Freenet Ag · XETR:FNTN
Freenet — FY2013 Earnings Presentation
21 slides from Freenet's earnings presentation, Feb 28, 2014
Slide 1: Preliminary results for the financial year 2013
Preliminary results for the financial year 2013 Analyst and Investor Conference Call February 28, 2014
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: Today's speakers
Today’s speakers Christoph Vilanek, CEO Management positions in Direct Marketing and Media 1991 - 2001 Consultant for telecommunication with McKinsey&Company since 2001 Management positions at debitel AG since 2005 CEO of freenet AG since 2009 Joachim Preisig, CFO CFO of O2 since 1996 CFO of T-Mobil
Slide 4: Operational performance in 2013
Operational performance in 2013 Group revenue Slight increase of 3,193.3 731.2 increase of 3.5% yoy gross profit by 1.6% m€ m€ Group EBITDA on previous year‘s level, 357.4 m€ above guidance Free Cash flow slightly Rise of Group result 238.9 256.2 decreasing by 1.4% yoy, by 38.0% yoy m€ m€ but above
Slide 5: Key achievements in 2013 and projects in 2014
Key achievements in 2013 and projects in 2014 2013 2014 Acquisition, full consolidation and integration of Acquisition, full consolidation and integration of GRAVIS and MOTION TM Jesta Digital Group Renewal of exclusivity agreement with Media- Launch of additional digital lifestyle offerings
Slide 6: Development of digital lifestyle portfolio
Development of digital lifestyle portfolio First half Home Automation year 2014 Services for your home Heating Camera Security pack Anti virus Hardware security Junior security Security options Solutions for your security Bundling of Norton European Warranty Partners Security Option and/or Cloud Gam
Slide 7: The Jesta Digital acquisition: A further step into digital lifestyle
The Jesta Digital acquisition: A further step into digital lifestyle Signing on 19 December 2013, closing in Q1/2014 Strategic acquisition in order to complement and leverage existing digital lifestyle activities Mobile content packages with games, music, videos and ringtones New download po
Slide 8: Customer base: Further rise of customer ownership
Customer base: Further rise of customer ownership [in million] + 3.0% Customer ownership 8.50 8.76 Continuing positive development of customer ownership (+ 260,000 yoy) Postpaid customers 5.79 5.86 Improvement based on significant rise of no-frills (+180,000 yoy) and ongoing rise of postpaid custome
Slide 9: ARPU development in 2013
ARPU development in 2013 Postpaid ARPU declined from previous years' level, but proved relatively resistant in relation to the overall market ARPU (€ / month) Postpaid ARPU down 1.1 € at 22.3 € mainly due to 23.4 22.3 legacy customers’ switching into new flat tariffs No-frills ARPU 0.5 € lower c
Slide 10: Indexed development of postpaid ARPUs (as reported)
Indexed development of postpaid ARPUs (as reported) freenet outperforms three out of four network operators in Germany 115% 110% 105% 100% 97% 95% 93% 90% 90% 88% 87% 86% 85% DTE VOD O2D E-Plus FNTN Weighted average MNO postpaid ARPU 10 l Management Presentation l February 28, 2014
Slide 11: Guidance and preliminary figures 2013
Guidance and preliminary figures 2013 Guidance 2013 Preliminary Comments (Feb 2013) results 2013 Contract customer base was again increased Contract customers + 80,000 (+ around 80,000 customers) Postpaid ARPU is below expectations but Postpaid ARPU 23.0 € 22.3 € relatively stable compared to our co
Slide 12: Financial statements – income statement
Financial statements – income statement In € million 2013 1 2012 2 Increase of Group revenue due to initial consolidation of GRAVIS and MOTION TM and increased digital Revenue 3,193.3 3,084.8 lifestyle revenue Gross profit 731.2 719.8 Decrease of gross margin to 22.9% (2012: 23.3%) due to relati
Slide 13: Financial statements – balance sheet
Financial statements – balance sheet Assets Shareholders‘ equity and liabilities 31.12.2013 in € million 31.12.2012 31.12.2013 in € million 31.12.2012 adjusted1 adjusted1 397.3 Intangible assets 356.5 1,239.6 Shareholders‘ equity 1,177.5 1,122.1 Goodwill 1,116.6 538.0 Borrowings 656.6 Trade accounts
Slide 14: Financial statements – cash flow statement
Financial statements – cash flow statement In € million 2013 1 2012 2 Cash flow from operating activities remains stable compared to 2012 Cash flow from operating activities 278.4 280.1 Cash outflow from investing activities Cash flow from investing activities -35.4 -9.0 increased primarily due
Slide 15: Shareholder structure and share performance
Shareholder structure and share performance; 100% free float according to Deutsche Börse AG Current shareholder structure Indexed share performance against TecDAX 175% State of Norway, BlackRock, Norges Bank 3.02% 3.02% 150% 125% LSV Asset Management 3.04% 100% Other shareholders 75% 90.92% FNTN Tec
Slide 16: Development into investment grade territory aided by high FCF generation
Development into investment grade territory aided by high FCF generation used to diversify debt structure Diversification of financing structure Revolving credit line Promissory notes Volume: 300 m€ Total volume: 120 m€ Coupon: variable (latest tranche: 1.17%) : Tranche 1 Tranche 2 Tranche 3 Maturit
Slide 17: Key indicators of financial management and dividend policy remain unchanged
Key indicators of financial management and dividend policy remain unchanged Preliminary figures 2013 Target 2013 Target 2014/15 Debt factor 1.2 1.0 - 2.5 1.0 - 2.5 Interest cover 8.3 >5 >5 Equity ratio 50.0% > 50% > 50% Pay-out 2012 Pay-out 2013 Target 2014/15 Dividend pay-out ratio 66% 72.5% 50 - 7
Slide 18: Key elements of guidance for 2014/2015
Key elements of guidance for 2014/2015 Preliminary Guidance Guidance Comments results 2013 2014 2015 Customer +260,000 Slight increase in customer Ownership customers ownership expected for 2014/15 Postpaid ARPU expected to Postpaid ARPU 22.3 € slightly declining stable at 2014 level slightly declin
Slide 19: Detailed bridge from EBITDA to free cash flow
Detailed bridge from EBITDA to free cash flow 2013: From EBITDA to Free cash flow in € million 357.4 -50.1 -23.5 -22.2 -4.0 -1.4 256.2 EBITDA Change in net Tax payments Capex Profit from Other Free cash flow working capital the sale of freeXmedia Financial 355 ~ -45 ~ -31 ~ -20 -4 ~0 255 year 2013e
Slide 20: In financial year 2013 all major targets were achieved
In financial year 2013 all major targets were achieved KPIs in line with management expectation and above guidance Further focus on extension and optimisation of digital lifestyle products and services Price deterioration effect overcompensated by high-margin customer relationships including d
Slide 21: freenet AG Hollerstraße 126 24782 Büdelsdorf
freenet AG freenet AG Hollerstraße 126 Investor Relations 24782 Büdelsdorf +49 (0)40 51306 778 www.freenet-group.de investor.relations@freenet.ag