Freenet Ag · XETR:FNTN

Freenet — Q2 2012 Earnings Presentation

15 slides from Freenet's earnings presentation, Aug 8, 2012

  1. Slide 1: Management Presentation Q2/2012 Results

    Management Presentation Q2/2012 Results 8 August 2012

  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 performance, results and timing expressed in

  3. Slide 3: Results reflect value driven approach

    Results reflect value driven approach  Customer ownership grew by 74,000 to 8,230,000 and by 344,000 yoy basis  Postpaid ARPU with 23.5 € on equal level as in first half 2011  Revenue of 742.2 m€ in line with internal expectations and equal to Q1/2012  EBITDA amounts to 85.6 m€  Free Cash Flow

  4. Slide 4: Q2 focus on new marketing campaign and tariff portfolio

    Q2 focus on new marketing campaign and tariff portfolio Q2/2012 Q3 - Q4/2012  New marketing campaign  Segmented go-to-market model across the entire brand launched with promising results and tariff landscape with constant subsidy model and  Successful flat rate portfolio now SIM-only flats availa

  5. Slide 5: New campaign communicates key messages well

    New campaign communicates key messages well Improvement of key qualitative KPIs Research in May 2012 (n = 1.000) shows significantly better results on core messages since the new campaign is live • Consumers understand that mobilcom -debitel delivers best value for money and why • Consumers identify

  6. Slide 6: Management confident about stable customer base in 2012

    Management confident about stable customer base in 2012 Development of the customer base Customer base (million users) Highlights  Customer ownership (postpaid and no-frills Total customer base 15.20 14.74 14.46 segment) grew by 344,000 year on year basis Prepaid customers 7.32 6.58 6.23  On quart

  7. Slide 7: Seasonal comparison shows strong postpaid ARPU

    Seasonal comparison shows strong postpaid ARPU Segment specific ARPU ARPU (€ / month) 23.7 23.4 23.5  Postpaid ARPU stabilises at 23.5 Euro  Data revenue share still growing to 18.9% of postpaid ARPU 4.7 4,0 3.9  Klarmobil 24-month-commitment-plans not 3.1 2.8 2,9 counted in no-frills ARPU explai

  8. Slide 8: Financial statements – income statement (1/2)

    Financial statements – income statement (1/2) In € thousands Q1 – Q2/2012 Q1 – Q2/2011 Q2/2012 Q2/2011 Revenue 1,486,389 1,546,261 742,196 757,450 Gross profit 337,403 335,718 170,551 171,009 EBITDA 170 732 170,732 328¹ 162,328 162 85 640 85,640 83 887² 83,887² Depreciation and amortisation -74,076

  9. Slide 9: Financial statements – income statement (2/2)

    Financial statements – income statement (2/2) In € thousands Q1 – Q2/2012 Q1 – Q2/2011 Q2/2012 Q2/2011 EBT 76,243 42,766 38,677 19,426 Taxes on income 5,973 3,957 2,904 1,393 G Group result lt from f continued ti d operations ti 82 216 82,216 46 723 46,723 41 581 41,581 20 819 20,819 Group result fr

  10. Slide 10: Financial statements – balance sheet

    Financial statements – balance sheet Assets Shareholders‘ equity and liabilities in € million in € million 30.6.2012 31.3.2012 30.6.2012 31.3.2012 452.3 421.0 Intangible assets 1,099.9 Shareholders‘ equity 1,211.9 1 116 9 1,116.9 1,116.9 G d ill Goodwill 662.1 Borrowings 582.8 412.3 426 8 426.8 Trad

  11. Slide 11: Financial statements – cash flow statement

    Financial statements – cash flow statement In € million Q1 – Q2/2012 Q1 – Q2/2011 Q2/2012 Q2/2011 Cash flow from operating activities 130.5 133.8 55.8 57.4 Cash flow from investing activities -4.2 -6.0 -2.6 -2.6 Cash flow from financing activities -225.6 -41.1 -183.4 2.2 Change in cash and cash equi

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

    Detailed bridge from EBITDA to free cash flow Free cash flow bridge Q1-Q2/2012 in € million 170.7 -28.7 28.7 -6.5 -11.0 -0.5 124.0 EBITDA Change in net Capex Tax Other Free cash working capital payments flow FY 340 ~ -50 ~ -20 ~ -30 240 2012e: 12 | Management Presentation | August 2012

  13. Slide 13: Guidance 2012 and outlook 2013 – Continuation of the current strategy

    Guidance 2012 and outlook 2013 – Continuation of the current strategy Results 2011 Guidance 2012 Outlook 2013 C t t customer Contract t base b -366,000 366 000 customers t Postpaid p ARPU Stable at 23.8 € Group revenue 3.22 bn€ Group EBITDA 337.4 m€ 340 m€ 340 m€ Free cash flow (FCF)1 241.0 m€ 240 m

  14. Slide 14: Summary

    Summary  The second quarter of 2012 underlines freenet’s strong competitive position in the German market  Main value drivers such as customer base and ARPU develop positively  New marketing campaign improves brand perception and awareness  New price points introduced with focus on keeping absol

  15. Slide 15: freenet AG Investor Relations contact

    freenet AG freenet AG Hollerstraße 126 Investor Relations 24782 Büdelsdorf +49 (0)40 51306 778 www.freenet-group.de investor.relations@freenet.ag

freenet — Q2 2012 Earnings Presentation on 6ix