United Internet Ag · XETR:UTDI
United Internet — Non-Deal Roadshow (2004)
43 slides from United Internet's roadshow presentation, 2004
Slide 1: United Internet
United Internet united internet
Slide 2: Forward Looking Statements
Forward Looking Statements This Presentation contains certain forward looking statements. These forward looking statements include information about our projected capital expenditures, our assessment of certain market trends and include description of other forward looking data. These statements are
Slide 3: Contents
Contents 1. Company Development - Product Business - Outsourcing - Online Marketing 2. Outlook 2004 Attachments: 3. United Internet Companies 4. Results 2003 3
Slide 4: Company development
Company development 4
Slide 5: United Internet is specialist for value-added internet services
United Internet is specialist for value-added internet services 5
Slide 6: Development of value-added internet services
Development of value-added internet services ... Content Licensing with major media companies Purchase of line capacities, mainly from Access Deutsche Telekom AG In-house development of value-added Applications internet services 6
Slide 7: ... and operation in our data centers
... and operation in our data centers ! 21 million administered customer accounts ! 4.1 million domains ! 25 billion requests per month ! 750 terabytes of transfer volume per month ! 23 million e-mail postboxes ! 2 billion e-mails monthly ! 24,000 servers ! 160 terabytes of storage capacity ! Locall
Slide 8: Product business with strong brands
Product business with 3 strong brands Brand Positioning Target Group Plug and Play Consumers Discerning Do-it-Yourself private users and SoHos Full Service SMEs 8
Slide 9: Brands for product lines
3 brands for 3 product lines Information Management - e-mail, messaging, tasks, calendar, address administration, " " " 0700 numbers, team services Webhosting - home pages, e-shops, dedicated - " " servers Internet Access - DSL and narrowband " " " connections 9
Slide 10: Strong growth in Information Management
Strong growth in Information Management (in million customer contracts) Growth drivers: - Ongoing conversion of 18 million free accounts into fee-based 0.42 services 0.27 - New features such as increase in personal data storage 0.12 2002 2003 2004e 10
Slide 11: Strong growth in Webhosting
Strong growth in Webhosting (in million customer contracts) Growth drivers: - Expansion of foreign business (UK, USA, France and Austria) 1.82 1.50 - New user interfaces 1.31 - New features for successful e-commerce 2002 2003 2004e 11
Slide 12: Strong growth in Internet Access
Strong growth in Internet Access (in million customer contracts) 1.30 Growth drivers: 0.98 - Strengthening of our trade activities 0.97 0.62 - Genuine one-stop shopping via 0.65 reselling of DSL connections 0.31 - New features such as voice-over-IP or downloading audio/video files 0.31 0.33 0.33 200
Slide 13: In 2004 we expect approx. 3.5m customer contracts
In 2004 we expect approx. 3.5m customer contracts. Our 2008 target of 5m is now already planned for 2006. (in million customer contracts) 5.0 4.2 3.5 2.8 2.1 2002 2003 2004e 2005e 2006e 13
Slide 14: In 2004 we plan to reach sales of some €362m
In 2004 we plan to reach sales of some €362m. In the medium-term we expect €600m with an EBT-margin of about 20%. (Product segment in € million) > 600 > 480 362 293 211 2002 2003 2004e 2005e 2006e 14
Slide 15: In Germany we are number 2 in DSL business
In Germany we are number 2 in DSL business. In webhosting we are market leader. DSL customer contracts Hosted websites (in 000)* (in 000)** 3,859 2,440 2,070 750 500 185 173 390 308 135 258 240 T-Online United AOL Tiscali Arcor Freenet United Strato Deutsche Komplex/ Lycos Tiscali Internet Internet
Slide 16: We're also the world's leading webhoster
We’re also the world’s leading webhoster Hosted websites Hosted servers (in 000)* (in 000)** 3,859 21.9 15.2 2,163 2,070 10.7 1,251 7.4 7.2 1,071 1,065 5.6 United GoDaddy Strato Network NTT / Register United EV1 Korea Interland MCI Rackspace Internet Solutions Verio .com Internet Servers Networks *
Slide 17: Our Outsourcing segment enables us to fully utilize capacities
Our Outsourcing segment enables us to fully utilize capacities Brand Services Target Group White label United Internet products ISPs Software Vendors Customer Relationship Management 17
Slide 18: In 2004 we plan to reach sales of some €84m
In 2004 we plan to reach sales of some €84m. In the medium-term we expect €100m with an EBT-margin of about 10%. (Outsourcing segment in € million) > 100 > 92 84 77 70 2002 2003 2004e 2005e 2006e 18
Slide 19: Online Marketing segment
Besides our Product and Outsourcing business, we’re also active in the Online Marketing segment Brand Services Target Group Online Advertising Stake: 67 % Domain Marketing Advertisers Stake: 51 % Affiliate Marketing Stake: 70 % (since 05/05/04) 19
Slide 20: In 2004 we plan to reach sales of some €60m
In 2004 we plan to reach sales of some €60m. In the medium-term we expect €100m with an EBT-margin of about 5%. (Online Marketing segment in € million) > 100 > 80 60 45 37 2002 2003 2004e 2005e 2006e 20
Slide 21: Outlook 2004
Outlook 2004 21
Slide 22: We expect total Group revenues of €506m in 2004
We expect total Group revenues of €506m in 2004 (in € million) 506.0 23.5 % was 415.0 realized in the first quarter. 317.7 118.8 2002 2003 2004e Q1 / 2004 22
Slide 23: Group EBT is expected to reach €78 million
Group EBT is expected to reach €78 million (in € million) 78.0 64.8 39.4 92.0 27.1 % was realized in the 70.3 first quarter. 42.2 21.1 -2.8 -5.5 -14.0 2002 2003 2004e Q1 / 2004 EBT without foreign expansion in the Product segment Foreign expansion in the Product segment 23
Slide 24: We are continuing our success story!
We are continuing our success story! 24
Slide 25: Attachment: United Internet Companies
Attachment: United Internet Companies 25
Slide 26: GMX e-mail and messaging
! Pioneer and market leader for provider- independent e-mail and messaging solutions for private users. ! Over 18 million accounts, with an average of 15,000 new registrations per day. ! Increasing use of subscription-fee services (ProMail, TopMail). ! Low-cost internet access focusing on fast DSL c
Slide 27: German market leader in the hosting business
! German market leader in the hosting business, among the top 3 in the UK. Recently launched in the USA and France. ! Value-added services for SoHos and SMEs - Webhosting - domains, home pages, dedicated servers - tools for successful websites - Internet shops - professional shop solutions on rental
Slide 28: Complete Internet Packages
What’s more: Complete Internet Packages ! High-speed internet access in combination with target-group solutions. ! Wide range of add-on tools, e.g. Profi-Webspace, .de domain, Microsoft Outlook, hotspot usage, Media Center, online storage etc. ! Special starter sets with free DSL modems and W-LAN ro
Slide 29: High-end brand with tailored company solutions
! High-end brand with tailored company solutions. - multi-access DSL connections - top-quality webhosting packages - team services - online shops - root servers and managed servers ! Full on-site service via over 6,000 partner agencies. - home page design - shop set-up - launch of DSL connections an
Slide 30: Schlund Technologies white-label products
! Schlund Technologies markets value-added internet services as white-label products to smaller ISPs and multimedia agencies. ! As of December 31, 2003 some 6,500 resellers (prior-year: 3,000) were using our products. ! At year-end 2003, Schlund Technologies administered over 310,000 domains (prior-
Slide 31: twenty4help CRM services
! twenty4help provides CRM services for some 50 major clients. ! twenty4help is present at 10 European locations (prior-year: 9) and offers technical support in a total of 17 languages (prior-year: 16). ! An average of 1.5 million technical customer inquiries are dealt with every month. ! In 2004 th
Slide 32: AdLINK advertising network
! Operation of an advertising network with major websites, e.g. MTV, ADAC or Expedia.de. In total, 2,400 websites generate 3.4 billion page impressions per month. ! In 2003, some 3,600 advertising campaigns were placed with AdLINK. Advertising clients include major companies, such as Samsung, Deutsc
Slide 33: sedo domain trading platform
! sedo operates a trading platform for currently 1.6 million (“second-hand”) internet domains. ! In the field of “domain parking”, sedo also markets “unused“ domains to advertisers on behalf of the domain’s owner. ! sedo’s products are offered in English, French, Spanish and German. ! As of early 20
Slide 34: imedia affiliate network affili.net
! imedia operates an affiliate network under the “affili.net“ label. Suppliers of affiliate programs are connected here with website operators (= affiliates). ! 400 affiliate programs and 170,000 websites are currently connected through “affili.net“. ! imedia is only active in Germany at present. Th
Slide 35: United Internet also holds minority shares in three companies
United Internet also holds minority shares in three companies ! Metropolis (United Internet stake: 45.77 %) stands for professional community technology and know-how. Its customers include media companies such as n-tv, CNN and ZDF. ! Despite stagnating sales, the company succeeded in more or less br
Slide 36: Attachment: Results 2003
Attachment: Results 2003 36
Slide 37: 2003 was our best year so far
2003 was our best year so far ! Strong growth - 2.8 million customer contracts + 33 % - € 415.0 million revenue + 31 % - € 84.5 million EBITDA + 34 % - € 64.8 million EBT + 65 % ! Ongoing international expansion - Launch of our Product business in the USA in Q4/2003; Break-even reached in UK. - Star
Slide 38: Group sales
Group sales (in € million) +30.6 % 415.0 317.7 292.8 210.9 Products 77.2 69.8 Outsourcing 37.0 45.0 Affiliates / Head Office* 2002 2003 * Comparative figures for 2002 do not include the (on balance positive) special items from the sale of investments and restructuring costs nor discontinued operatio
Slide 39: Group EBITDA
Group EBITDA (in € million) +33.7 % 84.5 63.2 77.0 54.4 Products Outsourcing 15.5 13.9 Affiliates / -6.7 -6.4 Head Office* 2002 2003 * Comparative figures for 2002 do not include the (on balance positive) special items from the sale of investments and restructuring costs nor discontinued operations
Slide 40: Group EBT
Group EBT (in € million) +64.5 % 64.8 39.4 62.9 40.9 Products Outsourcing 10.5 7.5 Affiliates / -5.6 Head Office* -12.0 2002 2003 * Comparative figures for 2002 do not include the (on balance positive) special items from the sale of investments and restructuring costs nor discontinued operations 40
Slide 41: Selected balance sheet figures
Selected balance sheet figures United Internet Group 12/31/2002 12/31/2003 Balance sheet total € 237.8 m € 267.7 m Financial assets € 76.1 m € 74.5 m of which goodwill € 61.8 m € 60.7 m Outsourcing segment 0.2-times EBITDA 2003 € 2.8 m € 2.8 m 0.4-times EBT 2003 (twenty4help, Schlund Technologies) P
Slide 42: Consolidated cash flow
Consolidated cash flow 31.12.2002 31.12.2003 (in €k) (in €k) Cash flow from operating activities Net Income 37,305 38,218 Adjustments to reconcile net income to net cash provided by operating activities Amortization (from continuing operations) Depreciation and amortization 22,729 22,011 Goodwill im
Slide 43: Consolidated cash flow (continued)
Consolidated cash flow (continued) 31.12.2002 31.12.2003 (in €k) (in €k) Cash flow from investment activities Capital expenditure for intangible assets and property, plant and equipment -32,770 -27,168 Repayments / payments of loans granted 3,461 805 Disposal of assets 1,684 756 Acquisition costs, n