Freenet Ag · XETR:FNTN

Freenet — Q3 2015 Earnings Presentation

22 slides from Freenet's earnings presentation, Nov 5, 2015

  1. Slide 1: Management presentation Q3 2015 results

    Management presentation Q3 2015 results Christoph Vilanek, CEO and Joachim Preisig, CFO November 5, 2015| Analyst and Investor conference call 1 | Management presentation Q3 2015 results | November 5, 2015

  2. Slide 2: Cautionary statement

    Cautionary statement This presentation contains forward-looking statements which involve risks and uncertainties. The actual performance, results and timing of the business of freenet AG could differ materially from the expectations regarding performance, results and timing expressed in this present

  3. Slide 3: freenet in Q3 2015 continuously successful

    freenet in Q3 2015 continuously successful Key performance indicators demonstrate sustainable level of profitability  Increase of Group revenue, based on strong customer ownership, improved postpaid ARPU and growing Digital Lifestyle revenue  Customer Ownership growing + 3.4%, postpaid customer ba

  4. Slide 4: Strong performance at a glance

    Strong performance at a glance [in EUR million] Group revenue Gross profit Group EBITDA Free cash flow +3.7% +1.5% +1.1% +1.9% 790.1 197.1 81.1 762.1 194.2 79.6 96.3 97.3 Q3 2014 Q3 2015 Q3 2014 Q3 2015 Q3 2014 Q3 2015 Q3 2014 Q3 2015 Group revenue Gross profit increased Group EBITDA 1.0 m€ Free cas

  5. Slide 5: Strategic direction is bearing fruit and yet needs more innovation

    Strategic direction is bearing fruit and yet needs more innovation Q1 – Q3 2015 Q4 2015  Strong net add development across all channels, focus  Fully integrated omni-channel for mobilcom-debitel live now; renewals in captive channels successfully implemented all combinations of research, buying an

  6. Slide 6: Customer Ownership improved once again (+307,000 yoy)

    Customer Ownership improved once again (+307,000 yoy) Mainly driven by further growth of the postpaid customer base (+263,000 yoy) [in million] 9.21 9.11 6.23 6.16 8.90 8.84 5.90 5.97 2.94 2.93 2.94 2.97  30.09.2015  30.06.2015  30.09.2014  30.06.2014 Customer Ownership Postpaid No frills  Impr

  7. Slide 7: ARPU reflects acquisition of high-value customers

    ARPU reflects acquisition of high-value customers Postpaid ARPU with impressive turnaround [EUR/month] -1.20 Q3 2014 -1.00 -0.90 Q3 2015 -0.50 -0.10 22.5 22.6 -0.10 +0.20 22.4 21.9 21.5 21.7 21.6 21.5 21.7 2.9 2.6 3.1 3.2 21.4 21.2 21.1 21.2 21.1 Q1 2013 to Q1 2014 Q2 2013 to Q2 2014 Q3 2013 to Q3 2

  8. Slide 8: The Greek testimonial Costa hit the ground in Q3 2015

    The Greek testimonial Costa hit the ground in Q3 2015 New marketing campaign from the end of June to the end of August with our Greek testimonial Costa, playing with the media attention on Greece during the first 8 months of 2015 Straight messages that mobilcom-debitel  delivers good value for mone

  9. Slide 9: Wide range of products to attract customers to shop and online

    Wide range of products to attract customers to shop and online Products and offers of Costa campaign:  Samsung Galaxy Grand Prime (149 euros)  Smart Surf, E-Plus network, 1 GB LTE, 50 Min, 50 SMS (9.99 euros/month)  Bowers & Wilkins P3 Headset (99 euros)  DLS options: Juke, maxdome, Bild + exten

  10. Slide 10: "Costa fast gar nix" became a winged word in PR, press and web

    „Costa fast gar nix“ became a winged word in PR, press and web 10 | Management presentation Q3 2015 results | November 5, 2015

  11. Slide 11: Success of the campaign well measurable…

    Success of the campaign well measurable…  More than 75,000 Samsung Galaxy Grand Prime were sold to end consumer  Units sold of selected accessory items quadrupled  > 80% prompted brand awareness – highest value ever since introduction of mobilcom-debitel  Almost 50% know the claim Costa was real

  12. Slide 12: ... and therefore Costa comes back as Santa Claus

    ... and therefore Costa comes back as Santa Claus Starting on 2nd November 12 | Management presentation Q3 2015 results | November 5, 2015

  13. Slide 13: Financial statements: Income statement

    Financial statements Income statement [in EUR million] Q1 - Q3 2015 Q1 - Q3 2014 Q3 2015 Q3 2014 Revenue 2,291.1 2,206.9 790.1 762.1 Gross profit 574.9 567.3 197.1 194.2 EBITDA 272.4 269.3 97.3 96.3 Depreciation and amortisation -52.6 -47.7 -18.4 -15.3 EBIT 219.9 221.6 79.0 80.9 Interest result -29.

  14. Slide 14: Financial statements: Balance sheet

    Financial statements Balance sheet [in EUR million] Assets Shareholders‘ equity and liabilities 30.9.2015 30.6.2015 30.9.2015 30.6.2015 Intangible Shareholders' 373.3 385.7 assets equity 1,280.1 1,217.3 Goodwill Borrowings 1,153.3 1,153.3 Trade accounts receivable 633.0 624.4 Trade accounts 476.9 pa

  15. Slide 15: Financial statements: Cash flow

    Financial statements Cash flow [in EUR million] Q1 - Q3 2015 Q1 - Q3 2014 Q3 2015 Q3 2014 Cash flow from operating activities 237.1 229.6 86.0 87.9 Cash flow from investing activities -20.1 -61.6 -5.7 -5.3 thereof net capex -19.7 -18.7 -4.8 -8.3 Cash flow from financing activities -125.3 -217.3 -0.7

  16. Slide 16: Detailed Bridge from EBITDA to free cash flow

    Detailed Bridge from EBITDA to free cash flow Q1 – Q3 2015 [in EUR million] 2.8 -37.8 -19.7 -0.3 272.4 217.4 EBITDA Change in net Tax payments Capex Other Free cash flow working capital FY 2014 365.6 - 29.0 - 40.4 - 27.9 - 1.7 266.6 FY 2015e 370 - 25 - 40 - 25 0 280 FY 2016e 375 - 30 - 35 - 25 0 285

  17. Slide 17: Two-year guidance

    Two-year guidance Guidance for 2015 and 2016 financial years confirmed Customer Postpaid Group Group Free cash flow Dividend ownership ARPU revenue EBITDA (FCF)1 payout Guidance 50-75% of 375 m€ 285 m€ 2016 FCF Guidance 50-75% of 370 m€ 280 m€ 2015 FCF Results + 162,000 21.4 € 3,040.6 m€ 365.6 m€ 26

  18. Slide 18: Key achievements in Q3 2015

    Key achievements in Q3 2015  Further increase of Customer Ownership mainly driven by strong growth of valuable postpaid customers  Postpaid ARPU 0.5 euros higher than in previous quarter and 0.2 euros higher yoy  Increasing revenue due to postpaid business and digital lifestyle revenue  EBITDA a

  19. Slide 19: freenet Group management

    freenet Group management We take time for your questions Christoph Vilanek, CEO Joachim Preisig, CFO  CEO of freenet AG since  CFO of freenet AG since 2009 2010  Management positions at  CFO of debitel AG since debitel AG since 2005 2006  Consultant for  CFO of T-Mobile/ Head of telecommunicat

  20. Slide 20: Thank you.

    Thank you. Hollerstrasse 126 Investor Relations 24782 Büdelsdorf +49 (0) 40 513 06 778 www.freenet-group.de [email protected] 20 | Management presentation Q3 2015 results | November 5, 2015

  21. Slide 21: Shareholder structure

    Shareholder structure Major shareholders of freenet AG As of 21 October 2015 79.82% Other shareholders/freefloat** Deutsche Asset & Wealth Management 5.23% Investment GmbH* 5.16% Allianz Global Investors GmbH * 3.70% The Capital Group Companies, Inc.* 3.08% 3.01% BlackRock, Inc.* BNP Paribas Investm

  22. Slide 22: Optimising the financing profile to further reduce refinancing risks

    Optimising the financing profile to further reduce refinancing risks [in EUR million] Instruments and maturity profile New Issuance of Promissory Notes in May 2015 400  Taking up of promissory note loan in May 2015 300  Investment Grade Structure and Pricing  Amount: EUR 100 million, due in 2020

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