Freenet Ag · XETR:FNTN

Freenet — Q2 2016 Earnings Presentation

21 slides from Freenet's earnings presentation, Aug 11, 2016

  1. Slide 1: Management presentation Q2 2016 results

    Management presentation Q2 2016 results Christoph Vilanek, CEO and Joachim Preisig, CFO 11 August 2016| Analyst and Investor conference call 1 | Management presentation Q2 2016 results | 11 August 2016

  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: Key achievements in Q2 2016

    Key achievements in Q2 2016  Significant growth in Customer Ownership by 50,000 in Q2 2016 (+313,000 yoy) mainly driven by strong increase of valuable postpaid customers by 39,000 (+232,000 yoy)  Continued stabilisation of postpaid ARPU – currently at 21.4 euros and stable yoy; slight decrease of

  4. Slide 4: Further growth in Customer Ownership (+3.4 per cent)

    Further growth in Customer Ownership (+3.4 per cent) [in million] 9.42 9.37 9.30 6.36 6.39 9.21 6.31 6.23 9.11 Q2 2016 6.16 2.99 3.01 3.02 Q1 2016 2.94 2.97 Q4 2015 Q3 2015 Q2 2015 Postpaid No frills Customer Ownership  Improvement of customer ownership driven by disproportionate increase of postpa

  5. Slide 5: ARPU stabilisation confirms focus on valuable customer relations

    ARPU stabilisation confirms focus on valuable customer relations [EUR/month] -0.50 -0.10 -0.10 +0.20 +0.20 +0.40 0.00 Q2 2015 21.9 Q2 2016 21.6 21.7 21.5 21.4 21.5 21.4 21.4 21.2 21.3 21.1 21.1 21.1 21.1 3.0 3.1 2.6 2.4 Q4 2013 to Q1 2014 to Q2 2014 to Q3 2014 to Q4 2014 to Q1 2015 to Q2 2015 to No

  6. Slide 6: Core business continues to perform according to our internal plan

    Core business continues to perform according to our internal plan  Overall satisfying performance in all channels concerning gross adds and renewals Channels  Year-on-year increase in brick and mortar with 50/50 share of new and existing customers  Online very price sensitive due to ongoing compe

  7. Slide 7: DVB-T2 preparation goes with full speed

    DVB-T2 preparation goes with full speed  38 out of 61 DVB-T2 locations in pilot operation up and running  6 channels in full HD transmission running  Coverage of 24 million users via room antenna and 55 million via roof antenna  freenet TV connect (HbbTV based on demand platform) in beta testing

  8. Slide 8: IPTV platform about to launch in September

    IPTV platform about to launch in September  Nationwide Beta test running since mid May, currently around 1,000 users  App approved by Google Play store and Apple App store  Contracts with relevant content providers signed, about 100 channels planned in Q4  Peering contracts signed with Deutsche

  9. Slide 9: Shareholding in Sunrise Communications Group AG

    Shareholding in Sunrise Communications Group AG  Shareholding in Sunrise increased by 0.73% (former Sunrise Management shares) - from 23.83% to actually 24.56% in April 2016  Sunrise dividend pay-out – Cash inflow of 30.1 million euros in April 2016; resulting in an increase of operating cash flow

  10. Slide 10: Financial statements: Income statement

    Financial statements Income statement [in EUR million] Revenue improved by 55.1 m€ due 1st half 2016 1st half 2015 Q2 2016 Q2 2015 to stable mobile communications business, rise in valuable DLS Revenue 1,556.9 1,501.0 807.7 752.5 revenue and contribution from new segment “TV and Media” Gross profit

  11. Slide 11: Key performance indicators and segment overview

    Key performance indicators and segment overview [in EUR million] Revenue Gross profit EBITDA Free cash flow +3.7% +9.1% +10.8% +32.6% 1,556.9 180.8 Group 1,501.0 412.1 194.0 377.8 175.1 136.3 -0.6% +0.1% +3.2% 1,473.6 Mobile 1,465.2 353.2 353.6 189.41 183.5 1st half 2016 TV and 78.0 Media 37.3 1st h

  12. Slide 12: Financial statements: Balance sheet

    Financial statements Balance sheet [in EUR million] Assets Shareholders‘ equity and liabilities 30.06.2016 31.03.2016 30.06.2016 31.03.2016 Intangible assets 1,006.3 Shareholders' 1,426.9 987.8 1,273.9 equity Goodwill 1,374.3 Borrowings 1,372.9 1,730.9 1,914.7 Trade accounts 483.5 receivable 464.1 5

  13. Slide 13: Current debt ratio inside the target range between 1.0 – 2.5

    Current debt ratio inside the target range between 1.0 – 2.5 [in EUR million] Debt ratio 1.0 2.2 2.3 898.0 805.0 Net debt 369.2 31.12.2015 31.03.2016 30.06.2016 1) Net debt is defined as financial debt minus cash and cash equivalents minus market value of freenet’s share in Sunrise Communication Gro

  14. Slide 14: Financial statements: Cash flow

    Financial statements Cash flow [in EUR million] Cash flow from investing 1st half 2016 1st half 2015 Q2 2016 Q2 2015 activities at -39.7 m€ mainly due to pay out of 22.1 m€ for a further Cash flow from operating share capital of 0.73 per cent in 205.5 151.2 133.6 80.7 activities Sunrise. Cash flow f

  15. Slide 15: Detailed Bridge from EBITDA to free cash flow

    Detailed Bridge from EBITDA to free cash flow Q1 – Q2 2016 [in EUR million] 194.0 6.5 180.8 -18.8 -0.3 -24.7 -6.1 30.0 EBITDA Change in net Tax payments Capex Sunrise EBITDA Sunrise Other Free cash flow working capital (no cash) dividends FY 2015 370.2 - 10.3 - 44.3 - 30.4 - 0.6 284.5 FY 2016e >400

  16. Slide 16: Guidance 2016 confirmed and clear dividend pay out statement

    Guidance 2016 confirmed and clear dividend pay out statement Customer Postpaid Group Group Free cash flow Dividend ownership ARPU revenue EBITDA (FCF) 1 pay out Guidance 2016 > 400.0 m€ ² ~300.0 m€ 3 1.60 €/share 4 Results 2015 + 376,000 21.4 € 3,117.9 m€ 370.2 m€ 284.5 m€ 1.55 €/share 5 Guidance 20

  17. Slide 17: freenet Group management

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

  18. Slide 18: Thank you.

    Thank you. Hollerstrasse 126 Investor Relations 24782 Büdelsdorf +49 (0) 40 513 06 778 www.freenet-group.de investor.relations@freenet.ag 18 | Management presentation Q2 2016 results | 11 August 2016

  19. Slide 19: BACK UP

    BACK UP 19 | Management presentation Q2 2016 results | 11 August 2016

  20. Slide 20: Shareholder structure

    Shareholder structure Major shareholders of freenet AG As of 11 August 2016 Other shareholders/freefloat** 85.59% Flossbach von Storch AG * 5.55% 5.16% Allianz Global Investors Europe GmbH* 3.70% The Capital Group Companies, Inc.* * Including attributions according to German Securities Trading Act 8

  21. Slide 21: Refinancing against the background of the acquisitions

    Refinancing against the background of the acquisitions [in EUR million] Promissory notes tranche 1 tranche 2 tranche 3 2015 (fix) (fix) (var.) Volume 50.0 25.0 25.0 Interest rate p.a. 1.79% 1.33% 1.05% Maturity 2022 2020 2020 Promissory notes tranche 1 tranche 2 tranche 3 tranche 4 tranche 5 Bank lo

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