United Internet Ag · XETR:UTDI

United Internet — Shareholder Meeting (May 2017)

40 slides from United Internet's shareholder meeting presentation, May 18, 2017

  1. Slide 1: Annual General Meeting

    UNITED INTERNET AG Annual General Meeting Alte Oper, Frankfurt am Main May 18, 2017 1 Annual General Meeting 2017 Frankfurt am Main, May 18, 2017

  2. Slide 2: Agenda

    AGENDA Ralph Dommermuth Company development 2016 Outlook Strategic combination with Drillisch Frank Krause Results for fiscal year 2016 / Q1 2017 Share & dividend Agenda 2 Annual General Meeting 2017 Frankfurt am Main, May 18, 2017

  3. Slide 3: Corporate Development in 2016

    CORPORATE DEVELOPMENT IN 2016 3 Annual General Meeting 2017 Frankfurt am Main, May 18, 2017

  4. Slide 4: Highlights of Fiscal Year 2016

    HIGHLIGHTS OF FISCAL YEAR 2016  1 million additional customer contracts to 16.97 million  Strong growth in sales and earnings 2015* 2016 Change Sales € 3.716 billion € 3.949 billion + 6.3% EBITDA € 757.2 million € 840.6 million + 11.0% EBIT € 541.7 million € 647.2 million + 19.5%  EPS, operative

  5. Slide 5: Two Segments: Access & Applications

    TWO SEGMENTS: ACCESS & APPLICATIONS ACCESS APPLICATIONS Motivated team  8,100 employees, of which approx. 2,600 in product management, development and data centers Networks Content Sales strength  Approx. 3.2 million contracts p. a.  50,000 registrations for free services every day Operational ex

  6. Slide 6: Brands & Investments

    BRANDS & INVESTMENTS (as of: December 31, 2016) Consumer Access * Business Consumer Applications Business Partner companies 25.10% 30.20% 27.28% 25.01% 30.34% Listed i n v e s t m en t s 20.11% 25.11% 8.31% 10.46% * Rebranding of Versatel GmbH effective from July 1, 2016 6 Annual General Meeting 201

  7. Slide 7: "Access" in Fiscal Year 2016

    “ACCESS” IN FISCAL YEAR 2016  CONSUMER ACCESS  CONSUMER APPLICATIONS  BUSINESS ACCESS  BUSINESS APPLICATIONS 7 Annual General Meeting 2017 Frankfurt am Main, May 18, 2017

  8. Slide 8: Business Access

    BUSINESS ACCESS  Second largest German fiber-optic network  Project business and plug-and-play solutions (since July 1, 2016) for medium-sized companies Commercial sector FTTB  Fiber-optic network with a length of 41,644 km (prior year: 40,825 km) Public sector  In 250 German cities, including 1

  9. Slide 9: Consumer Access

    CONSUMER ACCESS  Largest alternative German DSL provider  “Inventor” of All-Net-Flat tariff Homes  Use of DTAG’s VDSL/vectoring VDSL/ vectoring connections (successive DTAG expansion of Layer 2 infrastructure)  FTTH connections of well-known city carriers FTTH City carriers 9 Annual General Meet

  10. Slide 10: Consumer Access: Customer Contracts

    CONSUMER ACCESS: CUSTOMER CONTRACTS (in million) Mobile internet DSL complete packages (ULL) T-DSL / R-DSL 9.00 8.72  8.72 million customer contracts (+ 920,000), 7.80 +0.92 8.00 7.00 of which 4.31 6.00 3.48  4.31 million mobile internet contracts 5.00 4.00 (+ 830,000) 3.00 4.08 4.23  4.23 millio

  11. Slide 11: Access: Sales

    ACCESS: SALES (acc. to IFRS in € million) 3,000 2,917.2 2,742.6 174.6 (+6.4%) 2,500 2,000  €2.917 billion sales (+ 6.4%) 1,500 1,000 500 0 2015 2016 11 Annual General Meeting 2017 Frankfurt am Main, May 18, 2017

  12. Slide 12: Access: EBITDA

    ACCESS: EBITDA (acc. to IFRS in € million) 550 525.6 492.1 +33.5 500 (+6.8%) 450 400  €525.6 million EBITDA (+ 6.8 %) 350 300  18.0 % EBITDA margin (prior year: 17.9 %) 250 200 150 100 50 0 2015 2016 12 Annual General Meeting 2017 Frankfurt am Main, May 18, 2017

  13. Slide 13: Access: EBIT

    ACCESS: EBIT (acc. to IFRS in € million) 400 389.9 +53.5 350 336.4 (+15.9%) 300  €389.9 million EBIT (+ 15.9 %) 250 200  13.4 % EBIT margin (prior year: 12.3 %) 150 100 50 0 2015 2016 13 Annual General Meeting 2017 Frankfurt am Main, May 18, 2017

  14. Slide 14: "Applications" in Fiscal Year 2016

    “APPLICATIONS” IN FISCAL YEAR 2016  CONSUMER ACCESS  CONSUMER APPLICATIONS  BUSINESS ACCESS  BUSINESS APPLICATIONS 14 Annual General Meeting 2017 Frankfurt am Main, May 18, 2017

  15. Slide 15: Consumer Applications: From E-Mail Service to Command Center

    CONSUMER APPLICATIONS: FROM E-MAIL SERVICE TO COMMAND CENTER FOR COMMUNICATION, INFORMATION AND IDENTITY MANAGEMENT Communication Online office and organization Texts, spreadsheets, E-mail, calendar, presentations contacts, SMS, fax Cloud storage De-Mail For Photos, videos, Legally secure communicat

  16. Slide 16: Consumer Applications: Customer Contracts

    CONSUMER APPLICATIONS: CUSTOMER CONTRACTS (in million) Accounts with Value-added subscription Accounts with Premium Mail subscription  2.20 million fee-based products (+ 20,000) 2.50 2.18 2.20  34.29 million free accounts (+ 1,140,000), of which +0.02 2.00 0.41 0.48  18.2 million with mobile usag

  17. Slide 17: Business Applications: From Webhoster to E-Business Solutions Provider

    BUSINESS APPLICATIONS: FROM WEBHOSTER TO E-BUSINESS SOLUTIONS PROVIDER E-mail Website Sector Business marketing design Mobile apps content apps Local Display E-payment E-shops SEO tools listings advertisement solutions 17 Annual General Meeting 2017 Frankfurt am Main, May 18, 2017

  18. Slide 18: Business Applications: Customer Contracts

    BUSINESS APPLICATIONS: CUSTOMER CONTRACTS (in million) non-domestic domestic 7.00 5.99 6.05 6.00 +0.06  6.05 million customer contracts (+ 60,000) 5.00 4.00 3.64 3.71 3.00 2.00 1.00 2.35 2.34 0.00 31.12.2015 31.12.2016 18 Annual General Meeting 2017 Frankfurt am Main, May 18, 2017

  19. Slide 19: Applications: Sales

    APPLICATIONS: SALES (acc. to IFRS in € millions) 1,100 1,070.7 1,001.2 +69.5 1,000 (+6.9%) 900 800  € 1.071 billion sales 700 600 (+ 6.9 %; adjusted for currency-effects: + 8.8 %*) 500 400  Focus on high-quality customers 300  Expansion of business with existing customers 200 100  Good monetizat

  20. Slide 20: Applications: EBITDA

    APPLICATIONS: EBITDA (acc. to IFRS in € million) 350 335.0 +53.1 300 281.9 (+18.8%) 250  € 335.0 million EBITDA 200 (+ 18.8 %; currency-adjusted: + 21.0 %*) 150  31.3 % EBITDA margin (prior year: 28.2 %) 100 50 0 2015 2016 * Currency-adjusted for exchange rate fluctuations, in particular of the Br

  21. Slide 21: Applications: EBIT

    APPLICATIONS: EBIT (acc. to IFRS in € million) 300 278.3 +55.8 250 (+25.1%) 222.5 200  € 278.3 million EBIT (+ 25.1 %) 150  26.0 % EBIT margin (prior year: 22.2 %) 100 50 0 2015 2016 21 Annual General Meeting 2017 Frankfurt am Main, May 18, 2017

  22. Slide 22: Outlook

    OUTLOOK 22 Annual General Meeting 2017 Frankfurt am Main, May 18, 2017

  23. Slide 23: 2017 Will Be a Successful Year ...

    2017 WILL BE A SUCCESSFUL YEAR …  Forecast for the financial year 2017*  approx. 800,000 new contracts; additional 1.87 million contracts from Strato acquisition  approx. + 7 % sales  approx. + 12 % EBITDA * Incl. approx. € 95 million from the first-time consolidation of Strato, as well as an op

  24. Slide 24: ... and We're Laying the Foundation for a Successful Anniversary Year 2018

    … AND WE’RE LAYING THE FOUNDATION FOR A SUCCESSFUL ANNIVERSARY YEAR 2018  In March 2018, we are 20 years at the stock exchange  Targets 2018  > 20 million customer contracts  approx. 10 % EBITDA growth (for the first time > € 1 billion EBITDA) 24 Annual General Meeting 2017 Frankfurt am Main, Ma

  25. Slide 25: Combination with Drillisch

    COMBINATION WITH DRILLISCH 25 Annual General Meeting 2017 Frankfurt am Main, May 18, 2017

  26. Slide 26: Transaction at a Glance

    TRANSACTION AT A GLANCE  United Internet integrates 1&1 Telecommunication SE into Drillisch and creates a strong fourth player in the German telecommunications market  High synergies expected as of 2018; an annual volume of €150 million is anticipated as early as 2020, rising to €250 million annua

  27. Slide 27: Active Consolidation of the German Telco Market

    ACTIVE CONSOLIDATION OF THE GERMAN TELCO MARKET + • Revenues: € 2.5 billion • Revenue: € 3.2 billion • • Sales: €0.7 billion* Revenues: € 0.7 billion • Subscribers: 8.7 million • Subscribers: > 12 million • • Contracts: 3.4 million* Subscribers: 3.4 million Previous acquisitions: Previous acquisitio

  28. Slide 28: Target Structure Post Full Transaction

    TARGET STRUCTURE POST FULL TRANSACTION Drillisch AG ≤27.3% ≥72.7% shareholders Consumer Business Consumer Business Listed UI Ventures1 Access Access Applications Applications Investments1 100% 100% 100% 66.66% 25.10% 25.11% 30.20% 27.28% 10.46% 25.01% 8.31% 30.34% 1 As of 31 December 2016 28 Annual

  29. Slide 29: Results of the Fiscal Year 2016

    RESULTS OF THE FISCAL YEAR 2016 29 Annual General Meeting 2017 Frankfurt am Main, May 18, 2017

  30. Slide 30: Group: Customer, Sales and Earnings as of December 2016

    GROUP: CUSTOMER, SALES AND EARNINGS AS OF 31 DECEMBER 2016 (financial KPIs acc. to IFRS) 2015* 2016** Change Mobile internet contracts 3.48 million 4.31 million + 0.83 million DSL contracts 4.32 million 4.41 million + 0.09 million Business Applications contracts 5.99 million 6.05 million + 0.06 mill

  31. Slide 31: Group: Balance Sheet as of December 2016 (I)

    GROUP: BALANCE SHEET AS OF 31 DECEMBER 2016 (I) (acc. to IFRS in €k) Assets 31.12.2015 31.12.2016 Comments Property, plant and equipment / 1,054,709 1,024,476  Capex: €168.9m; D&A: €193.5m intangible assets Goodwill 1,100,123 1,087,685  Slight decrease due to currency effects  Stock exchange valu

  32. Slide 32: Group: Balance Sheet as of December 2016 (II)

    GROUP: BALANCE SHEET AS OF 31 DECEMBER 2016 (II) (acc. to IFRS in €k) Liabilities and equity 31.12.2015 31.12.2016 Comments Equity 1,149,758 1,197,812  Equity ratio: 29.4 % (prior year: 29.6 %)  Bank liabilities (net): Liabilities due to banks 1,536,502 1,760,653 €1,658.9m (prior year: €1,452.2m)

  33. Slide 33: Group: Cash Flow as of December 2016

    GROUP: CASH FLOW AS OF 31 DECEMBER 2016 (acc. to IFRS in €k) 31.12.2015 31.12.2016 Comments Operative cash flow 554,464 644,203  2015 without capital gains tax refund Cash flow from operating activities 533,204 486,983 (€242.7m); 2016 incl. payment of capital gains tax (€100.0m)  Capex: €168.9m (p

  34. Slide 34: Summary for 2017 / 2018

    SUMMARY FOR 2017 / 2018  Forecast for fiscal year 2017*  approx. 800,000 new contracts; additional 1.87 million contracts expected from Strato acquisition  approx. + 7 % sales  approx. + 12 % EBITDA  EPS 2017 expected to be almost unchanged from the previous year (operative EPS: € 2.13); EPS be

  35. Slide 35: Good Start to the New Year

    GOOD START TO THE NEW YEAR  Key figures for the 1st quarter of 2017  17.16 million customer contracts (+ 190,000)  € 989.2 million sales (+ 2.1 %)  € 215.0 million EBITDA (+ 6.1 %)  € 167.6 million EBIT (+ 8.8 %)  Impairment charge on Rocket Internet shares amounting to € 19.8 million (non-cas

  36. Slide 36: Share & Dividend

    SHARE & DIVIDEND 36 Annual General Meeting 2017 Frankfurt am Main, May 18, 2017

  37. Slide 37: Share & Dividend

    SHARE & DIVIDEND  Share  Price at end of 2016: € 37.10 (issue price in 1998: € 1.02)  Price as of May 17, 2017: € 47.95  Dividend  Dividend proposal for the Annual General Meeting: € 0.80 per share (prior year: € 0.70)  Dividend payment: € 159.7 million (prior year: € 142.9 million)  This cor

  38. Slide 38: Agenda

    AGENDA 38 Annual General Meeting 2017 Frankfurt am Main, May 18, 2017

  39. Slide 39: AGM Agenda Items

    SHARE & DIVIDEND 1. (Consolidated) financial statements for fiscal year 2016 2. Resolution on the utilization of the net retained profits 3. Resolution formally approving the activities of the members of the Management Board 4. Resolution formally approving the activities of the members of the Super

  40. Slide 40: Annual General Meeting

    UNITED INTERNET AG Annual General Meeting Alte Oper, Frankfurt am Main May 18, 2017 40 Annual General Meeting 2017 Frankfurt am Main, May 18, 2017

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