Freenet Ag · XETR:FNTN
Freenet — FY2011 Earnings Presentation
21 slides from Freenet's earnings presentation, Mar 1, 2012
Slide 1: Preliminary results 2011
Preliminary results 2011 Analyst and Investor Conference Call Hamburg, 1 March 2012
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 Today s speakers Christoph Ch i t h Vilanek Vil k CEO Joachim Preisig CFO 3 | Preliminary results 2011 | March 2012
Slide 4: Today's agenda
Today’s Today s agenda 1 Introduction and operational review 2 Financial review 3 Strategic outlook 4 Guidance 2012 and 2013 4 | Preliminary results 2011 | March 2012
Slide 5: Guidance 2011 increased and exceeded
Introduction and operational review Financial review Guidance 2011 increased and exceeded Strategic outlook Guidance 2012 and 2013 Guidance 2011 Guidance 2011 Preliminary results 2011 original latest¹ Contract customer base < -500,000 < -420,000 -366,000 ✓ Rec. Group EBITDA 325 m€ 355 m€ 360.3 m€ ✓
Slide 6: freenet share outperformed the 2011 market after successful realignment and migration
Introduction and operational review freenet share outperformed the 2011 market after Financial review Strategic outlook successful realignment and migration Guidance 2012 and 2013 Relative performance of the freenet share against the TecDAX and DAX in % 10.0 10 0€ Share price performance +27% in 2
Slide 7: Attractive product and hardware offering
Introduction and operational review Financial review Attractive product and hardware offering Strategic outlook Guidance 2012 and 2013 Successful launch of the new tariff plans “Flat 4 You”, “Flat Smart” and “Flat Allnet” Flat 4 You Flat Smart Flat Allnet Unlimited on-net calls Unlimited on-net
Slide 8: Independent test results confirm tariff attractiveness
Introduction and operational review Financial review Independent test results confirm tariff attractiveness Strategic outlook Guidance 2012 and 2013 8 | Preliminary results 2011 | March 2012
Slide 9: Product success supported by strong sales performance
Introduction and operational review Financial review Product success supported by strong sales performance Strategic outlook Guidance 2012 and 2013 More than 70% of new customers and contract renewals with smartphones Smartphone and 50% share of POS activations in 2nd half of 2011 with flat rate
Slide 10: Stabilization in customer ownership achieved
Introduction and operational review Financial review Stabilization in customer ownership achieved Strategic outlook Guidance 2012 and 2013 Customer base (million users) Total customer base 15.65 15.19 Prepaid customers 7.58 7.07 Total customer ownership (postpaid + no frills) grew b 43 by 43,000 0
Slide 11: Quality focus leads to ARPU stabilization
Introduction and operational review Financial review Quality focus leads to ARPU stabilization Strategic outlook Guidance 2012 and 2013 Average revenue per user (ARPU) ARPU (€/month) 24.0 23.8 Postpaid ARPU stable (-0.8%) due to increasing number of smartphone tariffs and increased data revenue sh
Slide 12: Financial statements – income statement
Introduction and operational review Financial review Financial statements – income statement Strategic outlook Guidance 2012 and 2013 In € million 20111 2010 Revenue 3,217.9 3,339.5 Decline in revenue is mainly the result Gross profit 715.8 720.3 of the reduction of contract customers EBITDA 337.4
Slide 13: Financial statements – balance sheet
Introduction and operational review Financial review Financial statements – balance sheet Strategic outlook Guidance 2012 and 2013 Assets Shareholders‘ equity and liabilities in € million in € million 31.12.20111 31.12.2010 31.12.20111 31.12.2010 485.3 Intangible assets 578.7 1,171.3 Shareholders‘ e
Slide 14: Financial statements – cash flow statement
Introduction and operational review Financial review Financial statements – cash flow statement Strategic outlook Guidance 2012 and 2013 In € million 2011¹ 2010 CF from operating activities: lower change in NWC NWC, but higher income tax Cash flow from operating activities 262.0 236.3 paid CF fr
Slide 15: Detailed bridge from recurring EBITDA to free cash flow
Introduction and operational review Financial review Detailed bridge from recurring EBITDA to free cash flow Strategic outlook Guidance 2012 and 2013 Free cash flow bridge 2011 in € million 360.3 -22.9 -45.7 -21.1 21 1 0.1 241.0 -29.7 Recurring R i NRI NRIs Change iin nett Ch C Capex Tax T Oth Other
Slide 16: Refinancing 2011: long term and well-balanced funding structure secured
Introduction and operational review Refinancing 2011: long term and well-balanced funding Financial review Strategic outlook structure secured Guidance 2012 and 2013 Replacement of old financing, financing dating back to private equity times 1,436 Refinancing 1,270 (April 2011) Development 800 of 71
Slide 17: Strategic outlook
Introduction and operational review Financial review Strategic outlook Strategic outlook Guidance 2012 and 2013 freenet Group strategy Extension and expansion of current product and service portfolio from telecommunications, internet, energy into full digital lifestyle arena exploiting existing comp
Slide 18: Guidance 2012 and outlook 2013 – Continuation of the current strategy
Introduction and operational review Guidance 2012 and outlook 2013 – Financial review Strategic outlook Continuation of the current strategy Guidance 2012 and 2013 Preliminary results 2011 Guidance 2012 Outlook 2013 C t t customer Contract t base b -366,000 366 000 customers t Postpaid p ARPU Stable
Slide 19: Detailed bridge from EBITDA to free cash flow
Introduction and operational review Financial review Detailed bridge from EBITDA to free cash flow Strategic outlook Guidance 2012 and 2013 Free cash flow bridge 2012e in € million 340 -50 -20 -30 30 240 EBITDA Change iin nett Ch C Capex Tax T Free cash F h working capital payments flow FY 340 -40 -
Slide 20: Summary
Summary freenet has outperformed the original and upward revised expectations for the year 2011 freenet f t is i an accepted t d and d respected t d partner t off allll 4 network t k operators t as well as of all relevant hardware suppliers in Germany and keeps its position as the number 3 in th
Slide 21: freenet AG contact details
freenet AG freenet AG Hollerstraße 126 Investor Relations 24782 Büdelsdorf +49 ((0)40 ) 51306 778 www.freenet-group.de investor.relations@freenet.ag