1&1 Ag · XETR:1U1

1&1 — 1&1 Drillisch — Non-Deal Roadshow (January 2019)

19 slides from 1&1's roadshow presentation, Jan 25, 2019

  1. Slide 1: 5G Rationale

    5G Rationale 1

  2. Slide 2: Disclaimer

    Disclaimer This presentation contains statements and forecasts related to future developments; they express the current assessments of the 1&1 Drillisch AG management. These assessments and statements may be subject to changes and/or uncertain general conditions which, in the majority of cases, are

  3. Slide 3: Agenda

    Agenda  German mobile market  Spectrum auction 2019  Evolution of the business model of 1&1 Drillisch  Our assets for a 5G network build  Our roadmap 3

  4. Slide 4: German Mobile Market

    German Mobile Market Total subcribers in million Postpaid subcribers in million MNO: 11,6 8,9 9,5 8,9 MBA MVNO: 43,6 43,0* MSP: 22,0* 25,2 1&1 DRI DTE VOD TEF D FNT 29,7 17,9 Allocation of current frequencies 700 MHz 800MHz 900 MHz 1.5 GHz 1.8 GHz 2.1 GHz 2.1 GHz 2.6 GHz 2.6 GHz 2.6 GHz FDD FDD FDD

  5. Slide 5: Status quo 1&1 Drillisch

    Status quo 1&1 Drillisch  We are already excellently positioned today  Approx. 4.5 million DSL customers  Increasingly on Layer-2, based on the 1&1 Versatel fiber network  Approx. 9 million Mobile customers  Vodafone MVNO  TEF D MBA MVNO – remedy taker  TEF D MVNO – former 1&1/E-Plus contract

  6. Slide 6: Spectrum auction 2019

    Spectrum auction 2019  Available spectrum in the upcoming auction (usage right until 2040) 1920 MHz 5 5 5 5 5 5 5 5 5 5 5 5 1980 MHz 2 GHz 2110 MHz 5 5 5 5 5 5 5 5 5 5 5 5 2170 MHz 3400 MHz 10 10 10 10 10 10 10 10 10 10 3600 MHz 10 10 10 10 10 10 10 10 10 10 3.6 GHz 3600 MHz 10 10 10 10 10 10 10 10

  7. Slide 7: Spectrum auction 2019 – Coverage requirements

    Spectrum auction 2019 – Coverage requirements  98% of households in each German Federal State with  Other Federal highways with 100 Mbit/s (min.) and 10 minimum 100 Mbit/s ms latency (max.) between base station and device  Freeways and Federal highways with connection function  Highways/ state r

  8. Slide 8: History and business model of 1&1 Drillisch

    History and business model of 1&1 Drillisch  1&1 Drillisch has continuously developed its business model over more than two decades 8

  9. Slide 9: Successful development of the business model

    Successful development of the business model MSP Model MVNO Model MBA MVNO Model MNO Model  1998–2005:  Marketing of own products  Long-term guaranteed access  Increase customer approach Reseller of (MNO) based on standardised and to all current and future  Economic independence mobile products

  10. Slide 10: Our assets for a 5G network build

    Our assets for a 5G network build  In 2021 1&1 Drillisch expects to own approx. 16 million customer contracts (Mobile + DSL)  Internalization of wholesale fees currently paid to service providers offers significant cost savings  With 1&1 we have an excellent and nationwide known brand with a comp

  11. Slide 11: United Internet – Access value chain

    United Internet – Access value chain 11

  12. Slide 12: Our assets for a 5G network build (cont'd)

    Our assets for a 5G network build (cont‘d)  We address the entire German market B2B/Large corporates High profile customers Entry segment and discount brands 12

  13. Slide 13: Our roadmap

    Our roadmap 1) Independence from MNO and margin uplift  Substitution of variable cost with own fixed-cost will allow better fixed cost leveraging and drive margin upside  Business model becomes independent from wholesale access on MNO network 2) Better product differentiation  Superior 5G technol

  14. Slide 14: Our roadmap for a potential network build-out

    Our roadmap for a potential network build-out 1 st step: Participation in the spectrum auction 2 nd step: Negotiate and agree National roaming 3 rd step: Network build-out phase 1 4 th step: Potential further participation in the next spectrum bid, expected for 2024/2025 5 th step: Network build-out

  15. Slide 15: Our roadmap – Network infrastructure & design

    Our roadmap – Network infrastructure & design  1&1 Drillisch will close a service contract with an infrastructure provider to plan, develop, build and run an up-to-date, powerful and innovative mobile network for the exclusive use of 1&1 Drillisch (no joint venture)  Superior 5G performance with n

  16. Slide 16: Our roadmap – National roaming

    Our roadmap – National roaming  National Roaming is an essential prerequisite for the business case during the build-out phase  MNOs have to negotiate National Roaming, based on the current spectrum auction framework  BNetzA (Federal Network Agency) will act as a referee – additional non- discrim

  17. Slide 17: Our roadmap – Additional revenue streams and cost savings

    Our roadmap – Additional revenue streams and cost savings  Fixed wireless access  Additional FWA contracts from customers with no fixed-line connection or lower bandwidth connection (hybrid products/bonding)  Conversion of existing DSL customers from 2021 onwards  Higher market share with increa

  18. Slide 18: Our roadmap – External view on IoT potential

    Our roadmap – External view on IoT potential  IoT will deliver additional upside potential via increasing penetration of Connected devices (in billion)1 35 non-communication devices (i.e. smart metering, smart household appliances) 30 25  1.8 billion IoT devices with cellular Wide-area IoT 20 conn

  19. Slide 19: It's already good today – and it can just get better

    It‘s already good today – and it can just get better 19

1&1 Drillisch — Non-Deal Roadshow (January 2019) on 6ix