United Internet Ag · XETR:UTDI

United Internet — Non-Deal Roadshow (September 2020)

41 slides from United Internet's roadshow presentation, Sep 14, 2020

  1. Slide 1: United Internet AG Corporate presentation September 2020

    UNITED INTERNET AG Corporate presentation September 2020 1 Corporate presentation September 2020

  2. Slide 2: Business Areas: Access & Applications

    2 BUSINESS AREAS: ACCESS & APPLICATIONS ACCESS APPLICATIONS Motivated team  9,450 employees, of which approx. 3,000 in product management, development and data centers Networks Sales strength Content  More than 5 million contracts p. a.  50,000 registrations for free services every day Operationa

  3. Slide 3: Current Group Structure

    CURRENT GROUP STRUCTURE 1&1 Drillisch AG ≤25% ≥75% shareholders Consumer Business Consumer Business UI Ventures Access Access Applications Applications 100% 100% 100% 66.66% 30.70% 25.39% 27.42% Additional listed investment: Tele Columbus AG (29.90%) 3 Corporate presentation September 2020

  4. Slide 4: KPIs H1 2020

    KPIs H1 2020  More than 25 million customer contracts for the first time (+ 460,000 to 25.20 million contracts) Revenues and earnings figures (in € millions) H1 2019 H1 2020 Change Revenues 2,556.5 2,657.9 + 4.0 % EBITDA 630.0 620.5 - 1.5 % EBIT 390.8 385.4 - 1.4 % Operative EPS* in € 0.90 0.98 + 8

  5. Slide 5: "Access" in H1 2020

    “ACCESS” IN H1 2020  CONSUMER ACCESS  BUSINESS APPLICATIONS  BUSINESS ACCESS  CONSUMER APPLICATIONS 5 Corporate presentation September 2020

  6. Slide 6: "Access Division": Portfolio and Target Groups

    “ACCESS DIVISION”: PORTFOLIO AND TARGET GROUPS Consumer Business Target countries Germany Germany Target groups Home users, freelancers, small businesses SMBs, large corporations Own network and own applications in combination with Solutions based on our own 49,500 km Solutions standardized network

  7. Slide 7: 5G Rationale – 5G Connects People, Applications and Machines

    5G RATIONALE – 5G CONNECTS PEOPLE, APPLICATIONS AND MACHINES  5G is the basis for a new economic Autonomous Smart City eco-system Driving  Networks, applications and billions of devices Digital Digital E-Health that are not yet internet-enabled are growing Farming Startups together Connected Intel

  8. Slide 8: 5G Rationale – Advantages of Operating Our Own 5G Network

    5G RATIONALE – ADVANTAGES OF OPERATING OUR OWN 5G NETWORK  “Tailor-made” network with highest quality  New business fields and customer groups (B2B, FWA)  Increased vertical integration  Internalization of network costs (rents)  Stronger sustainability of our mobile communications business FTTB

  9. Slide 9: Successful Participation in the 5G Auction

    SUCCESSFUL PARTICIPATION IN THE 5G AUCTION  Acquisition of frequencies (5x10 MHz in 3.6 GHz), available from 1 January 2021 at the latest  €61 million payable annually from 2019 until 2030  Acquisition of frequencies (2x10 MHz in 2 GHz), available from 1 January 2026  €67 million payable annuall

  10. Slide 10: Roadmap for Network Build

    ROADMAP FOR NETWORK BUILD  1st step: Acquisition of spectrum   2nd step: Negotiations about national roaming and infrastructure sharing ongoing  3rd step: Cooperation agreement with one or more technology partner(s) and their ongoing respective services  4th step: Network build-out based on the

  11. Slide 11: Using 1&1 Versatel's Fiber Network

    USING 1&1 VERSATEL’S FIBER NETWORK  1&1 Versatel runs one of the largest fiber networks in Germany, which can be used as 5G backhaul  In 250 German cities, including 19 of the 25 largest cities  49,495 km (previous year: 47,693 km) FTTB Today: Mobile communications base stations from third partie

  12. Slide 12: Roll-out Obligations

    ROLL-OUT OBLIGATIONS  End of 2022  1,000 active 5G base stations  End of 2025  25 % household coverage – corresponding to up to 40 biggest cities  End of 2030  50 % household coverage – corresponding to up to 390 biggest cities  End of 2021  Further construction of antenna sites in “white sp

  13. Slide 13: Consumer Access: Fixed-Line Business

    CONSUMER ACCESS: FIXED-LINE BUSINESS  Largest alternative German DSL provider  Connect fixed-line test: #1 in 2020, 2017 and 2015, #2 in 2018 and 2016 Last mile:  VDSL vectoring (FTTC) primarily FTTC via 1&1 Versatel and Layer 2 DTAG infrastructure of Deutsche Telekom, besides Layer 3  Fiber-opt

  14. Slide 14: Consumer Access: Mobile Business

    CONSUMER ACCESS: MOBILE BUSINESS  Germany’s leading MVNO  Broad market coverage Main brand  TEFD remedy partner with long- term guaranteed access to up to Co-brands 30% of network capacity and all future technologies, incl. 5G  Additional wholesale contract Discount brands with Vodafone 14 Corpo

  15. Slide 15: Consumer Access Segment: Customer Contracts

    CONSUMER ACCESS SEGMENT: CUSTOMER CONTRACTS (in million) Mobile Internet Broadband connections 15.00 14.33 14.57 +0.24  14.57 million customer contracts (+ 240,000)  10.24 million mobile internet contracts (+ 250,000) 10.00 9.99 10.24  4.33 million broadband connections 5.00 ADSL / VDSL / FTTH (-

  16. Slide 16: Consumer Access: Revenues

    CONSUMER ACCESS: REVENUES (acc. to IFRS in € million) Service revenues Hardware revenues  + 4.1 % revenues to € 1.867 billion  + 3.1 % service revenues to € 1,496.9 million, 2,000 1,867.2 1,792.9 +74.3 despite - € 4.6 million, due to the coronavirus (+4.1%) 1,500 pandemic (in particular missing in

  17. Slide 17: Consumer Access: EBITDA

    CONSUMER ACCESS: EBITDA (acc. to IFRS in € million)  - 2.7 % EBITDA to € 331.3 million  € - 13.7 million from regulation of subscriber line 350 340.4 331.3 -9.1 charges (“TAL”) and “SMS EU” (prior year: (-2.7%) 300 € - 1.0 million) 250  € - 5.6 million from initial costs for the 5G network 200 (p

  18. Slide 18: Business Access Segment

    BUSINESS ACCESS SEGMENT  One of the largest German fiber-optic networks  Project business and plug-and-play solutions for medium-sized companies Business  Fiber-optic network with FTTB 49,495 km (Prior year: 47,693 km) Authorities  In 250 German cities, including 19 of the 25 largest cities  17

  19. Slide 19: Business Access: Revenues

    BUSINESS ACCESS: REVENUES (acc. to IFRS in € million)  + 3.1 % revenues to € 241.5 million 250 241.5 +7.2  € - 8.2 million from services which expired in 2019 234.3 (+3.1%) and which were previously provided to broadband 200 customers taken over by 1&1 Drillisch in 2017 150  € + 3.1 million from

  20. Slide 20: Business Access: EBITDA

    BUSINESS ACCESS: EBITDA (acc. to IFRS in € million)  + 6.7 % EBITDA to € 74.9 million 80 74,9 70,2 +4.7  € - 3.3 million from expiry of services in 2019 for 70 (+6.7%) broadband customers taken over by 1&1 Drillisch 60 50  € + 0.9 million from stronger telephony business 40 due to the coronavirus

  21. Slide 21: "Applications" in H1 2020

    “APPLICATIONS” IN H1 2020  CONSUMER ACCESS  BUSINESS APPLICATIONS  BUSINESS ACCESS  CONSUMER APPLICATIONS 21 Corporate presentation September 2020

  22. Slide 22: Applications Division: Portfolio and Target Groups

    APPLICATIONS DIVISION: PORTFOLIO AND TARGET GROUPS Consumer Business Germany, Austria, Switzerland, UK, USA, France, Germany, Austria, France, Netherlands, UK, Italy, Poland, Target countries Spain, India Portugal, Spain, Canada, Mexico, USA Target groups Home users Freelancers, SMBs, Web Profession

  23. Slide 23: Consumer Applications: Key Assets

    CONSUMER APPLICATIONS: KEY ASSETS Largest ID Network Largest E-Mail Platform in DACH Region, 50% Market Share in Top 3 Publisher in DACH Region outside Google and Germany  No 1 in daily use for news Assets facebook  40 Mio Active User globally  No 3 in digital opinion lead  90% log in traffic 

  24. Slide 24: Consumer Applications: Assets

    CONSUMER APPLICATIONS: ASSETS  One of the leading providers in Consumer Applications  32.2 million active user accounts in Germany – more than 50 % market share in private emails eIDAS/ Cloud email* Content* ID De-Mail storage* #1 #1 #3 #1 #3  Differentiation through #2 – #1 – data protection and

  25. Slide 25: Consumer Applications: Accounts

    CONSUMER APPLICATIONS: ACCOUNTS (in million) Free Accounts Pay Accounts  40.82 million consumer accounts in total 45,00 40.82 40,00 39.85 +0.97 (+ 970,000), thereof 35,00  38.51 million free accounts (+ 920,000) 30,00 25,00  2.31 million pay accounts (+ 50,000) 20,00 37.59 38.51 15,00  25.8 mill

  26. Slide 26: Consumer Applications: Revenues

    CONSUMER APPLICATIONS: REVENUES (acc. to IFRS in € million) Pay accounts/portal marketing Sale of third-party inventory  + 0.3 % revenues to € 119.7 million 119.4 119.7 +0.3  + 0.9 % in the core business with pay accounts and 120 (+0.3%) 100 portal marketing despite - € 4.2 million pandemic- relat

  27. Slide 27: Consumer Applications: EBITDA

    CONSUMER APPLICATIONS: EBITDA (acc. to IFRS in € million) 50 47.3 47.0 -0.3 45 (-0.6%)  - 0.6 % EBITDA to € 47.0 million 40 35  € - 3.4 million pandemic-related burdens on earnings 30  39.3 % EBITDA margin (prior year: 39.6 %) 25 20 15  + 6.6% comparable EBITDA – without pandemic effect 10 5 0 H

  28. Slide 28: Summary - Big Data Opportunity for Consumer Applications

    SUMMARY - BIG DATA OPPORTUNITY FOR CONSUMER APPLICATIONS Single-Sign-On process: netID  Largest customer base in the attractive DACH market, leveraging two of the strongest and most trusted Consumer brands in Germany: GMX and WEB.de Applications  40m customer accounts, of which 38m free accounts a

  29. Slide 29: Business Applications: From Web Host to E-Business Solutions Provider

    BUSINESS APPLICATIONS: FROM WEB HOST TO E-BUSINESS SOLUTIONS PROVIDER E-mail Website Sector Business marketing design Mobile apps content apps Local Display E-payment E-shops SEO tools listings advertising solutions 29 Corporate presentation September 2020

  30. Slide 30: Lift Off to a New World of Hosting

    LIFT OFF TO A NEW WORLD OF HOSTING What’s new?  1&1 Internet SE + ProfitBricks = 1&1 IONOS  IONOS by 1&1  Only European web hosting provider that will be able to guide companies through all of the phases and milestones of their development  Comprehensive range of solutions, from domains to enter

  31. Slide 31: 1&1 IONOS Is the Undisputed #1 Web Host in Europe

    1&1 IONOS IS THE UNDISPUTED #1 WEB HOST IN EUROPE AND ONE OF THE LEADING HOSTING PLAYERS GLOBALLY We operate in a global, underserved CA market driving digitalization of #9 small and medium-sized businesses USA 4 #5 Largest European web host with more than UK PL MX #4 8m customers and over 25m domai

  32. Slide 32: Diverse Customer Segments Offering Great Market Potential

    DIVERSE CUSTOMER SEGMENTS OFFERING GREAT MARKET POTENTIAL Small Web Corporates / Prosumers Resellers / MSP Businesses Professionals Enterprises ▪ Hobbyists ▪ Bricks & mortar businesses ▪ IT-savvy experts ▪ IT system houses ▪ Mid to large size companies ▪ Private consumers ▪ Craftsmen ▪ Freelance des

  33. Slide 33: Business Applications: Customer Contracts

    BUSINESS APPLICATIONS: CUSTOMER CONTRACTS (in million) Abroad Domestic 9 8.32 8.15 8 +0.17  8.32 million customer contracts (+ 170,000) 7 6 4.25 4.34  4.34 million abroad (+ 90,000) 5  3.98 million domestic (+ 80,000) 4 3 2 3.90 3.98 1 0 31.12.2019 30.06.2020 33 Corporate presentation September 2

  34. Slide 34: Business Applications: Revenues

    BUSINESS APPLICATIONS: REVENUES (acc. to IFRS in € million) 500 471.6 443.3 +28.3 450 (+6.4%) 400  + 6.4 % revenues to € 471.6 million 350  Customer growth 300 250  Up- and cross selling 200 150  Positive effects from low-margin and volatile 100 domain parking business 50 0 H1 2019 H1 2020 34 Co

  35. Slide 35: Business Applications: EBITDA

    BUSINESS APPLICATIONS: EBITDA (acc. to IFRS in € million) 180 167.8 160 +19.5 148.3 (+13.1%) 140  + 13.1 % EBITDA to € 167.8 million 120 100  thereof € 48.0 million marketing expenses (prior year: 80 € 57.6 million, thereof € 13.7 million rebranding) 60  35.6 % EBITDA margin (prior year: 33.5 %)

  36. Slide 36: Financial Figures for the Group and Outlook 2020

    FINANCIAL FIGURES FOR THE GROUP AND OUTLOOK 2020 36 Corporate presentation September 2020

  37. Slide 37: Group: Key Figures as of 30 June 2020

    GROUP: KEY FIGURES AS OF 30 JUNE 2020 Contracts in millions / 30.06.2019 30.06.2020 Change financial KPIs acc. to IFRS in € millions Customer contracts with costs 24.29 25.20 + 0.91 Mio. Advertising financed Free-Accounts 36.95 38.51 +1.56 Mio. Revenues 2,556.5 2,657.9 + 4.0 % EBITDA 630.0 620.5 - 1

  38. Slide 38: Outlook 2020

    OUTLOOK 2020  On August 11, United Internet concretized the revenue forecast. We now expect growth of approx. 4 % (prior year: € 5,194.1 million).  EBITDA is expected to remain at the previous year's level (€ 1,265.7 million)  This forecast is subject to uncertainties, as it is currently not poss

  39. Slide 39: Share and Dividend

    SHARE AND DIVIDEND 39 Corporate presentation September 2020

  40. Slide 40: Share Price Development

    SHARE PRICE DEVELOPMENT 60 55 € 41.14 (31.08.2020) 50 45 40 35 30 25 2020: 2008: Financial 20 € 1.02 (23.3.98) crisis COVID-19 15 2002: Dotcom 10 bubble bursts 5 0 1998 2001 2004 2007 2010 2013 2016 2019 40 Corporate presentation September 2020

  41. Slide 41: Shareholder Return

    SHAREHOLDER RETURN Dividend payments Share buy backs Share capital (cumulative in € million) (cumulative in € million) (in € million) 1.200 1600 270 1400 1.000 250 1200 800 230 1000 600 800 210 600 400 190 400 200 170 200 0 0 150  Total dividend payments of  Total of € 1.4 billion for  Capital re

United Internet — Non-Deal Roadshow (September 2020) on 6ix