United Internet Ag · XETR:UTDI
United Internet — H1 2005 Earnings Presentation
41 slides from United Internet's earnings presentation, August 2005
Slide 1: United Internet 1st Half-Year 2005
United Internet 1st Half-Year 2005
Slide 2: Contents
Contents 1. Company Development 2. Results Appendix 3. United Internet Companies 4. Results acc. to HGB 2
Slide 3: Company Development
1. Company Development 3
Slide 4: 3.94 million customer contracts in 3 product lines
Strong growth in first half of 2005. 3.94 million customer contracts in 3 product lines. (in million customer contracts) 3.94 3.15 2.40 1.84 30.06.2002 30.06.2003 30.06.2004 30.06.2005 4
Slide 5: 1st product line: Information Management
1st product line: Information Management (in million customer contracts) - professional e-mail, messaging, tasks, calendar, address management, 0.43 0700 numbers, team services 0.33 0.19 0.07 30.06.2002 30.06.2003 30.06.2004 30.06.2005 5
Slide 6: Market standing: Information Management
Market standing: Information Management Market leader in Germany - United Internet approx. 430,000 customer contracts - Takeover WEB.DE approx. 450,000 customer contracts approx. 880,000 customer contracts Further growth from ongoing conversion of over 45 million free accounts accessible via the
Slide 7: 2nd product line: Webhosting
2nd product line: Webhosting (in million customer contracts) - home pages, domains, e-shops, dedicated servers 1.93 1.66 - active in Germany, UK, USA, 1.41 France and Austria 1.27 - 490,000 foreign contracts (June 30, 2004: 280,000) 30.06.2002 30.06.2003 30.06.2004 30.06.2005 7
Slide 8: In webhosting we are market leader in Germany
In webhosting we are market leader in Germany and the fastest growing company Hosted websites Growth June 2004 – June 2005 (in 000)* (in 000)* 1,945 130 1,170 97 24 171 117 16 10 98 86 -9 United Freenet/ Komplex/ Deutsche PIPEX/ Domain United Komplex/ PIPEX/ Domain Deutsche Freenet/ Internet Strato
Slide 9: In the UK we are the largest webhoster
In the UK we are the largest webhoster and the fastest growing company Hosted websites Growth June 2004 – June 2005 (in 000)* (in 000)* 286 266 137 196 85 75 109 98 50 66 16 -28 United Fast PIPEX/ UK2 iomart Energis United PIPEX/ iomart Fast UK2 Energis Internet hosts Host .net Internet Host hosts .
Slide 10: In the USA we are already one of the top webhosters
In the USA we are already one of the top 8 webhosters after just one year. We are also one of the fastest growing companies Hosted websites Growth June 2004 – June 2005 (in 000)* (in 000)* 719 628 589 488 490 389 343 258 190 179 176 68 GoDaddy The EV1 Yahoo Dotster United GoDaddy The Yahoo Dotster U
Slide 11: Globally, market leader in shared hosting
Viewed globally, we are the clear market leader in shared hosting ... Hosted websites Growth June 2004 – June 2005 (in 000)* (in 000)* 2,490 488 443 389 1,171 719 190 628 596 490 75 -8 United Freenet/ GoDaddy The EV1 Yahoo GoDaddy United The Yahoo EV1 Freenet/ Internet Strato Planet Servers Internet
Slide 12: ... and dedicated hosting
... and dedicated hosting. Hosted servers Growth July 2004 – July 2005 (in 000)* (in 000) 33.4 7.1 5.6 16.1 11.4 3.9 7.7 7.2 5.8 1.5 0.5 0.4 United EV1 The Rack- Freenet/ PIPEX/ United The Freenet/ Rack- PIPEX/ EV1 Internet Servers Planet space Strato Host Internet Planet Strato space Host Servers E
Slide 13: 3rd product line: Internet Access
3rd product line: Internet Access (in million customer contracts) 1.58 DSL Narrowband 1.16 1.34* - strong growth in DSL contracts: 0.79 0.83 1st half-year 2005: + 290,000 versus 1st half-year 2004: + 175,000 0.50 0.47 - positive response to DSL telephony: 0.18 our customers currently phone for over
Slide 14: In DSL we are No. 2 in Germany
In DSL we are No. 2 in Germany DSL customer contracts as of 30.06.2005 (in 000) 3,710 1,340 880 710 525 344 T-Online United AOL* Arcor* Freenet / Hansenet Internet Strato * Source: company figures; AOL and Arcor: own estimates 14
Slide 15: DSL growth factors
DSL growth factors Customer growth results from new features ... - DSL telephony with ISDN functions, such as conferences, switching, callback if “busy” - Video telephony from PC to PC - Free network answering machine - Surfing at speeds of up to 6,016 kbits/s ... from our new resale business mo
Slide 16: Outlook
Outlook Our business is growing fast. For 2005 we expect strong improvements in our key performance indicators: - approx. 4.8m customer contracts (prior-year: 3.5m) of which approx. 1.65m DSL contracts (prior-year: 1.05m) with approx. 0.90m DSL connections (prior-year: 0.20m) - approx. € 740m sa
Slide 17: Results
2. Results 17
Slide 18: Consolidated sales
Consolidated sales (IFRS in € million) +40.5 % 335.4 + 47.9 % in quarter comparison: 238.8 245.0 Q2 Q2 2004 2005 167.1 Product 82.8 131.3 Outsourcing 21.1 21.4 Product Online Marketing 16.1 24.8 44.6 Outsourcing 43.7 Headquarters 0 0 Online Marketing 45.8 Total 120.0 177.5 28.0 Jan. – June 2004 Jan.
Slide 19: Consolidated EBITDA
Consolidated EBITDA (IFRS in € million) +0.7 % 55.2 55.6 -12.8 % in quarter comparison: Q2 Q2 2004 2005 48.0 Product 27.3 21.8 51.8 Outsourcing 1.8 2.4 Product Online Marketing 1.1 1.7 Outsourcing Headquarters -1.3 -0.7 Online Marketing 6.3 5.2 Total 28.9 25.2 Headquarters 1.4 3.1 -3.2 -1.8 Jan. – J
Slide 20: Consolidated EBT
Consolidated EBT (IFRS in € million) +23.2 % 45.7 + 2.0 % in quarter comparison: 37.1 Q2 Q2 2004 2005 Product 21.5 18.2 41.0 40.2 Outsourcing 0.0 0.7 Product Online Marketing 0.1 1.7 Outsourcing Headquarters -1.8 -0.4 Online Marketing 2.9 3.1 Total 19.8 20.2 Headquarters 1.6 -0.8 -1.3 -3.9 Jan. – Ju
Slide 21: Consolidated income statement acc. IFRS
Consolidated income statement acc. IFRS Jan.–June Jan.–June 2004 2005 (in €k) (in €k) Sales 238,791 100.0% 335,379 100.0% Cost of sales -128,204 -53.7% -193,414 -57.7% Gross profit 110,587 46.3% 141,965 42.3% Selling expenses -44,073 -18.5% -74,787 -22.3% General administrative expenses -21,429 -8.9
Slide 22: Consolidated balance sheet acc. to IFRS
Consolidated balance sheet acc. to IFRS ASSETS 31.12.04 30.06.05 LIABILITIES AND EQUITY 31.12.04 30.06.05 (in €k) (in €k) (in €k) (in €k) Short-term assets Current Liabilities Cash and cash equivalents 74,682 88,022 Short-term liabilities Accounts receivable and other assets 59,222 58,295 Accounts p
Slide 23: Selected balance sheet figures
Selected balance sheet figures United Internet Group 31.12.2004 30.06.2005 Long-term financial assets € 36.7 m € 41.5 m of which goodwill € 25.6 m € 31.0 m 0.1 -times EBITDA 2004 Product segment € 8.0 m € 8.0 m 0.1 -times EBT 2004 (GMX, 1&1, S+P) 0.3 -times EBITDA 2004 Outsourcing segment € 0.5 m €
Slide 24: Consolidated cash flow
Consolidated cash flow Jan.-June Jan.-June 2004 2005 (in €k) (in €k) Cash flowfrom operating activities Net income 19,443 26,028 Adjustments to reconcile net income to net cash Depreciation 11,828 10,935 Goodwill amortization 6,571 0 Compensation expenses from employee stock option plans 845 897 Und
Slide 25: Consolidated cash flow (contd.)
Consolidated cash flow (contd.) Jan.-June Jan.-June 2004 2005 (in €k) (in €k) Cash flow from investing activities Capital expenditure for intangible assets and property, plant and equipment -11,584 -13,312 Repayments/payments of loans granted 41 -83 Disposal of assets 116 110 Acquisition costs, net
Slide 26: Our success story continues!
Our success story continues! 26
Slide 27: Appendix: United Internet Companies
Appendix: United Internet Companies 27
Slide 28: 8 brands in 3 business segments
8 brands in 3 business segments Product Internet Users ISPs Outsourcing Software Vendors Online Marketing Advertisers 28
Slide 29: GMX
Pioneer and market leader for provider- independent e-mail and messaging solutions for private users. Over 23 million accounts, with an average of 16,500 new registrations per day. In addition to internet access, since October 2004 also own cheap DSL connection and low-price DSL telephony. L
Slide 30: Webhosting
Webhosting Market leader in hosting business in Germany and in UK. Also active in USA, France and Austria since 2004. Value-added services for discerning private users and SoHos. - Webhosting - Internet shops - Personal Information Management Fast expansion of international business: - 490,000
Slide 31: DSL
DSL Number 2 on German DSL market All-in-one package (1&1 DSL Plus) with wide range of additional tools, e.g. Profi Webspace, .de domain, Microsoft Outlook, hotspot usage, online storage ... DSL telephony: “Cheaper and better than ISDN” - Up to 4 calls simultaneously - Four additional local nu
Slide 32: High-end brand with tailored company solutions
High-end brand with tailored company solutions. - multi-access DSL connections - DSL telephony for extension line systems - extensive online office packages with - DSL access and DSL telephony - high-performance home page - MS Exchange accounts - MS Sharepoint (team services) - online shops - root
Slide 33: InterNetX
Value-added internet services as white label products for small ISPs and multimedia agencies. Over 11,500 resellers for domains, shared and dedicated hosting, security solutions etc. InterNetX administers over 1 million domains and 500 servers for affiliated resellers. Since early 2005, we h
Slide 34: twenty4help
CRM service provider for some 50 major clients. In its Vendor Services business, twenty4help offers a complete outsourcing CRM service, from product advice to technical support to guarantee and repair management. In its Corporate Services business, twenty4help offers user help desks (support f
Slide 35: AdLINK
AdLINK runs a European advertising network with major-name websites, such as MTV, ADAC or expedia.de. The affiliated websites are marketed by AdLINK to over 2,000 national and international advertising clients. The network generates an average of 5.1 billion page impressions per month. AdLIN
Slide 36: Sedo
Sedo operates a trading platform for over 2 million (“second-hand”) internet domains. 300,000 members world-wide buy and sell domains here. In its dominant business “domain parking”, sedo markets selected domains to advertisers on behalf of the domain’s owner. Focus 2005: expansion of “parki
Slide 37: affilinet
affilinet operates an affiliate network. The platform provides a market place for suppliers of affiliate programs and website operators (= affiliates). 3 billion page impressions are generated monthly via the network. affilinet organizes the marketing, administration and billing management of
Slide 38: Appendix: Results acc. to HGB
Appendix: Results acc. to HGB 38
Slide 39: Income statement acc. to HGB for holding company
Income statement acc. to HGB for holding company Jan.-June Jan.-June 2004 2005 (in €k) (in €k) Net sales 1,447 2,837 Other operating income 58 25,652 Cost of materials Cost of purchased services -1,196 -2,545 Personnel expenses a. Wages and salaries -633 -807 b. Social security contributions -58 -62
Slide 40: Balance sheet acc. to HGB for holding company
Balance sheet acc. to HGB for holding company ASSETS 31.12.04 30.06.05 EQUITY AND LIABILITIES 31.12.04 31.06.05 (in €k) (in €k) (in €k) (in €k) Equity Fixed assets Capital stock 58,043 58,128 Intangible assets Capital reserves 41,257 41,748 Concessions, industrial and similar rights and assets Reven
Slide 41: Selected balance sheet figures
Selected balance sheet figures United Internet AG 31.12.2004 30.06.2005 Financial assets € 117.9 m € 121.7 m 0.7 -times EBITDA 2004 Product segment € 68.4 m € 68.4 m 0.9 -times EBT 2004 (GMX, 1&1, S+P) 1.5 -times EBITDA 2004 Outsourcing segment € 11.3 m € 18.7 m 3.5 -times EBT 2004 (twenty4help, Int