Freenet Ag · XETR:FNTN
Freenet — Investor Presentation (September 2010)
16 slides from Freenet's investor presentation, September 2010
Slide 1: Management Presentation
Management Presentation September 2010
Slide 2: freenet's focus is on mobile and portal services
freenet’s focus is on mobile and portal services freenet AG Mobile Services Portal Services Mobile Service Providing (MSP) Established internet portal - (Regulated) Service providing postpaid and - Good usage prepaid (Top 10 in Germany1) - Reselling - No Frills - 6.88 million active registered m
Slide 3: Quality management still in focus of freenet activities
Quality management still in focus of freenet activities … Q1 Q2 2nd half 2010 More than 1 million new 908,000 new customers New customer acquisition customers acquired acquired due to aggressive under ongoing price price offers in the market pressure; continuation of More than 100,000 SAC an
Slide 4: Following the defined strategy for the entire freenet Group
… following the defined strategy for the entire freenet Group Focus on mobile communications and mobile internet as core businesses Exploitation of portal competence and participation in relevant new market trends (e.g. apps) Clear focus on long-term profitability and deliberately refrain from
Slide 5: Q2 achievements support freenet's potential
Q2 achievements support freenet´s potential Growth in new customers for mobile internet and increase of freenet mobile traffic Q2 highlights to more than 4 million PIs per month Launch of the distribution of the iPhone 3 and 4 Launch of the Retail+ programme to strengthen own retail chain (int
Slide 6: Consolidation of IT systems from 2 to 1 system ongoing
Consolidation of IT systems from 2 to 1 system ongoing IT integration Steps in detail Intelligent IT platform Step-by-step reduction of complexity and costs Reduce IT systems from 3 to 1 Project structure to minimise risks Preliminary review and business Draw up a consistent operating concep
Slide 7: Stable freenet postpaid ARPU despite massive price drops in the market
Stable freenet postpaid ARPU despite massive price drops in the market In € 90 80 VOD Flat 80 € Price erosion with flat rates O2 Genion XL 75 € E-Plus 70 BASE 5 75 € O2 Genion/O2 o price down to 45 € per month (from 75 €), no 60 O2 o cost airbag 60 € commitment VOD Flat 50 € 50 O2 o cost airbag 50
Slide 8: Growing data revenue share in price eroding market
Growing data revenue share in price eroding market Data access – SIM only Data stick (SIM only) 34.95 € Competition also in data leads to 29.95 € significant price drops 24.95 € Currently no visible trend towards 19.95 € premium access for premium prices as in other countries 9.95 € freenet st
Slide 9: Top results in "Bild" test report (22 June 2010)
Top results in “Bild” test report (22 June 2010) “Friends&Family“: klarmobil, Rank 1 “Volume callers”: mobilcom-debitel, Rank 2 “Normal usage&internet”: freenet mobile, Rank 1 Source: Bild (national edition), 22 June 2010, “Billiger telefonieren mit dem Handy“, total number of printed copies: 3,805,
Slide 10: Recent aggressive offer by 1&1 further diluting value
Recent aggressive offer by 1&1 further diluting value 1&1 sets new pricemark of 39.90 € for full flat including unlimited data access Current promotion even drives prices down to 35 € Offer available online/direct only – resulting margin limits access to indirect channels 10 | Management Prese
Slide 11: Recent format tests in own retail channel indicate performance upside
Recent format tests in own retail channel indicate performance upside All HW available in the store (no dummies) Hardware HW offer for direct purchase or These tests are part of the Retail+ on instalments programme Local advertising and on street Over the testphase all 4 tests Footfall pro
Slide 12: Key figures Q2/2010
Key figures Q2/2010 [in € million] EBITDA Revenue Gross profit EBITDA EBT Group result recurring 891.8 838.2 188.1 195.5 70.4 88.2 93.3 95.0 28.7 0.0 9.4 23.6 Q2/2009 Q2/2010 Q2/2009 Q2/2010 Q2/2009 Q2/2010 Q2/2009 Q2/2010 Q2/2009 Q2/2010 Q2/2009 Q2/2010 adjusted1 adjusted1 adjusted1 adjusted1 adjus
Slide 13: freenet stabilized ARPU in challenging market environment
freenet stabilized ARPU in challenging market environment Postpaid ARPU (€ / month) 26.3 freenet delivered stable postpaid ARPU YOY against an ongoing price erosion in -2.0 the market 24.3 -0.1 24.2 Restrictive renewal management and new acquisition with positive CLTV improves customer quality Q
Slide 14: Postpaid customer base burdened by lower gross adds
Postpaid customer base burdened by lower gross adds Postpaid customer base (million users) Focus on quality customers takes place at 7.264 the expense of new customer growth Recent price competition might further limit customer acquisition under the 6.840 6.605 positive CLTV paradigm Postpaid
Slide 15: Net debt further reduced in Q2/2010
Net debt further reduced in Q2/2010 [in € million] 1,436.3 132.5 Cash and cash equivalents 1,270.1 480.3 Cash and cash equivalents 907.7 839.6 207.1 143.5 Q2/2010 burdened by Cash and cash Cash and cash negative working capital equivalents equivalents effects 1,303.8 789.8 700.7 696.1 Unschedule
Slide 16: For any questions please contact
For any questions please contact: Andreas Neumann Head of Investor Relations +49 (0)40 513 06-778 ir@freenet.ag 16 | Management Presentation | September 2010