Freenet Ag · XETR:FNTN

Freenet — Q1 2015 Earnings Presentation

19 slides from Freenet's earnings presentation, May 7, 2015

  1. Slide 1: Management presentation Q1 2015 results

    Management presentation Q1 2015 results Christoph Vilanek, CEO and Joachim Preisig, CFO May 7, 2015

  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: Promising first quarter underlines guidance given for 2015

    Promising first quarter underlines guidance given for 2015  The new financial year started very successful while prudently and profitably expanding the traditional core business and the innovative digital lifestyle business  Strong Q1 with all relevant KPIs up yoy and in line with internal expecta

  4. Slide 4: Key figures Q1 2015 illustrate strong performance

    Key figures Q1 2015 illustrate strong performance [in EUR million] Group revenue Gross profit Group EBITDA Free cash flow +4.3% +4.9% +0.7% +9.0% 717.5 748.5 182.5 191.4 86.0 57.1 62.2 85.4 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Group revenue increases compared Gross profit

  5. Slide 5: freenet reports a good start into the new year

    freenet reports a good start into the new year Q1 2015 Q2 – Q4 2015  Strong Xmas campaign based performance  Re-freshment of top-leadership-team decision continues during month of January processes supposed to shorten time-to-market  Net adds promising also in Feb and March  Marketing campaignin

  6. Slide 6: freenet continues its successful strategy in the fields of digital lifestyle

    freenet continues its successful strategy in the fields of digital lifestyle  SmartSleap: Innovative products of "Withings Aura" around Health sleep analysis exclusively launched with GRAVIS  Accessories: Networx sports wristband, Jawbone UP, Network, bike mount Home  LED lighting system “Elgato

  7. Slide 7: Postpaid customer base subsequently grows 11 quarters

    Postpaid customer base subsequently grows 11 quarters [in million] + 2.8% Customer Ownership 8.79 8.92 9.04 Continuing positive development of customer ownership (+ 245,000 yoy) Postpaid customers 5.87 6.01 6.10 Improvement based on strong rise of postpaid customer base (+225,000 yoy) No-frills cust

  8. Slide 8: ARPU stability is within reach in 2015

    ARPU stability is within reach in 2015 [EUR/month] -1.20 -1.00 -0.90 -0.50  Q1 2014 -0.10 22.5  Q1 2015 22.4 22.6 21.5 21.7 21.6 2.9 2.4 2.7 2.6 21.2 21.1 21.2 21.1 Q1 2013 to Q1 2014 Q2 2013 to Q2 2014 Q3 2013 to Q3 2014 Q4 2013 to Q4 2014 Q1 2014 to Q1 2015 No frills Prepaid Postpaid ARPU No-fri

  9. Slide 9: Financial statements – income statement

    Financial statements – income statement [in EUR million] Q1 2015 Q1 2014 Revenue 748.5 717.5 Gross profit 191.4 182.5 EBITDA 86.0 85.4 Depreciation and amortisation -15.5 -16.0 EBIT 70.6 69.5 Interest balance -9.5 -9.5 EBT 61.0 60.0 Taxes on income -4.8 -2.6 Group result 56.2 57.4 Earnings per share

  10. Slide 10: Financial statements – balance sheet

    Financial statements – balance sheet [in EUR million] Assets Shareholders‘ equity and liabilities 31.03.2015 31.12.2014 31.03.2015 31.12.2014 Intangible Shareholders' equity 396.9 390.1 assets 1,346.0 1,293.6 Goodwill Borrowings 1,153.3 1,153.3 Trade accounts receivable 546,6 538,6 Trade accounts 42

  11. Slide 11: Financial statements – cash flow statement

    Financial statements – cash flow statement [in EUR million] Q1 2015 Q1 2014 Cash flow from operating activities 70.5 62.9 Cash flow from investing activities -8.0 -51.9 thereof net capex -8.3 -5.8 Cash flow from financing activities -1.5 -0.5 Change in cash and cash 61.0 10.5 equivalents Free cash f

  12. Slide 12: Detailed bridge from EBITDA to free cash flow for Q1 2015

    Detailed bridge from EBITDA to free cash flow for Q1 2015 [in EUR million] 86.0 -5.5 62.2 -10.0 -8.3 -0.0 EBITDA Change in net Tax payments Capex Other Free cash flow working capital FY 2014 365.6 - 29.0 - 40.4 - 27.9 - 1.7 266.6 FY 2015e 370 - 25 - 40 - 25 0 280 FY 2016e 375 - 30 - 35 - 25 0 285 12

  13. Slide 13: Two-year guidance confirmed

    Two-year guidance confirmed Customer Postpaid Group Group Free cash flow Dividend ownership ARPU revenue EBITDA (FCF)1 pay-out Guidance 50-75% of 375 m€ 285 m€ 2016 FCF Guidance 50-75% of 370 m€ 280 m€ 2015 FCF Results + 162,000 21.4 € 3,040.6 m€ 365.6 m€ 266.6 m€ 1.50 €/share² 2014 Contract Postpai

  14. Slide 14: Optimising the financing profile to further reduce refinancing risks

    Optimising the financing profile to further reduce refinancing risks Instruments and maturity profile (EUR million) New Issuance of Promissory Notes in May 2015 400  Issuance of Promissory Notes in May 2015 300  Investment Grade Structure and Pricing  Amount: EUR 100 million, due in 2020 and 2022

  15. Slide 15: Key achievements in Q1 2015

    Key achievements in Q1 2015  The 11th successive quarter of growth in Customer Ownership  Postpaid-ARPU stable  Increasing revenue due to postpaid business and digital lifestyle  EBITDA slightly increasing as expected  Strong cash flow generation  Optimising the debt structure by investment gr

  16. Slide 16: We take time for your questions

    We take time for your questions Christoph Vilanek, CEO Joachim Preisig, CFO  CEO of freenet AG since 2009  CFO of freenet AG since 2010  Management positions at debitel AG since 2005  CFO of debitel AG since 2006  Consultant for telecommunication with  CFO of T-Mobile/ Head of Group Controllin

  17. Slide 17: Shareholder structure

    Shareholder structure Major shareholders of freenet AG As of March 31, 2015 87.15% Other shareholders/freefloat** 5.16% Allianz Global Investors Europe GmbH* 4.65% 3.04% Deutsche Asset & Wealth Management Investment GmbH* Flossbach von Storch AG* * Including attributions according to German Securiti

  18. Slide 18: freenet AG share

    freenet AG share Dividend performance Indexed share performance (12 months) 2,00 € 100% 150% 1,80 € 1,60 € 72.5% 72.1% 80% 66% 125% 1,40 € 64% 1.50 € 1.45 € 1,20 € 1.35 € 60% 48% 1.20 € 1,00 € 100% 0,80 € 40% 0.80 € 0,60 € 75% 0,40 € 20% 0,20 € 50% 0,00 € 0% dividend per share Pay-out pay-out ratio

  19. Slide 19: freenet AG

    freenet AG Hollerstrasse 126 Investor Relations 24782 Büdelsdorf +49 (0) 40 513 06 778 www.freenet-group.de [email protected]

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