Freenet Ag · XETR:FNTN

Freenet — Q2 2013 Earnings Presentation

16 slides from Freenet's earnings presentation, Aug 7, 2013

  1. Slide 1: Management Presentation Q2/2013 Results

    Management Presentation Q2/2013 Results 7 August 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: Solid second quarter 2013, guidance confirmed

    Solid second quarter 2013, guidance confirmed Q2/2013 financial results Main operational KPIs in Q2/2013  Group revenue increases by 7.1% year-on-year to  Further year-on-year rise of customer ownership 809.6 m€, full consolidation of GRAVIS and MOTION by around 330,000 to 8.56 million customers:

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

    Clear agenda for 2013 on the path towards digital lifestyle Q2/2013 Q3 - Q4/2013  Continuous portfolio adjustments but  Due to E-Plus/O2 merger discussions lower number of new no relevant tariff moves tariffs and price moves expected  Exclusive distribution contract with Media-Saturn Deutschland

  6. Slide 6: Increase of customer ownership despite slightly declining total customer base

    Increase of customer ownership despite slightly declining total customer base Development of the customer base Customer base (in million)  Customer ownership (Postpaid + No-frills) was increased by 330,000 year-on-year and by around Total customer base 14.46 13.71 13.56 88,000 during Q2 Prepaid cus

  7. Slide 7: ARPU development

    ARPU development Slight rise of ARPUs q-o-q due to seasonal effects but decline in y-o-y development ARPU (€ / month)  Postpaid ARPU at 22.5 € (Q2/2012: 23.5 €), 23.5 slight increase compared to Q1/2013 22.4 22.5  No-frills ARPU at 3.6 €, thus 0.4 € lower compared to Q2/2012 but 0.1 € higher than

  8. Slide 8: Indexed development of postpaid ARPUs (as reported)

    Indexed development of postpaid ARPUs (as reported) freenet better positioned in an overall downward market trend 115% 110% 105% 100% 98% 97% 95% 92% 90% 90% 87% 86% 85% Deutsche Telekom Vodafone O2 E-Plus freenet Weighted average MNO postpaid market ARPU 8 l Management Presentation l 7 August 2013

  9. Slide 9: Financial statements – income statement

    Financial statements – income statement In € million Q1 – Q2/2013 Q1 – Q2/2012 Q2/2013 Q2/2012 adjusted1 adjusted1 Revenue 1,584.9 1,513.1 809.6 755.9 Gross profit 349.8 337.4 177.0 170.6 EBITDA 170.4 170.7 85.2 85.6 Depreciation and amortisation -27.7 -74.1 -13.5 -37.0 EBIT 142.7 96.7 71.7 48.6 Int

  10. Slide 10: Financial statements – balance sheet

    Financial statements – balance sheet Assets Shareholders‘ equity and liabilities in € million in € million 30.6.2013 31.3.2013 30.6.2013 31.3.2013 354.0 348.8 Intangible assets 1,115.7 Shareholders‘ equity 1,239.2 1,123.5 1,122.1 Goodwill 664.3 Borrowings 625.3 503.7 461.0 Trade accounts receivable

  11. Slide 11: Financial statements – cash flow statement

    Financial statements – cash flow statement In € million Q1 – Q2/2013 Q1 – Q2/2012 Q2/2013 Q2/2012 Cash flow from operating activities 132.8 130.5 73.8 55.8 Cash flow from investing activities -19.9 -4.2 -2.8 -2.6 Cash flow from financing activities -253.2 -225.6 -207.7 -183.4 Change in cash and cash

  12. Slide 12: 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 in the Postpaid ARPU region of 23 € in 2013 and 2014 Revenue increase an

  13. Slide 13: Detailed bridge from EBITDA to free cash flow

    Detailed bridge from EBITDA to free cash flow Free cash flow bridge 1st half of 2013 in € million 170.4 -24.4 -9.0 -6.0 -4.0 -0.2 126.8 EBITDA Change in net Tax payments Capex Profit from Free cash flow working capital the sale of freeXmedia Financial 355 ~ - 45 ~ - 31 ~ - 20 -4 ~0 255 year 2013e Fi

  14. Slide 14: Shareholder structure and share performance

    Shareholder structure and share performance Shareholder structure as of 30 June 2013 Indexed share performance against TecDAX 180% Flossbach von Storch SICAV 170% (held by Flossbach von Storch Invest S.A.) 160% 4.93% 150% 140% Drillisch AG, MSP Holding GmbH 130% 4.50% 120% 110% State of Norway, Norg

  15. Slide 15: Summary

    Summary  GRAVIS and MOTION TM integration well on track  Further role out of tested digital lifestyle products and services  Second quarter 2013 results underline freenet’s achievement in becoming more independent from the dynamic and competitive market environment  Management confirms sustainab

  16. Slide 16: 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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