United Internet Ag · XETR:UTDI

United Internet — Non-Deal Roadshow (October 2019)

44 slides from United Internet's roadshow presentation, October 2019

  1. Slide 1: United Internet AG Corporate presentation

    UNITED INTERNET AG Corporate presentation October 2019 1 Corporate presentation October 2019

  2. Slide 2: Business Areas: Access & Applications

    2 BUSINESS AREAS: ACCESS & APPLICATIONS ACCESS APPLICATIONS Motivated team  9,150 employees, of which approx. 3,000 in product management, development and data centers Networks Sales strength Content  More than 5 million contracts p. a.  50,000 registrations for free services every day Operationa

  3. Slide 3: Current Group Structure

    CURRENT GROUP STRUCTURE 1&1 Drillisch AG ≤25% ≥75% shareholders Consumer Business Consumer Business Listed UI Ventures Access Access Applications Applications investments 100% 100% 100% 66.66% 30.70% 29.70% 25.39% 25.01% 9.00% 27.42% 3 Corporate presentation October 2019

  4. Slide 4: "Access" in H1 2019

    „ACCESS“ IN H1 2019  CONSUMER ACCESS  CONSUMER APPLICATIONS  BUSINESS ACCESS  BUSINESS APPLICATIONS 4 Corporate presentation October 2019

  5. Slide 5: Access Division: Portfolio and Target Groups

    ACCESS DIVISION: PORTFOLIO AND TARGET GROUPS Consumer Business Target countries Germany Germany Target groups Home users, freelancers, small businesses SMBs, large corporations Own network and own applications in combination with Solutions based on our own 47,700 km Solutions standardized network so

  6. Slide 6: 5G Rationale – 5G connects people, applications and machines

    5G RATIONALE – 5G CONNECTS PEOPLE, APPLICATIONS AND MACHINES  5G is the basis for a new economic Autonomous Smart City eco-system Driving  Networks, applications and billions of devices Digital Digital E-Health that are not yet internet-enabled are growing Farming Startups together Connected Intel

  7. Slide 7: 5G Rationale – Advantages of operating our own 5G network

    5G RATIONALE – ADVANTAGES OF OPERATING OUR OWN 5G NETWORK  “Tailor-made” network with highest quality  New business fields and customer groups (B2B, FWA)  Increased vertical integration  Internalization of network costs (rents)  Stronger sustainability of our mobile communications business FTTB

  8. Slide 8: Successful participation in the 5G auction

    SUCCESSFUL PARTICIPATION IN THE 5G AUCTION  Acquisition of frequencies (5x10 MHz in 3.6 GHz), available from 1 January 2021 at the latest  € 735 million (installment payments over 12 years)  Acquisition of frequencies (2x10 MHz1 in 2 GHz), available from 1 January 2026  € 335 million (installmen

  9. Slide 9: Roadmap for network build

    ROADMAP FOR NETWORK BUILD  1st step: Acquisition of spectrum   2nd step: Negotiations about national roaming and infrastructure sharing  3rd step: Cooperation agreement with one or more technology partner(s) and their respective services  4th step: Network build-out based on the 1&1 Versatel ne

  10. Slide 10: Using 1&1 Versatel's fiber network

    USING 1&1 VERSATEL’S FIBER NETWORK  1&1 Versatel runs one of the largest fiber networks in Germany, which can be used as 5G backhaul  In 250 German cities, including 19 of the 25 largest cities  47,693 km (previous year: 45,839 km) FTTB Today: Mobile communications base stations from third partie

  11. Slide 11: Roll-out obligations

    ROLL-OUT OBLIGATIONS  End of 2022  1,000 active 5G base stations  End of 2025  25 % household coverage – corresponding to up to 40 biggest cities  End of 2030  50 % household coverage – corresponding to up to 390 biggest cities  End of 2021  Further construction of antenna sites in “white sp

  12. Slide 12: Consumer Access: Fixed-line business

    CONSUMER ACCESS: FIXED-LINE BUSINESS  Largest alternative German DSL provider  Connect fixed-line test: #1 in 2015, #2 in 2016, #1 in 2017, #2 in 2018, #3 in 2019 – since 2015 always rated “very good” Last mile:  VDSL vectoring (FTTC) primarily via Layer 2 infrastructure of FTTC DTAG Deutsche Tel

  13. Slide 13: Consumer Access: Mobile business

    CONSUMER ACCESS: MOBILE BUSINESS  Germany’s leading MVNO  Broad market coverage Main brand  TEFD remedy partner with long- term guaranteed access to up to Co-brands 30% of network capacity and all future technologies, incl. 5G  Additional wholesale contract Discount brands with Vodafone 13 Corpo

  14. Slide 14: Consumer Access: Customer contracts

    CONSUMER ACCESS: CUSTOMER CONTRACTS (in million) Mobile Internet Broadband connections 13.54 13.92 14.00 +0.38 12.00  13.92 million customer contracts (+ 380,000) 10.00 9.20 9.58  9.58 million mobile internet contracts (+ 380,000) 8.00 6.00  4.34 million broadband connections 4.00 ADSL / VDSL / F

  15. Slide 15: Consumer Access: Revenues

    CONSUMER ACCESS: REVENUES (acc. to IFRS in € million) Service revenues Hardware revenues  + 0.4 % revenues to € 1,812 million 2,000 1,805.7 1,812.1 +6.4  + 3.4 % service revenues to € 1,471.1 million (+0.4%) 1,500  - 10.8 % (€ - 41.4 million) low-margin hardware revenues to € 341.0 million 1,423.

  16. Slide 16: Consumer Access: EBITDA

    CONSUMER ACCESS: EBITDA (acc. to IFRS in € million)  + 0.1 % EBITDA to € 340.4 million 350 340.2 340.4 +0.2 (+0.1%)  € - 2.3 million one-offs from Drillisch integration 300 (prior year: € - 7.7 million) 250  € - 37.1 Mio. € million additional costs from a time- 200 limited adjustment mechanism of

  17. Slide 17: Focus 2019

    FOCUS 2019  Further consolidation of the organizations of 1&1 and Drillisch  Continuous increase in customer satisfaction through new service offerings  Continued strong growth in number of contracts  Operating own 5G network KST benchmark (on a competitive basis) (1) Results and ranking 2019 1&

  18. Slide 18: Business Access

    BUSINESS ACCESS  One of the largest German fiber-optic networks  Project business and plug-and-play solutions for medium-sized companies Business  Fiber-optic network with FTTB 47,693 km (30.06.18: 45,839 km) Authorities  In 250 German cities, including 19 of the 25 largest cities  16,315 direc

  19. Slide 19: Business Access: Revenues

    BUSINESS ACCESS: REVENUES (acc. to IFRS in € million) 250 234.3 222.2 +12.1 (+5.4%) 200  + 5.4 % revenues to € 234.3 million 150  Positive development for B2B and wholesale 100 50 0 H1 2018 H1 2019 (IFRS 15) (IFRS 16) 19 Corporate presentation October 2019

  20. Slide 20: Business Access: EBITDA

    BUSINESS ACCESS: EBITDA (acc. to IFRS in € million) 80 70 70.2  + 173.2 % EBITDA to € 70.2 million 60  Positive business development 50 +44.5 (+173.2%)  € + 30.5 million IFRS 16 effect 40  30.0 % EBITDA margin (prior year: 11.6 %) 30 25.7 20  + 54.5 % comparable EBITDA – w/o IFRS 16 effects 10

  21. Slide 21: "Applications" in H1 2019

    „APPLICATIONS“ IN H1 2019  CONSUMER ACCESS  CONSUMER APPLICATIONS  BUSINESS ACCESS  BUSINESS APPLICATIONS 21 Corporate presentation October 2019

  22. Slide 22: Applications Division: Portfolio and Target Groups

    APPLICATIONS DIVISION: PORTFOLIO AND TARGET GROUPS Consumer Business Germany, Austria, Switzerland, UK, USA, France, Germany, Austria, France, Netherlands, UK, Italy, Poland, Target countries Spain, India Portugal, Spain, Canada, Mexico, USA Target groups Home users Freelancers, SMBs, Web Profession

  23. Slide 23: Consumer Applications: From e-mail service to command center

    CONSUMER APPLICATIONS: FROM E-MAIL SERVICE TO COMMAND CENTER FOR COMMUNICATION, INFORMATION AND IDENTITY MANAGEMENT Communication Online office and organization Texts, spreadsheets, E-mail, calendar, presentations contacts, SMS, fax Cloud storage De-Mail For photos, videos, Legally secure communicat

  24. Slide 24: Consumer Applications: Assets

    CONSUMER APPLICATIONS: ASSETS  One of the leading providers in Consumer Applications  31.4 million active user accounts in Germany – more than 50% market share in private emails Cloud- eIDAS/ E-Mail* Content* Speicher* De-Mail #1 #3 #1 #1  Differentiation through data #2 #2 – – protection and dat

  25. Slide 25: Consumer Applications: Accounts

    CONSUMER APPLICATIONS: ACCOUNTS (in million) Free accounts Pay accounts 39.25 39.21  39.21 million consumer accounts 40.00 -0.04 35.00 (- 40,000 due to seasonal effects), thereof 30.00  36.95 million free accounts (- 50,000) 25.00 37.00 36.95  2.26 million pay accounts (+ 10,000) 20.00 15.00  23

  26. Slide 26: Consumer Applications: Revenues

    CONSUMER APPLICATIONS: REVENUES (acc. to IFRS in € million) Pay accounts/portal marketing Sale of third-party inventory  - 11.7 % revenues to € 123.8 million  € - 11.2 million from reduction of advertising space 150 140.2 -16.4 (prior year: € - 4.7 million) in the core business 123.8 (-11.7%)  €

  27. Slide 27: Consumer Applications: EBITDA

    CONSUMER APPLICATIONS: EBITDA (acc. to IFRS in € million)  - 13.2 % EBITDA to € 47.3 million 54.5 55 -7.2  € - 9.9 million from reduction of advertising space 50 47.3 (-13.2%) 45 and transition to data-driven business models 40 35 (prior year: € - 5.1 million) 30  € + 2.1 million from IFRS 16 25

  28. Slide 28: Summary - Big Data Opportunity for Consumer Applications

    SUMMARY - BIG DATA OPPORTUNITY FOR CONSUMER APPLICATIONS Single-Sign-On process: netID  Largest customer base in the attractive DACH market, leveraging two of the strongest and most trusted Consumer brands in Germany: GMX and WEB.de Applications  39m customer accounts, of which 37m free accounts a

  29. Slide 29: Business Applications: From web host to e-business solutions provider

    BUSINESS APPLICATIONS: FROM WEB HOST TO E-BUSINESS SOLUTIONS PROVIDER E-mail Website Sector Business marketing design Mobile apps content apps Local Display E-payment E-shops SEO tools listings advertising solutions 29 Corporate presentation October 2019

  30. Slide 30: Lift off to a new world of hosting

    LIFT OFF TO A NEW WORLD OF HOSTING What’s new?  1&1 Internet SE + ProfitBricks = 1&1 IONOS  IONOS by 1&1  Only European web hosting provider that will be able to guide companies through all of the phases and milestones of their development  Comprehensive range of solutions, from domains to enter

  31. Slide 31: 1&1 IONOS is the undisputed #1 web host in Europe

    1&1 IONOS IS THE UNDISPUTED #1 WEB HOST IN EUROPE AND ONE OF THE LEADING HOSTING PLAYERS GLOBALLY We operate in a global, underserved CA market driving digitalization of #9 small and medium-sized businesses USA 4 #5 Largest European web host with more than UK PL MX #4 8m customers and over 25m domai

  32. Slide 32: Diverse customer segments offering great market potential

    DIVERSE CUSTOMER SEGMENTS OFFERING GREAT MARKET POTENTIAL Small Web Corporates / Prosumers Resellers / MSP Businesses Professionals Enterprises ▪ Hobbyists ▪ Bricks & mortar businesses ▪ IT-savvy experts ▪ IT system houses ▪ Mid to large size companies ▪ Private consumers ▪ Craftsmen ▪ Freelance des

  33. Slide 33: Small businesses with the greatest market potential for future growth

    SMALL BUSINESSES WITH THE GREATEST MARKET POTENTIAL FOR FUTURE GROWTH There is still a lot of untapped small business potential Digitalization of small business market is our great opportunity 125 million small businesses worldwide 56 million small businesses in 1&1 IONOS footprint 8 million custome

  34. Slide 34: Business Applications: Customer contracts

    BUSINESS APPLICATIONS: CUSTOMER CONTRACTS (in million) Abroad Domestic 9.00 8.06 8.11 8.00 +0.05  8.11 million customer contracts (+ 50,000) 7.00  3.86 million domestic 6.00 4.24 4.25 5.00  4.25 million abroad 4.00 3.00 2.00 3.82 3.86 1.00 0.00 31.12.2018 30.06.2019 34 Corporate presentation Octo

  35. Slide 35: Business Applications: Revenues

    BUSINESS APPLICATIONS: REVENUES (acc. to IFRS in € million) 450 443.3 419.3 +24.0 (+5.7%) 400 350  + 5.7 % revenues to € 443.3 million 300  Customer growth 250  Up- und Cross-Selling 200 150 100 50 0 H1 2018 H1 2019 (IFRS 15) (IFRS 16) 35 Corporate presentation October 2019

  36. Slide 36: Business Applications: EBITDA

    BUSINESS APPLICATIONS: EBITDA (acc. to IFRS in € million) 150 148.9 148.3 -0.6  - 0.4 % EBITDA to € 148.3 million (-0.4%)  € - 26.8 million increased marketing expenses (thereof € - 13.7 million one-offs 100 (prior year: € - 6.2 million))  € + 6.5 million IFRS 16 effect 50  33.5 % EBITDA margin

  37. Slide 37: Financial figures for the Group and Outlook 2019

    FINANCIAL FIGURES FOR THE GROUP AND OUTLOOK 2019 37 Corporate presentation October 2019

  38. Slide 38: KPIs H1 2019

    KPIs H1 2019  24.29m customer contracts: + 440,000 in H1 2019 H1 2018 H1 2019 Revenues and earnings figures (in € million) Change (IFRS 15) (IFRS 16) Revenues 2,548.9 2,575.8 + 1.1 %  EBITDA 565.5 630.0 + 11.4 % EBIT 373.8 390.8 + 4.5 % EPS in € 0.91 0.84 - 7.7 % EPS before impairments (1) (in €)

  39. Slide 39: Focus H1 2019

    FOCUS H1 2019  Consumer Access  Acquisition of 5G spectrum  Business Access  Expansion of the fiber optic network  Consumer Applications  Further transformation to data-driven business models  Business Applications  Completion of the rebranding measures on the way to the intended IPO under "

  40. Slide 40: Outlook 2019

    OUTLOOK 2019  We are concretizing our revenue forecast in particular due to the weaker hardware business and the increased demand from existing customers for LTE mobile tariffs during the year  Revenues excl. hardware + approx. 3 %; incl. hardware + approx. 2 % (previously: + approx. 4 %)  Due to

  41. Slide 41: Share and Dividend

    SHARE AND DIVIDEND 41 Corporate presentation October 2019

  42. Slide 42: Share price development

    SHARE PRICE DEVELOPMENT 60 55 50 € 29.80 (30.08.2019) 45 40 35 30 25 2008: Financial 20 crisis € 1.02 (23.3.98) 15 2002: Dotcom 10 bubble bursts 5 0 1998 2001 2004 2007 2010 2013 2016 2019 42 Corporate presentation October 2019

  43. Slide 43: Shareholder return

    SHAREHOLDER RETURN Dividend payments Share buy backs Share capital (cumulative in € million) (cumulative in € million) (in € million) 1200 270 1.000 1000 250 800 800 230 600 600 210 400 400 190 200 200 170 0 0 150  Total dividend payments of  Total of € 1.012 billion for share buy  Capital increa

  44. Slide 44: United Internet AG Our success story continues!

    UNITED INTERNET AG Our success story continues! 44 Corporate presentation October 2019

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