Freenet Ag · XETR:FNTN

Freenet — Investor Day (April 2017)

18 slides from Freenet's investor day presentation, Apr 12, 2017

1. Slide 1: Capital Markets Day 2017 First results TV and guidance

   Capital Markets Day 2017 First results TV and guidance Christoph Vilanek, CEO and Joachim Preisig, CFO 12 April 2017 | Analyst and Investor Conference and Call 1 | Capital Markets Day 2017 | 12.04.2017

2. Slide 2: Cautionary statement

   Cautionary statement The following 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 the

3. Slide 3: New freenet Group operational set-up from 2017

   New freenet Group operational set-up from 2017 DIGITAL LIFESTYLE PROVIDER Core Business TV and Media Business Mobile Service Providing Business to business services  mobilcom-debitel  Radio broadcasting (UKW, DAB+)  klarmobil  Network services Retail and trade  Transport of public and private T

4. Slide 4: Continuing solid core business, slowly growing adjacent business

   Continuing solid core business, slowly growing adjacent business  Price stability with punctual increases from Vodafone and Deutsche Telekom Mobile market  Both driving convergent offers for their loyal core customer base  Telefónica with the attempt to monetise data, but in SIM-only cannibalized

5. Slide 5: Media Broadcast with relevant sustainable contribution from B2B

   Media Broadcast with relevant sustainable contribution from B2B  Increased capex in 2016 and 2017 to build up DVB-T2 coverage network  Transport fees from public channels as well as private channels constant in 2017, slow decrease for private channels from 2018  Revenues and margin in radio broad

6. Slide 6: freenet TV delivering significant contribution from 2018

   freenet TV delivering significant contribution from 2018  DVB-T2 revenues for conditional access from July 2017  Complementary to IPTV  New set top boxes and CI+ modules sold with 3-month  Potential synergies of waipu.tv with freenet free trial period TV connect  USB stick with 1-month free tri

7. Slide 7: Product demonstration at freenet's Points of Sale

   Product demonstration at freenet’s Points of Sale Placement in around 300 mobilcom-debitel and GRAVIS shops Sales focus in 2017/Q1 with strong sales uplift (more than 300% increase) 7 | Capital Markets Day 2017 | 12.04.2017

8. Slide 8: DVB-T2 launch with promising results and showing the potential

   DVB-T2 launch with promising results and showing the potential Growth drivers 2017 financials  Replacement of first TV set in household  Average pay period 5 months  Extension to 2nd and 3rd TV set, as well as summer houses, camp grounds, ...  Total revenues of 12-16 million euros  Non-TV devic

9. Slide 9: EXARING platform extremely scalable, adapting new trends fast, very lean

   EXARING platform extremely scalable, adapting new trends fast, very lean Evolution – use of technical platform  waipu.tv today delivers linear TV in SD and HD  Both SVoD and TVoD can be handled by the platform in terms of DRM and billing  Overall capacity of IP fibre network as well as encoding i

10. Slide 10: Q1 subscriber growth proves effectiveness of marketing initiatives

    Q1 subscriber growth proves effectiveness of marketing initiatives Key findings +137%  Free user generation easy to stimulate Soft launch with Launch mid  Conversion into paid with increasing beta version of success 146,000 March 2017 amazon fire  No technical problems or hick-ups with Jan/Feb 20

11. Slide 11: March campaign with prominent marketing placements

    March campaign with prominent marketing placements: e.g. BILD & COMPUTER BILD 11 | Capital Markets Day 2017 | 12.04.2017

12. Slide 12: Integrated OOH March campaign with waipu.tv claim

    Integrated OOH March campaign with waipu.tv claim Coincided with German DVB-T shut down 12 | Capital Markets Day 2017 | 12.04.2017

13. Slide 13: Early indicators drive our ambition with waipu.tv

    Early indicators drive our ambition with waipu.tv Key believes Typical start-up  Growing acceptance of IPTV set-up  Volume also driven by special content  Relevant subscriber  Integration of SVoD and TVoD will revenues only from cannibalise proprietary apps etc. 2018 ff > 500,000  Growth in tec

14. Slide 14: EXARING's assets will drive revolutionary opportunities

    EXARING’s assets Monetise big data will drive revolutionary opportunities  In depth data from users to optimise programming, Exploit the infrastructure content, playout  Discovery of NPVR data  Exceptional low latency  User patterns to be matched Wiretap addressable TV enables e.g. gaming, VR wi

15. Slide 15: New financial guidance

    New financial guidance Group revenue Group EBITDA Free cash flow (FCF)1 Dividend payout Perspective 50-75% 2018 of FCF incl. Sunrise Guidance > 410.0 m€2 ~310.0 m€3 50-75% 2017 (+ Sunrise) (+Sunrise) of FCF incl. Sunrise Results 402.3 m€ 311.4 m€ 3,362.4 m€ (incl. Sunrise (incl. Sunrise 1.60 €/share

16. Slide 16: New KPI guidance

    New KPI guidance Mobile waipu.tv freenet TV Communications Installed Customer Postpaid Total Paying Paying ARPU1 base/ ARPU2 ownership ARPU Users User Users Hardware Perspective 2018 Guidance > 500,000 > 100,000 ~ 6.0 € > 2,500,000 > 800,000 ~ 4.5 € 2017 Results + 232,000 21.4 € n/a n/a n/a n/a n/a

17. Slide 17: Free cash flow bridge

    Free cash flow bridge Detailed bridge from EBITDA to free cash flow Quarterly breakdown of free cash flow2 FY2017e FY2017e [in million euros] [in million euros] > 4101 -10 -40 ~ 3102 85 85 85 -50 55 EBITDA Change in net Tax payments Capex Free cash flow Q1 Q2 Q3 Q4 working capital 1) EBITDA contribu

18. Slide 18: Thank you.

    Thank you. Hollerstrasse 126 Investor Relations 24782 Büdelsdorf +49 (0) 40 513 06 778 www.freenet-group.de [email protected] 18 | Capital Markets Day 2017 | 12.04.2017

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