Freenet Ag · XETR:FNTN
Freenet — FY2015 Earnings Presentation
27 slides from Freenet's earnings presentation, Mar 3, 2016
Slide 1: Management Presentation: Preliminary results for FY 2015
Management Presentation Preliminary results for FY 2015 Christoph Vilanek, CEO and Joachim Preisig, CFO March, 2016 | Analyst and Investor Conference 1 | Preliminary results for the financial year 2015 | 3 March 2016
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: freenet Group management
freenet Group management Today’s speakers 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 telecommunication with Group
Slide 4: Key achievements met or exceeded in financial year 2015
Key achievements met or exceeded in financial year 20151 Customer Ownership increased continuously for more than five years in a row and has exceeded its targeted subscriber development Postpaid ARPU stabilised on previous years’ level (21.4 euros) Revenue improved by 2.5 per cent yoy basicall
Slide 5: Preliminary key figures 2015 demonstrate strong performance
Preliminary key figures 2015 demonstrate strong performance Financial targets reached and also exceeded [in EUR million] Group revenue Gross profit Group EBITDA Free cash flow +2.5% +1.6% +1.3% +6.7% 3,117.9 790.4 284.5 3,040.6 778.1 266.6 365.6 370.2 2014 2015 2014 2015 2014 2015 2014 2015 Group re
Slide 6: Strong development in Customer Ownership (+376,000 yoy)
Strong development in Customer Ownership (+376,000 yoy) Mainly driven by further growth of the postpaid customer base (+298,000 yoy) [in million] 31.12.2015 30.09.2015 30.06.2015 31.12.2014 Improvement of customer ownership (+376,000 yoy) based on strong rise in postpaid customers (+298,00
Slide 7: ARPU reflects acquisition of high-value customers
ARPU reflects acquisition of high-value customers Postpaid-ARPU even increasing in the last two quarters of 2015 vs. 2014 [EUR/month] +0.20 2014 -0.10 2015 -0.10 +0.20 Postpaid ARPU No frills ARPU Prepaid ARPU Stabilisation at 21.4 euros on previous’ 0.3 euros lower yoy due to sustained Slight
Slide 8: Financial statements: Income statement
Financial statements Income statement [in EUR million] 20151 2014 Q4 20151 Q4 2014 Revenue 3,117.9 3,040.6 826.8 833.7 Gross profit 790.4 778.1 215.6 210.8 EBITDA 370.2 365.6 97.8 96.3 Depreciation and amortisation -71.4 -64.4 -18.8 -16.7 EBIT 298.8 301.2 78.9 79.6 Interest result -44.1 -40.6 -14.9
Slide 9: Financial statements: Balance sheet insight
Financial statements Balance sheet insight1 [in EUR million] net debt (financial debt less liquid assets) declined yoy by 57.5 million euros to 369.2 million euros (2014: 426.6 million euros) accordingly, debt ratio is running at the lower end of the range of 1.0 to 2.5 as targeted: 2015: 1.0 (2
Slide 10: Financial statements: Cash flow
Financial statements Cash flow [in EUR million] 20151 2014 Q4 20151 Q4 2014 Cash flow from operating activities 314.9 294.5 77.8 64.8 Cash flow from investing activities -28.5 -70.4 -8.3 -8.8 thereof net capex -30.4 -27.9 -10.7 -9.2 Cash flow from financing activities -128.7 -222.9 -3.4 -5.6 Change
Slide 11: Detailed Bridge from EBITDA to free cash flow
Detailed Bridge from EBITDA to free cash flow Q1 – Q4 20151 [in EUR million] -10.3 -44.3 -30.4 0.6 370.2 284.5 EBITDA Change in net Tax payments Capex Other Free cash flow working capital FY 2015e 370 - 25 - 40 - 25 0 280 1) Preliminary figures 11 | Preliminary results for the financial year 2015 |
Slide 12: Shareholder structure
Shareholder structure Major shareholders of freenet AG As of 15 February 2016 * Including attributions according to German Securities Trading Act ** The free float according to Deutsche Börse AG amounts to 89.61% 12 | Preliminary results for the financial year 2015 | 3 March 2016
Slide 13: Most personal device, most emotional product, most powerful sales engine
We combine the most PERSONAL DEVICE with the most EMOTIONAL PRODUCT and the most POWERFUL SALES ENGINE! 13 | Preliminary results for the financial year 2015 | 3 March 2016
Slide 14: Executive Summary
Executive Summary freenet enters a new strategic arena: the fast growing market of moving pictures The approach is in sync with freenet’s core competencies: light infrastructure, omni-channel sales expertise, application of sophisticated business intelligence and big data freenet continues to focus
Slide 15: freenet enters a new strategic arena: The moving pictures market
freenet enters a new strategic arena: The moving pictures market! Since 2010 Now! To come… 1) Digital Lifestyle Organic Anorganic Full HD and 4K MOBILE eBooks Own 8K ONLY Audiobooks linear/ Games digital Virtual Reality Music TV- Traction in digital TV access Real Online Gaming offer 1) as f
Slide 16: From Q3 2016 freenet provides TV – no matter where you are
From Q3 2016 freenet provides TV – no matter where you are! Programming Freenet owns key pre-requisites A A High-volume fixed infra- structure allowing mass Non- Maximum linear and non- market linear and non- linear linear capacity! linear video feeds also Product integration in prime time, exte
Slide 17: freenet creates a holistic experience with full customer insight
All providers aim for customers through independent products – freenet creates a holistic experience with full customer insight Set-top box What is the most personal device? provider Your smartphone! Consumer What is the most emotional product? equipment Your TV! provider We combine the most persona
Slide 18: freenet becomes a relevant partner of TV-channels and content providers
freenet becomes a relevant partner of TV-channels and content providers! Programming freenet will be recognized as a holistic experience provider A A Superior quality fiber platform with almost Non- unlimited TV bandwidth linear and 1to1 adressing capability to each individual home B DVB-T2 infrastr
Slide 19: Those two acquisitions make freenet a strategic leader
Those two acquisitions make freenet a strategic leader! Trusted and well respected infrastructure Provider of the first fully integrated platform WHO? provider in the video and audio broadcasting for IP entertainment services based on a value chain dedicated, owned fiber backbone Targeting use
Slide 20: For broadcasters both platforms are highly attractive
For broadcasters both platforms are highly attractive! Broadcasters … and therefore DVB-T2 benefit from … have a …financial impact Successful with DVB-T for fundamental more than 10 years step- Securing household reach and thereby advertising revenues interest to changing technology DVB T2 …lasting
Slide 21: Smartphone and remote-controlled TV embed the potential of Smart Home
The combination of smartphone and remote-controlled TV embeds the potential of "Smart Home" Our disruptive service opens doors for future growth SMART HOME Getting in charge of customers’ key devices to controll and manage the TV Smart Home 21 | Preliminary results for the financial year 2015 | 3 Ma
Slide 22: We continue our proven equity story
We continue our proven equity story… Shareholder value Focus on… leads to… Financial KPIs maximization Subscription Sustainable Share of Long-term Balancing revenues planable, longtail recurring value high business! revenues generation dividends Customer Maximized SACs High and ownership CLTV! SRCs
Slide 23: Improved 2016 guidance and clear statement about dividend
Improved 2016 guidance and clear statement about dividend Customer Postpaid Group Group Free cash flow Dividend ownership ARPU revenue EBITDA (FCF)1 payout Guidance > 400.0 m€ ~300.0 m€ 1.60 €/share² 2016 Preliminary results + 376,000 21.4 € 3,117.9 m€ 370.2 m€ 284.5 m€ 1.55 €/share 3 2015 Guidance
Slide 24: Key indicators remain unchanged
Key indicators remain unchanged Financial management and dividend policy Results Prelims Target Definition of financial key 2014 2015 2015/2016 indicators Debt factor 1.2 1.0 1.0 – 2.5 Debt factor: ratio of Interest cover 9.0 8.4 >5 economic net debt to EBITDA Equity ratio 51.8% 50.6% >50% Inter
Slide 25: Intelligent financing – primarily for refinancing and growth purposes
Intelligent financing – primarily for refinancing and growth purposes Placing of promissory note loan totaling 560 million euros at investment grade terms Improvement of financial structure Use of funds saving of 22.2 million euros through coupon reduction refinancing of corporate bond maturing
Slide 26: Optimising the credit profile – transaction details
Optimising the credit profile – transaction details [in EUR million] Instruments and maturity profile New Issuance of Promissory Notes in February 2016 Signing on 23 February 2016 Payout with its value as at 3 March 2016 Investment Grade Structure and Pricing Amount: EUR 560 million, due in
Slide 27: Investor Relations contact
Hollerstrasse 126 Investor Relations 24782 Büdelsdorf +49 (0) 40 513 06 778 www.freenet-group.de investor.relations@freenet.ag 27 | Preliminary results for the financial year 2015 | 3 March 2016