Freenet Ag · XETR:FNTN

Freenet — Q1 2013 Earnings Presentation

17 slides from Freenet's earnings presentation, May 8, 2013

  1. Slide 1: Management Presentation Q1/2013 Results

    Management Presentation Q1/2013 Results 8 May 2013

  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: Today's speakers

    Today’s speakers Christoph Vilanek, Chief Executive Officer  Management positions in Direct Marketing and Media 1991 - 2001  Consultant for telecommunication with McKinsey&Company since 2001  Management positions at debitel AG since 2005  CEO of freenet AG since 2009 Joachim Preisig, Chief Finan

  4. Slide 4: Strong first quarter supports guidance for 2013 and 2014

    Strong first quarter supports guidance for 2013 and 2014 Q1/2013 results Main KPIs in Q1/2013  Group revenue increase by 18.1 m€ from 757.2 m€  Further year-on-year rise of customer ownership to 775.2 m€; top line contribution from GRAVIS by around 315,000 to 8.47 million customers: and MOTION TM

  5. Slide 5: Clear agenda for 2013 on the path towards digital lifestyle

    Clear agenda for 2013 on the path towards digital lifestyle Q1/2013 Q2 - Q4/2013  Adjustments in the flat rate portfolio  Further extension of tariff portfolio in all segments e.g. mirroring the market development, Vodafone Full Flat, Telekom counter offer e.g. inclusion of SMS flats, relaunch  I

  6. Slide 6: GRAVIS acquisition is a milestone on the path to digital lifestyle

    GRAVIS acquisition is a milestone on the path to digital lifestyle freenet became largest independent retail partner of Apple in Germany Situation Transaction  GRAVIS addresses about five  Acquisition of 100% shares of million Apple addicts with in total GRAVIS as of 1 February 2013 28 shops and s

  7. Slide 7: Extension of proprietary or fully steered points of sale

    Extension of proprietary or fully steered points of sale Extending platform to national coverage Sales Performance Index (SPI/shops and month)  mobilcom-debitel Shop GmbH successfully transformed its revenue and business model towards a digital lifestyle provider 136 116  Revenue share of other th

  8. Slide 8: Strong customer ownership despite declining total customer base

    Strong customer ownership despite declining total customer base Development of the customer base Customer base (in million)  Customer ownership (Postpaid + No-frills) was Total customer base 14.74 14.08 13.71 increased by 314,000 year-on-year; slight decrease Prepaid customers 6.58 5.58 5.24 compar

  9. Slide 9: ARPU development

    ARPU development Average revenue per user (ARPU) ARPU (€ / month) 23.4 22.8  Postpaid ARPU at 22.4 € (Q1/2012: 23.4 €), 22.4 slight decrease compared to Q4/2012  No-frills ARPU at 3.5 €, thus 0.4 € lower 3.9 compared to Q1/2012 3.5 3.5 2.8 2.9 2.8  Data revenue share still growing to 22.6% of pos

  10. Slide 10: Financial statements – income statement

    Financial statements – income statement In € million Q1/2013 Q1/2012  Revenue increase generated in adjusted1 high value sectors and by GRAVIS and MOTION TM Revenue 775.2 757.2 inital consolidation Gross profit 172.8 166.9  Gross profit margin of 22.3% EBITDA 85.3 85.1  EBITDA at the same level a

  11. Slide 11: Financial statements – balance sheet

    Financial statements – balance sheet Assets Shareholders‘ equity and liabilities in € million in € million 31.3.2013 31.12.2012 31.3.2013 31.12.2012 adjusted adjusted 354.0 Intangible assets 356.5 1,239.2 Shareholders‘ equity 1,177.6 1,123.5 Goodwill 1,116.7 625.3 Borrowings 656.6 503.7 Trade accoun

  12. Slide 12: Financial statements – cash flow (CF) statement

    Financial statements – cash flow (CF) statement In € million Q1/2013 Q1/2012  Decline of CF from operating activities results from increased working capital Cash flow from operating activities 59.0 74.7 due to bonus payments by a network operator received Cash flow from investing activities -17.1 -

  13. Slide 13: Attractive dividend policy for financial years 2013/14 to increase shareholder value

    Attractive dividend policy for financial years 2013/14 to increase shareholder value Focus on increasing shareholder value, based on an attractive dividend policy and adequate financial resources to remain flexible for future growth Development of dividend payments (€ per share)  Increase of target

  14. Slide 14: Confirmation of sustainable two-year guidance

    Confirmation of sustainable two-year guidance Results 2012 Guidance Guidance Comments 2013 2014 +41,000 Slight increase in contract customer Contract customer base customers base expected for 2013/14 Postpaid ARPU stabilisation at around Postpaid ARPU 23 € in 2013 and 2014 Revenue increase anticipat

  15. Slide 15: Detailed bridge from EBITDA to free cash flow

    Detailed bridge from EBITDA to free cash flow Free cash flow bridge Q1/2013 in € million 85.3 -18.4 -3.7 -2.6 -4.0 -0.2 56.4 EBITDA Change in net Tax payments Capex Profit from Other Free cash flow working capital the sale of freeXmedia Financial 355 ~ -45 ~ -35 ~ -20 - ~0 255 year 2013e Financial 3

  16. Slide 16: Summary

    Summary  Strategic move into digital lifestyle opens new windows of growth opportunities  Comprehensive and independent customer experience as well as focus on high- value customer relationships results in a strong customer ownership despite declining total customer base  Strong business performa

  17. Slide 17: freenet AG Investor Relations contact

    freenet AG freenet AG Hollerstraße 126 Investor Relations 24782 Büdelsdorf +49 (0)40 51306 778 www.freenet-group.de [email protected]

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