Freenet Ag · XETR:FNTN

Freenet — Q3 2011 Earnings Presentation

15 slides from Freenet's earnings presentation, Nov 10, 2011

  1. Slide 1: Management Presentation Q3/2011 Results

    Management Presentation Q3/2011 Results 10 November 2011

  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: Successful Q3 shows continuity in performance improvement

    Successful Q3 shows continuity in performance improvement freenet AG improved all relevant KPIs in Q3/2011 compared to the previous quarter ƒ Postpaid customer base amounts to 5,796,000 (shrinkage only -45,000) ƒ Postpaid ARPU increased to 24.6 € or by 3.8% ƒ No-frills customer base grew by 170,000

  4. Slide 4: freenet AG changes its agenda from internal to external focus

    freenet AG changes its agenda from internal to external focus Q1 – Q2/2011 Q3/2011 Q4/2011 ƒ System integration ƒ Push of new tariff plans (Flat ƒ Increase of online / e-commerce Smart, Flat 4 You, Flat Allnet) with activities and consequently share of ƒ Management of limited a new customer acquisit

  5. Slide 5: freenet extends retail strength with GRAVIS/Apple cooperation

    freenet extends retail strength with GRAVIS/Apple cooperation ƒ freenet AG cut a cooperation deal with Germany´s largest independent Apple dealer GRAVIS Computervertriebsgesellschaft mbH ƒ mobilcom-debitel @ GRAVIS – full mobile tariff portfolio now available in all 28 GRAVIS shops and via www.gravi

  6. Slide 6: Growth in customer ownership after five quarters of shrinkage

    Growth in customer ownership after five quarters of shrinkage Customer base Customer base (thousand users) Total customer base 15,844 15,202 15,158 Prepaid customers 7,562 7,316 7,147 ƒ Customer ownership (postpaid and no-frills segment) totals 8.011 million (+125,000 = +1.6%) Customer ownership 8,2

  7. Slide 7: Positive development of ARPU in postpaid

    Positive development of ARPU in postpaid ARPU ARPU (€ / month) 23.8 23.9 ƒ Postpaid: − YTD accumulation: 23.9 € or +10 cents vs. YTD 2010 − Q3/2011: 24.6 € or +90 cents vs. Q2/2011 (+3.8%) (seasonal effect Q3/2010 vs. Q2/2010 was +30 cents) 5.1 4.7 − Q3/2011: 24.6 € or +10 cents vs. Q3/2010 (+0.4%)

  8. Slide 8: Financial statements – income statement (1/2)

    Financial statements – income statement (1/2) In € million Q1 - Q3/2011 Q1 - Q3/2010 Q3/2011 Q3/2010 adjusted1 adjusted1 Revenue 2,375.3 2,481.8 829.0 843.4 Gross profit 513.7 532.5 178.0 174.7 EBITDA 246.5 247.0 84.2 86.2 NRI (non recurring items) 17.4 23.6 5.9 10.0 Recurring EBITDA 263.9 270.6 90.

  9. Slide 9: Financial statements – income statement (2/2)

    Financial statements – income statement (2/2) In € million Q1 - Q3/2011 Q1 - Q3/2010 Q3/2011 Q3/2010 adjusted1 adjusted1 EBT 70.9 71.7 28.1 31.1 Taxes on income 6.8 3.9 2.8 -1.5 Group result from continued operations 77.7 75.6 30.9 29.7 Group result from discontinued operations 0.1 -2.6 0.0 -1.1 Gro

  10. Slide 10: Financial statements – balance sheet

    Financial statements – balance sheet Assets Shareholders‘ equity and liabilities in € million in € million 30.6.2011 30.6.2011 30.9.2011 30.9.2011 508.7 Intangible assets 546.7 1,109.9 Shareholders‘ equity 1,181.3 1,116.9 Goodwill 1,116.9 706.5 Borrowings 739.7 447.3 Trade accounts receivable 413.1

  11. Slide 11: Financial statements – cash flow statement

    Financial statements – cash flow statement In € million Q1 - Q3/2011 Q1 - Q3/2010 Q3/2011 Q3/2010 Cash flow from operating activities 198.2 165.6 64.4 61.5 Cash flow from investing activities -9.6 4.8 -3.5 -4.9 Cash flow from financing activities -187.8 -526.8 -146.6 -77.2 Change in cash and cash eq

  12. Slide 12: Detailed bridge from recurring EBITDA to free cash flow

    Detailed bridge from recurring EBITDA to free cash flow Free cash flow bridge Q1-Q3/2011 in € million 263.9 -17.4 -25.6 -14.0 -22.6 184.3 Recurring NRIs Change in net Capex Tax Free cash EBITDA working capital payments flow FY 2011e: 355 ~ -25 ~ -40 ~ -25 ~ -30 > 230 12 | Management Presentation | N

  13. Slide 13: Q3 performance leads to guidance adjustments

    Q3 performance leads to guidance adjustments Guidance development 2011 original Q2 update (9 August 2011) Q3 update Rec. Group EBITDA 325 m€ 350 m€ 355 m€ Free cash flow1 >200 m€ >220 m€ >230 m€ 40% - 60% of free cash 40% - 60% of free cash flow, with a Dividend proposal 80 cents flow, with a minimu

  14. Slide 14: Summary

    Summary ƒ Performance in Q3 even better than in the first half of 2011 ƒ Projection/guidance for the full year 2011 further increased ƒ Company shifts from restructuring and integration towards design of the future 14 | Management Presentation | November 2011

  15. Slide 15: freenet AG Hollerstraße 126 24782 Büdelsdorf

    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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