Freenet Ag · XETR:FNTN
Freenet — Q2 2018 Earnings Presentation
24 slides from Freenet's earnings presentation, Aug 9, 2018
Slide 1: Management Presentation Q2 2018 results
Management Presentation Q2 2018 results Christoph Vilanek, CEO and Joachim Preisig, CFO 09 August 2018 | Analyst and Investor Conference Call 1 | Management Presentation Q2 2018 | 09 August 2018
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
Slide 3: Positive 1st half year 2018 performance
Positive 1st half year 2018 performance ▪ +5.4 per cent yoy in group revenue before IFRS 15 and +3.8 per cent yoy in recurring EBITDA ▪ All operational and qualitative KPI targets achieved Group ▪ Financial investment Sunrise with good performance ▪ New strategic investment in CECONOMY closed ▪ 2 ne
Slide 4: Postpaid net adds in Q2 2018 amount to approx. 60,000
Postpaid net adds in Q2 2018 amount to approx. 60,000 [in million] 9.59 9.60 9.59 9.60 9.57 6.83 6.77 6.71 6.65 6.56 Q2 2017 Q3 2017 Q4 2017 3.03 2.95 2.88 2.83 2.74 Q1 2018 Q2 2018 Postpaid No frills Customer Ownership Key drivers ▪ Continued improvement of customer structure based on increase of p
Slide 5: Most important postpaid ARPU stable
Most important postpaid ARPU stable [EUR/month] 2018 2017 2016 Postpaid 21.6 21.7 21.5 21.4 21.4 21.4 21.5 21.1 Q1 Q2 Q3 Postpaid ARPU 21.5 euros. Data revenue share at 35.5 per cent. No-frills Prepaid 3.5 3.4 2.4 2.7 3.1 3.1 Q2 Q2 No-frills ARPU 3.5 euros as a consequence of offer policy Prepaid AR
Slide 6: Digital Lifestyle revenues constantly increasing
Digital Lifestyle revenues constantly increasing [in EUR million] 49.0 41.0 42.6 42.4 36.3 37.9 Strong performance ▪ + 4.5 million euros or + 12 per cent year on year Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Main drivers 164.2 ▪ Increasing focus on entertainment 137.1 products namely freenet
Slide 7: freenet TV outlook 1.2 million paying user including Satellite
freenet TV outlook 1.2 million paying user including Satellite Paying user and RGU DVB-T2 HD >1,200,000 ▪ Total revenues 13.3 million euros 1,138,000 during Q2 1,022,000 ▪ Paying user growing to 1.1 million 975,000 > 1.0 mio. RGU Sat > 2.5 3 > 2.5 ▪ Initial shipments of respective CI+ 1,001,000 945,
Slide 8: waipu.tv massively broadened its technical reach in Q2 2018
waipu.tv massively broadened its technical reach in Q2 2018 Aside of Android and iOS apps serving Google Chromcast and Amazon Fire, waipu.tv is now available on four more platforms • iPad • Android Tablet • Fire Tablet • Web-Client (Browser-Version) Apple TV as well as direct access to Samsung is pl
Slide 9: Proof of best quality service with low latency technology
Proof of best quality service with low latency technology Goal waipu.tv faster than cable and other IPTV Deliver „the fastest“ goal during world championship Delay in delivery by access technology ARD ZDF Sat SD 0 0 Sat HD 0.5 0.5 waipu.tv HD* 2.3 2.3 DVB-T 2 HD 4.5 2.5 Kabel HD 6.5 6.0 Telekom Ente
Slide 10: Successful launch of on-demand-content as linear channel
Successful launch of on-demand-content as linear channel waipu.tv can take any content into its CMS and delivers it as a live-channel with the option for the consumer to switch into demand mode to select program and/ or series. Brainpool is one of the most successfull comedian, sit-com and fun-serie
Slide 11: Uptake of registered as well as paying users accelerates
Uptake of registered as well as paying users accelerates Total registered and paying user Q2 2018 performance ▪ By the end of Q2 waipu.tv has >1 Mio. attracted more than 824,000 registered user >1,000,000 ▪ Out of those 174,000 have decided 608,800 824,000 for a paid service ▪ For the first time rea
Slide 12: Strategic Participation in CECONOMY AG
Strategic Participation in CECONOMY AG Transaction details ▪ Capital increase of 10.0 per cent resulting in a stake of 9.1 per cent (32,633,555 ordinary bearer shares) ▪ Purchase price of 8.50 EUR per share (level of the ABB-announcement date) results in 277 million euros Rationale ▪ Strategic inves
Slide 13: Financial statements – Income statement information
Financial statements – Income statement information [in EUR million] 1st half 2018 1st half 2017 Q2 2018 Q2 2017 The increase in Group revenue without the effect of IFRS 15 by Revenue without the effect of IFRS 15 1,767.7 1,677.2 894.0 839.2 54.8 million euros to 894.0 million Revenue 1,386.2 1,677.
Slide 14: Split of the financials into the relevant segments
Split of the financials into the relevant segments [in EUR million] Revenue Gross profit EBITDA -17.3% -2.8% +7.3% 1,677.2 Group 1,386.21 458.6 445.8 224.42 209.3 -18.5% +0.2% +0.8% 1st half 2018 Mobile 1,519.8 1,238.21 1st half 2017 Communications 354.1 354.8 201.52 200.0 -0.5% -13.9% +103.2% TV an
Slide 15: Financial statements – Balance sheet information
Financial statements – Balance sheet information [in EUR million] Assets Shareholders‘ equity and liabilities 30.06.2018 31.03.2018 30.06.2018 31.03.2018 Intangible assets 552.5 542.9 Shareholders' 1,327.0 equity 1,473.6 1,379.9 1,379.9 Goodwill Borrowings 224.0 261.6 1,674.9 1,672.7 246.4 Trade acc
Slide 16: Financial statements – Cash flow information
Financial statements – Cash flow information [in EUR million] 1st half 2018 1st half 2017 Q2 2018 Q2 2017 Cash flow from operating activities decreased in Q2/2018 by 9.6 million euros to 123.6 million Cash flow from operating 189.4 211.5 123.6 133.2 euros yoy mainly due to the activities increase in
Slide 17: Detailed bridge from EBITDA to free cash flow
Detailed bridge from EBITDA to free cash flow Q1 – Q2 2018 [in EUR million] 224.4 -30.8 165.8 -14.4 -7.0* -23.5 -19.7 36.9 EBITDA Change in net Tax payments Capex Sunrise EBITDA Sunrise other Free cash flow working capital (no cash) dividends FY 2017 541.2 -25.6 -30.1 -42.5 -133.2 34.4 -1.4 342.8 FY
Slide 18: freenet AG financial guidance 2018 & perspective 2019
freenet AG financial guidance 2018 & perspective 2019 Group Group Dividend Free cash flow (FCF)1 revenue4 EBITDA payout Perspective 50-75% 2019 of FCF incl. Sunrise Guidance 410 - 430 m€2 290 - 310 m€3 50-75% 2018 (+ Sunrise) (+Sunrise) of FCF incl. Sunrise Results 408.0 m€ 308.4 m€ 3,507.3 m€ (incl
Slide 19: freenet AG KPI guidance 2018 & perspective 2019
freenet AG KPI guidance 2018 & perspective 2019 Mobile waipu.tv freenet TV Communication Customer Postpaid Total User Paying User Paying User ARPU1 ownership ARPU Perspective 2019 Guidance > 250,000 > 1,200,000 2018 Results +60,000 21.4 € 464,0002 102,000 975,000 4.3 € 2017 Guidance 2017 > 500,000 >
Slide 20: freenet Group management
freenet Group management We are looking forward to your questions Christoph Vilanek, CEO Joachim Preisig, CFO ▪ CEO of freenet AG ▪ CFO of freenet AG since 2009 since 2010 ▪ Management positions at ▪ CFO of debitel AG since debitel AG since 2005 2006 ▪ Consultant for ▪ CFO of T-Mobile / telecommunic
Slide 21: Appendix
Appendix 21 | Management Presentation Q2 2018 | 09 August 2018
Slide 22: About CECONOMY AG
About CECONOMY AG ▪ CECONOMY acts as a platform that brings together various businesses in the area of Consumer Electronics ▪ Operational business is handled by several brands, with the main focus on MediaMarktSaturn Retail Group with its brands MediaMarkt and Saturn ▪ EBITDA of 704 million euros in
Slide 23: Overview over current financing and maturity structure
Overview over current financing and maturity structure Average financing cost below 2.0 per cent p.a. [in EUR million] Issue Instrument Volume Maturity Promissory notes Promissory Syndicated bank loan 2012 54.5 m€ 2019 note 610.0 Promissory 2015 100 m€ 2020, 2022 note 2016 Promissory 443.0 560 m€ 20
Slide 24: Thank you.
Thank you. Hollerstrasse 126 Investor Relations 24782 Büdelsdorf +49 (0) 40 513 06 778 www.freenet-group.de investor.relations@freenet.ag 24 | Management Presentation Q2 2018 | 09 August 2018