United Internet Ag · XETR:UTDI

United Internet — H1 2018 Earnings Presentation

33 slides from United Internet's earnings presentation, Aug 13, 2018

  1. Slide 1: 6-Month 2018

    UNITED INTERNET AG 6-Month 2018 Frankfurt/Main, August 13, 2018 1 H1 2018 Frankfurt/Main, August 13, 2018

  2. Slide 2: Agenda

    AGENDA Ralph Dommermuth Company development Outlook Frank Krause Results H1 2018 2 H1 2018 Frankfurt/Main, August 13, 2018

  3. Slide 3: Company Development

    COMPANY DEVELOPMENT 3 H1 2018 Frankfurt/Main, August 13, 2018

  4. Slide 4: KPIs H1 2018

    KPIs H1 2018 (in € million)  + 530,000 customer contracts to 23.17m H1 2017 H1 2018 Sales and earnings figures Change (IAS 18) (IFRS 15) Sales 1,954.1 2,548.9 + 30.4 % Pro-forma sales, incl. Strato and Drillisch in 2017 2,298.2 2,548.9 + 10.9 % EBITDA 429.9 565.5 + 31.5 % Pro-forma EBITDA, incl. St

  5. Slide 5: Segments: Access & Applications

    2 SEGMENTS: ACCESS & APPLICATIONS ACCESS APPLICATIONS Motivated team  9,000 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 Operational Exce

  6. Slide 6: Brands & Investments

    BRANDS & INVESTMENTS (As of: June 30, 2018) Consumer Access Business Consumer Applications Business Partners 25.10 % 25.01 % 25.39 % 29.93 % 29.70 % * Listed I n v e s t m e nt s 28.52 % 8.89% 10.46% * Formerly Hi-Media 6 H1 2018 Frankfurt/Main, August 13, 2018

  7. Slide 7: "Access" in H1 2018

    „ACCESS“ IN H1 2018  BUSINESS ACCESS  BUSINESS APPLICATIONS  CONSUMER ACCESS  CONSUMER APPLICATIONS 7 H1 2018 Frankfurt/Main, August 13, 2018

  8. Slide 8: Business Access

    BUSINESS ACCESS  Second-largest German fiber-optic network  Project business and plug-and-play for medium-sized companies Business  Fiber-optic network with a length of 45,839 km (Prior year: 42,346 km) FTTB  In 250 German cities, including Authorities 19 of the 25 largest cities  8,341 locatio

  9. Slide 9: Consumer Access: Fixed-Line Business

    CONSUMER ACCESS: FIXED-LINE BUSINESS  Largest alternative German DSL provider  Connect fixed line test: #1 in 2015 (nationwide), #2 in 2016, #1 in 2017, #2 in 2018 Homes  Gradual migration from ADSL FTTC DTAG to VDSL / Vectoring  Target infrastructure: Last mile via VDSL/Vectoring from DTAG (Lay

  10. Slide 10: 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 on up to 30 % of Co-brands network capacity and all future technologies  Additional wholesale contract with Discount brands Vodafone 10 H1 2018 Frankfu

  11. Slide 11: Consumer Access: Customer Contracts

    CONSUMER ACCESS: CUSTOMER CONTRACTS (in million) Mobile Internet DSL complete packages (ULL) 14.00 13.11 12.64 +0.47 12.00  13.11 million customer contracts (+ 470,000) 10.00 8.30 8.73  8.73 million mobile internet contracts (+ 430,000) 8.00 6.00  4.38 million DSL complete packages (+ 40,000) 4.0

  12. Slide 12: Access: Sales

    ACCESS: SALES (acc. to IFRS in € million) 2,200 2.001.7 2,000  Sales: € 2.002 billion (+ 35.8 % ) 1,800 +527.3 1,600 (+35.8%)  Consumer: € 1.806 billion (+ 42.6 %), incl. 1,474.4 1,400 € + 153.8 million IFRS 15 1,200 1,000  Business: € 222.2 million (- 0.1 %), incl. 800 € - 20.5 million from real

  13. Slide 13: Access: EBITDA

    ACCESS: EBITDA (acc. to IFRS in € million)  EBITDA: € 365.9 million (+ 40.7 %) 400 365.9  Consumer: € 340.2 million (+ 57.9 %), incl. 350 +105.9 € + 158.3 million IFRS 15 300 (+40.7%) 260.0 € - 158.3 million increased use of smartphones 250 € - 7.7 million one-offs Drillisch integration 200 150 

  14. Slide 14: Access: EBIT

    ACCESS: EBIT (acc. to IFRS in € million) 240 221.7 220 +30.1 200 191.6 (+15.7%) 180 160  EBIT: € 221.7 million (+ 15.7 %) 140 120  11.1 % EBIT margin (Prior year: 13.0 %) 100  PPA amortization for Drillisch reducing 80 60 EBIT growth and EBIT margin 40 20 0 H1 2017 H1 2018 (IAS 18) (IFRS 15) 14 H

  15. Slide 15: "Applications" in H1 2018

    „APPLICATIONS“ IN H1 2018  BUSINESS ACCESS  BUSINESS APPLICATIONS  CONSUMER ACCESS  CONSUMER APPLICATIONS 15 H1 2018 Frankfurt/Main, August 13, 2018

  16. Slide 16: Business Applications: From Webhoster to E-Business Solutions Provider

    BUSINESS APPLICATIONS: FROM WEBHOSTER 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 16 H1 2018 Frankfurt/Main, August 13, 2018

  17. Slide 17: Business Applications: Assets

    BUSINESS APPLICATIONS: ASSETS  Leading european provider  Active in 12 countries: #1 in Germany, Poland and Spain, #2 in UK and France*  Broad product portfolio  In-house developments and cooperations with development partners  Powerful data centers * Based on ccTLDs 17 H1 2018 Frankfurt/Main,

  18. Slide 18: Business Applications: Customer Contracts

    BUSINESS APPLICATIONS: CUSTOMER CONTRACTS (in million) non-domestic domestic 9.00 8.02 8.07 8.00 7.00  8.07 million million customer contracts (+ 50,000) 6.00 4.01 4.02  4.05 million domestic 5.00 4.00  4.02 million non-domestic 3.00 2.00 4.01 4.05 1.00 0.00 31.12.2017 30.06.2018 18 H1 2018 Frank

  19. Slide 19: Consumer Applications: From E-Mail Service to Command Center

    CONSUMER APPLICATIONS: FROM E-MAIL SERVICE TO COMMAND CENTER FOR COMMUNICATION, INFORMATION AND IDENTITY MANAGEMENT Communication Online office and organization Texts, spreadsheets, E-mail, calendar, presentations contacts, SMS, fax Cloud storage De-Mail For photos, videos, Legally secure communicat

  20. Slide 20: Consumer Applications: Assets

    CONSUMER APPLICATIONS: ASSETS  One of the leading providers in Consumer Applications  30.6 million active user accounts in Germany, more than 50% market share in private emails eIDAS/ E-Mail* Cloud* Content* De-Mail #1 #3 #3 #1 #1 #1  Differentiation through data protection #3 #2 #2 #6 #2 #2 and

  21. Slide 21: Consumer Applications: Accounts

    CONSUMER APPLICATIONS: ACCOUNTS (in million) Free-Accounts Pay-Accounts  38.05 million consumer accounts (+ 400,000), 40.00 37.65 38,05 35.00 thereof 30.00  36.06 million free accounts (+ 390,000) 25.00 20.00 35.67 36.06  1.99 million pay products (+ 10,000) 15.00  21.8 million with mobile usage

  22. Slide 22: Applications: Sales

    APPLICATIONS: SALES (acc. to IFRS in € million) 600 557.1 +63.3  Sales: € 557.1 million (+ 12.8 %) 493.8 (+12.8%) 500  Consumer: € 140.2 million (+ 4.3 %), incl. 400 € + 0.5 million IFRS 15 € - 5.1 million due to the reduction in 300 advertising space as part of the transition to 200 data-driven b

  23. Slide 23: Applications: EBITDA

    APPLICATIONS: EBITDA (acc. to IFRS in € million) 220  EBITDA: € 203.4 million (+ 15.5 %) 203.4 200 +27.3 180 176.1 (+15.5%)  Consumer: € 54.5 million (- 5.9 %), incl. 160 € + 0.5 million IFRS 15 140 120 € - 5.1 million due to reduced advertising space 100 80  Business: € 148.9 million (+ 26.0 %),

  24. Slide 24: Applications: EBIT

    APPLICATIONS: EBIT (acc. to IFRS in € million) 160 155.7 +15.7 140.0 (+11.2%) 140 120  EBIT: € 155.7 million (+ 11.2 %) 100 80  27.9 % EBIT margin (Prior year: 28.4 %) 60  PPA amortization for Strato reducing 40 EBIT growth and EBIT margin 20 0 H1 2017 H1 2018 (IAS 18) (IFRS 15) 24 H1 2018 Frankf

  25. Slide 25: Pro-Forma Development in H1 2018

    PRO-FORMA DEVELOPMENT IN H1 2018 (H1 2017 incl. Strato and Drillisch; in € million) H1 2017 H1 2018 Access Change Comments H1 2018 Like-for-like (IAS 18) (IFRS 15) Sales 1,785.7 2,001.7 + 12.1 %  € + 153.8 million IFRS 15 + 3.5 %  € + 158.7 million IFRS 15 effect  € - 158.3 million increased use

  26. Slide 26: Outlook

    OUTLOOK 26 H1 2018 Frankfurt/Main, August 13, 2018

  27. Slide 27: Outlook 2018

    OUTLOOK 2018 After a successful first half 2018 we confirm our guidance for the full year 2018  Sales increase from € 4.21 billion in prior-year (IAS 18) to approx. € 5.2 billion (acc. to IFRS 15)  EBITDA increase from € 980 million (IAS 18) to approx. € 1.2 billion (acc. to IFRS 15) 27 H1 2018 Fr

  28. Slide 28: Results H1 2018

    RESULTS H1 2018 28 H1 2018 Frankfurt/Main, August 13, 2018

  29. Slide 29: Group: Customer, Sales and Earnings as of June 2018

    GROUP: CUSTOMER, SALES AND EARNINGS AS OF 30 JUNE 2018 (contracts in million / financial KPIs acc. to IFRS in € million) H1 2017 H1 2018 Change (IAS 18) (IFRS 15) Fee-based customer contracts 18.85 23.17 + 4.32m Sales 1,954.1 2,548.9 + 30.4 % EBITDA 429.9 565.5 + 31.5 % EBIT after PPA-amortization o

  30. Slide 30: Group: Balance Sheet as of June 2018 (I)

    GROUP: BALANCE SHEET AS OF 30 JUNE 2018 (I) (acc. to IFRS in € million) 31.12.2017 01.01.2018 30.06.2018 Comments Assets (IAS 18*) (IFRS 15**) (IFRS 15**) (Changes to the opening balance) Property, plant and equipment / 2,140.8 2,125.7 2,051.3  Capex: € 119.7m ; D&A: € 191.7m intangible assets Good

  31. Slide 31: Group: Balance Sheet as of June 2018 (II)

    GROUP: BALANCE SHEET AS OF 30 JUNE 2018 (II) (acc. to IFRS in € million) 31.12.2017 01.01.2018 30.06.2018 Comments Liabilities and equity (IAS 18*) (IFRS 15**) (IFRS 15**) (Changes to the opening balance)  Equity ratio: 56.2 % Equity 4,050.6 4,501.3 4,594.9  Increase due to subsequent valuation 

  32. Slide 32: Group: Cash Flow as of June 2018

    GROUP: CASH FLOW AS OF 30 JUNE 2018 (acc. to IFRS in € million) 30.06.2017 30.06.2018 comments (IAS 18) (IFRS 15) Operative cash flow 315.6 418.9  2017 w/o capital gains tax refund (€70.3m)  Decrease due to accounting acc. to IFRS 15 Cash flow from operating activities 394.5 164.7 for the first ti

  33. Slide 33: Our success story continues!

    UNITED INTERNET AG Our success story continues! 33 H1 2018 Frankfurt/Main, August 13, 2018

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