and strong operational performance,
Unitymedia has established itself as a reliable financial partner for its customers,
employees, suppliers, shareholders and capital markets. It benefits significantly from the
stable, utility-like cash flows derived from the basic cable subscription base, which
provide protection against general market volatility.
The company’s substantial liquidity not only permitted the funding of an increased level of
customer acquisition and growth-related capital expenditure, but also provided the
opportunity for Unitymedia to further strengthen its capital structure by proactively
acquiring €326 million par value of its own Senior Secured Floating Rate Notes (FRNs)
during the course of 2007 and 2008.
As of December 31, 2008, Unitymedia Group had €215 million in cash, as well as access
to a €130 million Revolving Credit Facility, of which €100 million had been undrawn.
At year end 2008, Unitymedia´s consolidated leverage ratio was 3.5x – excluding the
repurchased FRNs – below most of its company peers in the European cable industry.
172
33

34 Financials / Financial Facts
Summary Segment Operating and Financial Data
(in ´000 unless otherwise stated) Dec. 31, 2006 Dec. 31, 2007 Dec. 31, 2008
Unitymedia Cable Segment
Homes Passed 8,584 8,643 8,685
Homes Upgraded 43 % 66 % 83 %
RGUs (1)
Basic Cable 4,930 4,762 4,619
New Services 568 942 1,561
Total RGUs 5,498 5,704 6,180
Basic Cable ARPU (€) (2) 8.21 9.19 9.81
Incremental New Service ARPU (€) (3) 0.77 1.84 2.95
Blended ARPU (€) 8.98 11.03 12.77
Basic Cable
Analogue 4,487 3,973 3,391
Digital 443 789 1,228
Total Basic Cable 4,930 4,762 4,619
Penetration
BCS in % of Homes Passed 57 % 55 % 53 %
Digital in % of BCS 9 % 17 % 27 %
Digital (w / Premiere) in % of BCS (4) N / A N / A 31 %
New Service RGUs
Digital TV Pay (5) 385 456 568
Retail Broadband Internet 80 199 377
Wholesale MMA Internet (6) 45 112 253
Telephony 58 175 363
Total New Service RGUs 568 942 1,561
RGUs per BCS sub 1.12 1.20 1.34
(1) Revenue generating units, or “RGUs”, relate to sources of revenue, which may not always be the same as subscriber numbers.
For example, one person may subscribe to two different services, thereby accounting for only one subscriber but for two RGUs.
(2) Calculated as the average ARPU of all analogue and digital BCS subscribers (excluding Digital TV Pay subscribers).
Includes incremental Primacom Aachen and Wiesbaden revenue as of September 1, 2008; 2008 BCS ARPU pro-forma for Primacom would be €9.88.
(3) Sum of retail Internet, wholesale MMA Internet, Telephony and Digital TV Pay revenue divided by the number of BCS RGUs in the same period.
(4) Includes cable-based Premiere customers in NRW / Hesse not subscribing to a separate Unitymedia digital package.
(5) Customers subscribing to one or more Digital TV Pay packages including second smartcards; excluding BCS customers who take Digital TV Basic only.
(6) Multimedia-Anschluss (MMA) wholesale Internet product for landlords, excluding units which upgrade to retail broadband Internet.

(in €‘000 unless otherwise stated) Dec. 31, 2006 Dec. 31, 2007 Dec. 31, 2008
Unitymedia Cable Segment
ARPU (€) (7)
Digital TV Pay 9.02 11.01 9.82
Retail Broadband Internet (8) 18.74 15.23 14.67
Wholesale MMA Internet 2.07 2.35 2.43
Telephony (8) 23.39 20.69 16.13
Broadband 2play (9) 42.13 35.92 30.80
Unity3play incl. BCS (10) N / A 45.11 40.61
Total cable revenue (in € m) 635.8 759.6 856.6
Adjusted total cable revenue (in € m) (11) 635.8 743.5 856.6
Adjusted EBITDA (in € m) (12) 291.3 332.8 394.9
CAPEX (in € m) (13) 103.9 171.7 231.5
Net debt (in € m) (14) 1,744.2 1,882.0 1,879.6
arena Segment
arenaSAT RGUs 323 334 191
arenaSAT ARPU (in €) (15) 17.59 17.13 18.67
(7) Calculated by dividing the relevant subscription revenues (excluding installation and carriage fees) for a period by the average number of relevant subscribers for
that period and the number of months for that period.
(8) In Q2/2008, the company changed the manner in which it allocates ARPU generated from Broadband 2play and Unity3play products. Prior to Q2/2008, a fixed
amount of ARPU was allocated to BCS digital (in Unity3play) and Telephony (together with telephone usage charges), with the remaining ARPU allocated to retail
Internet. Beginning in the second quarter of 2008, a fixed amount of ARPU was allocated to BCS digital (in Unity3play) and retail Internet customers acquired
after the first quarter of 2008, with the remaining ARPU (together with telephone usage charges) allocated to Telephony.
(9) Calculated as the sum of retail Internet and Telephony ARPU.
(10) Calculated as the sum of average Basic Cable ARPU and Broadband 2play ARPU (excluding additional Digital TV Pay ARPU).
(11) Excludes €16.1million non-recurring settlement of purchase price adjustment accrual release in Q2/2007.
(12) Earnings before interest, taxes, depreciation and amortisation adjusted by non-recurring items and non-cash share-based expenses.
(13) Capital expenditures consist of expenditures for property and equipment and intangibles (except for customer lists); this does not include the €49.1 million share
acquisition of the Primacom networks in Aachen and Wiesbaden in 2008.
(14) Net debt is a company measure and is the nominal value of bonds and bank liabilities less cash on hand. Net debt is presented exclusive of amortised
transaction costs and including repurchased but not retired debt securities and therefore differs from the lower amount shown in the EU-IFRS and IFRS financial
statements. Net debt includes €251.0 million par value of the NRW / Hesse Notes which have been repurchased by the company in 2008 but not retired, and
excludes cash at arena.
(15) Calculated by dividing arenaSAT satellite subscription sales excluding public viewing revenues for a period by the average number of total arenaSAT RGU for
that period and the number of months for that period.
Financials / Financial Facts 35

36 Financials / Financial Facts
Income Statement
(1)
Income statement Data: Unitymedia Cable (IFRS)
(in € million) Dec. 31, 2006 Dec. 31, 2007 Dec. 31, 2008
Revenue 596.3 706.4 809.5
Basic Cable services 486.4 535.8 553.5
Digital TV Pay 25.3 54.5 60.0
Internet 11.6 25.9 55.1
Telephony 8.5 26.8 51.4
Carriage fees 53.0 54.4 81.2
Installation fees 11.5 9.0 8.2
Own work capitalised 9.3 14.9 18.1
Other income 30.1 38.3 29.0
Total revenues 635.8 759.6 856.6
Cost of materials and services ( 119.5) ( 127.6) (134.6)
Personnel expenses ( 88.7) (97.3) (103.4)
Other expenses (141.9) (195.9) (222.8)
EBITDA 285.7 338.8 395.7
Depreciation and amortisation expenses ( 225.3) ( 223.2) (250.5)
Financial income 8.7 10.5 70.0
Financial expenses (174.9) (162.5) (153.4)
Income taxes 119.4 29.2 (8.0)
Results from discontinued operations (2.1) – –
Profit / (loss) for the period 11.6 (7.2) 53.9
Profit attributable to minority interests (5.5) – –
Reportable segment profit / (loss) 6.0 (7.2) 53.9
Income Statement Data (IFRS)
(in € million) Dec. 31, 2006 Dec. 31, 2007 Dec. 31, 2008
UM GmbH (1) UM GmbH UM Cable arena UM GmbH
Revenue 665.6 999.0 809.5 352.4 1.161.9
Own work capitalized 10.8 14.9 18.1 – 18.1
Other income 24.1 44.1 29.0 13.3 41.2
Total revenues 700.5 1,058.0 856.6 365.8 1.221.3
Cost of materials and services (135.3) (140.1) (134.6) (11.0) (145.6)
Personnel expenses (91.1) (104.1) (103.4) (1.3) (104.7)
Other expenses (365.3) (522.4) (222.8) (306.0) (527.8)
EBITDA 108.8 291.4 395.7 47.4 443.1
Depreciation and amortization expenses (227.9) (230.7) (250.5) (5.1) (255.6)
Financial income 10.6 16.3 70.0 5.9 71.3
Financial expenses (175.4) (163.2) (153.4) 0.0 (153.4)
Income taxes 119.4 37.4 (8.0) (11.3) (19.3)
Results from discontinued operations (2.1) – – – –
Profit / (loss) for the period (166.6) (48.8) 53.9 36.8 86.1
Profit attributable to minority interests (5.5) – – – –
Reportable segment profit / (loss) (172.2) (48.8) 53.9 36.8 86.1
Unitymedia excluding Tele Columbus out-of-region assets and including in-region Unitymedia Services. Tele Columbus out-of-region shown as discontinued operations in 2006.

Cash Flow Statement Data – Unitymedia Group (IFRS Consolidated)
Financials / Financial Facts
37
(in € million) Dec. 31, 2006 Dec. 31, 2007 Dec. 31, 2008
Cash flow from operating activities
Earnings before interest and taxes (EBIT) (119.1) 60.7 187.5
Depreciation and amortisation expenses 227.9 230.7 255.6
Minority interests (5.5) 0 0
Other non-cash income (–) / expenses (+) 5.6 (104.5) (108.2)
Losses (+) / profits (–) from disposals of property, plant and equipment (2.5) 0.1 1.8
Gains from disposals of discontinued operations
Increase (–) / decrease (+) of inventories, trade receivables and other assets
(9.7) 0 0
not related to investing or financing activities
Increase (+) / decrease (–) of provisions, trade payables and other liabilities
(49.1)
1.3
25.1
not related to investing or financing activities
116.1
45.8
(20.0)
Income taxes paid (12.2) (5.7) (24.8)
Financial income received 2.1 8.1 6.7
Financial expenses paid (116.0) (155.5) (144.0)
Proceeds from disposal of available-for-sale securities 0 0 244.0
Cash flow from operating activities 37.5 81.0 423.6
Cash flow from investing activities
Proceeds from disposal of property, plant and equipment 12.5 0.6 0
Proceeds from disposal of disposal groups 153.5 0 0
Proceeds from disposal of available-for-sale securities 0 0 42.1
Investments in tangible fixed assets (121.0) (150.2) (186.7)
Investments in intangible fixed assets (15.8) (17.3) (39.7)
Investments in the acquisition of subsidiaries 0 0 (49.1)
Cash flow from investing activities 29.2 (166.9) (233.4)
Cash flow from financing activities
Repayment of finance lease obligations 0 (1.6) (1.2)
Cash paid into capital reserves 0 0.2 0
Proceeds from loans, bonds, short- or long-term borrowings 1,505.0 0 0
Revolver (+) / Revolver repayment (–) 0 0 30.0
Cash repayments of loans or short- or long-term borrowings (1,156.0) (130.0) (231.2)
Transaction costs related to financing activities (16.3) 0 0
Cash flow from financing activities 332.7 (131.4) ( 202.4)
Cash and cash equivalents at the end of the period
Change in cash and cash equivalents from cash-relevant transactions 399.4 (217.3) (12.1)
Cash and cash equivalents at the beginning of the period 44.9 444.4 227.1
Cash and cash equivalents at the end of the period 444.4 227.1 214.9

38 Financials / Financial Facts
Balance sheet – Unitymedia GmbH (IFRS Consolidated)
Assets
(in € million) Dec. 31, 2006 Dec. 31, 2007 Dec. 31, 2008
Current assets
Cash and cash equivalents 444.4 227.1 214.9
Available for sale securities 0 211.6 0
Trade accounts receivable 49.6 69.6 77.8
Other receivables 20.2 29.8 21.6
Current tax receivables 1.4 5.5 9.5
Inventories 11.5 8.2 11.0
Prepaid expenses and accrued revenue 16.3 15.5 9.2
Total-current assets 543.4 567.3 344.0
Non current assets
Property, plant and equipment 844.3 862.5 905.5
Goodwill and other intangible assets 1,346.0 1,269.5 1,264.4
Derivative assets 8.5 15.7 0.9
Other financial assets 2.7 1.8 3.7
Prepaid expenses 31.7 21.9 18.3
Deferred tax assets 31.9 35.4 24.5
Total non-current assets 2,265.2 2,207.0 2,217.2
Total assets 2,808.5 2,774.3 2,561.2

Liabilities
Financials / Financial Facts
39
(in € million) Dec. 31, 2006 Dec. 31, 2007 Dec. 31, 2008
Current liabilities
Bonds and bank liabilities 110.8 45.1 72.6
Trade accounts payable 115.4 152.0 179.1
Other liabilities 52.4 81.9 51.1
Current tax liabilities 27.1 36.7 31.6
Deferred income 86.3 185.0 127.8
Short-term provisions 36.3 35.8 36.7
Total current liabilities 428.2 536.4 498.9
Non-current liabilities
Bonds and bank liabilities 1,966.6 1,887.4 1,649.8
Pensions and other long-term employee benefits 7.8 8.5 8.5
Derivative liabilities 18.6 22.6 26.6
Other financial liabilities 9.3 5.6 10.6
Deferred income 0 51.3 0
Deferred tax liabilities 91.4 48.0 44.4
Total non-current liabilities 2,093.8 2,023.4 1,739.9
Shareholders’ equity
Subscribed capital 12.7 12.7 12.7
Capital reserves 423.2 425.3 427.1
Unrealised earnings (1.2) (26.5) (6.5)
Retained earnings (148.2) (196.9) (110.9)
Total shareholders’ equity 286.5 214.5 322.4
Total liabilities and equity 2,808.5 2,774.3 2,561.2

Contact
Unitymedia Group
Head Office
Aachener Strasse 746-750
D-50933 Cologne, Germany
Phone: +49 (0) 221 / 37792-0
www.unitymedia.de
Corporate Communications
Katrin Köster
Company Spokesperson
Phone: +49 (0) 221 / 37792-197
presse@unitymedia.de
Investor Relations
Mario Wilhelm
Director Investor Relations
Phone: +49 (0) 221 / 37792-196
investor.relations@unitymedia.de
Imprint
Editorial concept
Susbauer PR
Stefan Susbauer
Saskia Stammwitz
Design concept
MDK Visuelle Kommunikation, Köln
Photography
Rainer Rehfeld
Nils Hendrik Müller
David Klammer
Susbauer PR
Unitymedia Corporate Communications

www.unitymedia.de