Slide 1: United Internet AG Company Presentation (9M/2023)
UNITED INTERNET AG Company Presentation (9M/2023) 1 Company Presentation 9M/2023
Slide 2: KPIs 9M 2023
KPIs 9M 2023 ▪ 28.19 million customer contracts: +730,000 in the first 9 months 2023 Revenues and earnings figures (in € million) 9M 2022 9M 2023 Change Revenues 4,384.3 4,588.9 +4.7% EBITDA (1) 986.5 995.9 +1.0% EBIT (1) 625.2 599.5 -4.1% EPS (1) (in €) 1.59 1.23 -22.6% 6 ▪ EBITDA (1) operative 9M
Slide 3: Business Areas: Access & Applications
2 BUSINESS AREAS: ACCESS & APPLICATIONS ACCESS APPLICATIONS Consumer Access Consumer Applications Motivated Team ▪ 10,700 employees, of which approx. 3,800 in product management, development and data centers Revenues strength ▪ Around 5 million contracts p. a. ▪ 50,000 registrations for free service
Slide 4: Group Structure
GROUP STRUCTURE (as of November 2023) 1&1 AG IONOS Group SE <25% >75% 63.8% 36.2% shareholders shareholders Consumer Business Consumer Business Minorities Access Access Applications Applications 100% 100% 100% 100% 31.52% 25.39% 16.02%* 38.00%** 25.10% 20.00% * Held indirectly through the 63.84% int
Slide 5: Access
ACCESS* Consumer Access Business Access ▪ Revenues: € 3,943.0 million ▪ Revenues: € 542.8 million ▪ EBITDA: € 696.5 million ▪ EBITDA: € 155.6 million ▪ Profitability: 17.7% EBITDA margin ▪ Profitability: 28.7% EBITDA margin ▪ FTE: ~ 3,150 ▪ FTE: ~ 1,350 ▪ Total contracts: 15.78 million * Figures bas
Slide 6: Consumer Access Segment: Customer Contracts
CONSUMER ACCESS SEGMENT: CUSTOMER CONTRACTS (in million) Mobile Internet Broadband connections 18 ▪ 16.11 million customer contracts (+330,000) 15.78 16.11 16 +0.33 ▪ 12.10 million mobile internet contracts (+420,000) 14 12 ▪ 4.01 million broadband connections (-90,000) 12.10 10 11.68 ▪ Continuous p
Slide 7: Consumer Access Segment: Revenues
CONSUMER ACCESS SEGMENT: REVENUES (acc. to IFRS in € million) Service revenues Other revenues 3,200 2,950.3 3,031.8 +81.5 ▪ +2.8% revenues to € 3,031.8 million (+2.8%) 2,800 ▪ +1.3% service revenues to € 2,418.9 million 2,400 ▪ +8.7% other revenues (especially smartphones) 2,000 2,386.7 2,418.9 to €
Slide 8: Consumer Access (I): EBITDA
CONSUMER ACCESS (I): EBITDA (acc. to IFRS in € million) 549.0 550 -37.9 511.1 (-6.9%) 500 450 ▪ -6.9% EBITDA from € 549.0 million to € 511.1 million 400 350 ▪ € -73.8 million costs for rollout of 1&1 mobile network 300 (prior year: € -26.8 million) 250 200 ▪ 16.9% EBITDA margin (prior year: 18.6%) 1
Slide 9: Consumer Access (II): EBITDA of the Two Subsegments
CONSUMER ACCESS (II): EBITDA OF THE TWO SUBSEGMENTS (acc. to IFRS in € million) EBITDA “Access” 575.8 584.9 +9.1 600 (+1.6%) “Access” 500 400 ▪ +1.6% EBITDA to € 584.9 million 300 200 ▪ 19.3% EBITDA margin (prior year: 19.5%) 100 0 9M 2022 9M 2023 EBITDA “1&1 Mobilfunknetz” 0 “1&1 Mobilfunknetz” -20
Slide 10: Consumer Access
“CONSUMER ACCESS” ▪ 1&1 – strong fourth player in the German telecommunication market ▪ Own network and own applications in combination with standardized network solutions and third-party devices Target groups Home users, freelancers, small businesses Own network and own applications in combination
Slide 11: Consumer Access: Fixed-Line Business
“CONSUMER ACCESS”: FIXED-LINE BUSINESS Fixed-line ▪ 1&1 as largest alternative DSL provider with 4.05 million broadband connections ▪ VDSL and FTTH complete packages including voice and IP -TV via 1&1 Versatel, with last mile via Deutsche Telekom and City Carrier Mobilfunk ▪ 1&1 as leading MVNO with
Slide 12: Business Access
“BUSINESS ACCESS” ▪ One of the largest German fiber-optic networks ▪ Project business and plug-and-play solutions for medium-sized companies ▪ Fiber-optic network with 57,113 km (prior year: 55,459 km) ▪ In more than 350 German cities, including in the 25 largest cities ▪ 24,526 directly connected l
Slide 13: Two Pillars of Versatel's Business
TWO PILLARS OF VERSATEL’S BUSINESS B2B Wholesale ▪ In the annual connect fixed network test, Carrier business with all major 1&1 took first place for the third time Large Corporations & SMB’s telecommunication providers ▪ 1&1 Versatel played a key role in this success as a wholesale provider for L2-
Slide 14: Business Access Segment: Revenues
BUSINESS ACCESS SEGMENT: REVENUES (acc. to IFRS in € million) 450 413.4 +14.2 399.2 400 (+3.6%) 350 300 ▪ +3.6% revenues to € 413.4 million 250 200 Q3 revenues yoy: +4.0% 150 100 50 0 9M 2022 9M 2023 14 Company Presentation 9M/2023
Slide 15: Business Access Segment: EBITDA
BUSINESS ACCESS SEGMENT: EBITDA (acc. to IFRS in € million) 120 118.2 112.2 +6.0 110 (+5.3%) 100 90 ▪ +5.3% EBITDA to € 118.2 million 80 70 ▪ 28.6% EBITDA margin (prior year: 28.1%) 60 50 40 Q3 EBITDA yoy: +9.9% 30 20 10 0 9M 2022 9M 2023 15 Company Presentation 9M/2023
Slide 16: Applications
APPLICATIONS* Consumer Applications Business Applications ▪ Revenues: € 283.9 million ▪ Revenues: € 1.248 billion ▪ EBITDA: € 119.3 million ▪ EBITDA: € 318.2 million ▪ Profitability: 42.0% EBITDA margin ▪ Profitability: 25.5% EBITDA margin ▪ FTE: ~ 1,050 ▪ FTE: ~ 4,250 ▪ Total contracts: 42.95 milli
Slide 17: Consumer Applications
“CONSUMER APPLICATIONS” ▪ GMX & WEB.DE are one of the most popular and best-known brands and portals in Germany ▪ Trusted environment made in Germany – services for digital communication and information Target groups Home users ▪ Outstanding market position with a huge market share of Product develo
Slide 18: Consumer Applications: Assets
“CONSUMER APPLICATIONS”: ASSETS ▪ One of the leading providers of consumer applications with GMX, WEB.DE and mail.com ▪ 42.26 million active accounts in Germany alone - over 50% market share for private e-mails eIDAS/ Cloud- email* Content* ID De-Mail Storage* #1 #1 #2 #1 #2 ▪ Differentiation throug
Slide 19: Consumer Applications Segment: Accounts
CONSUMER APPLICATIONS SEGMENT: ACCOUNTS (in million) Free accounts Pay accounts 50 42.95 ▪ 42.55 million Consumer accounts (-400,000), thereof 42.55 -0.40 40 ▪ 39.77 million free accounts (-540,000 primarily seasonal) 30 ▪ 2.78 million pay accounts (+140,000) 40.31 39.77 20 ▪ 28.2 million with mobil
Slide 20: Consumer Applications Segment: Revenues
CONSUMER APPLICATIONS SEGMENT: REVENUES (acc. to IFRS in € million) 220 211.5 215.3 +3.8 (+1.8%) 200 180 160 ▪ +1.8% revenues to € 215.3 million 140 120 100 Q3 revenues yoy: +7.7% 80 60 40 20 0 9M 2022 9M 2023 20 Company Presentation 9M/2023
Slide 21: Consumer Applications Segment: EBITDA
CONSUMER APPLICATIONS SEGMENT: EBITDA (acc. to IFRS in € million) 75 73.8 70.3 +3.5 (+5.0%) ▪ +5.0% EBITDA to € 73.8 million 50 ▪ 34.3% EBITDA margin (prior year: 33.2%) Q3 EBITDA yoy: +18.6% 25 0 9M 2022 (1) 9M 2023 (1) (1) excl. a non-cash valuation effect from derivatives EBITDA effect: € -5.3 mi
Slide 22: Business Applications
“BUSINESS APPLICATIONS” ▪ IONOS as Europe's leading digitization partner for freelancers and small/medium-sized enterprises and reliable cloud enabler ▪ Active in 15 European countries: #1 in Germany, Spain, Poland and Austria, #2 in UK and France*, also in USA, Canada and Mexico ▪ Broad product por
Slide 23: Business Applications
“BUSINESS APPLICATIONS” ▪ #1 European SMB digitalization partner & trusted cloud enabler ▪ Product portfolio with everything companies need to be successful: from Web Presence & Productivity to Cloud Solutions Web Presence & Productivity Cloud Solutions € 318 million EBITDA* (approx. 26% margin)* At
Slide 24: IONOS Leading Partner for SMB Digitalization in Europe
IONOS IS THE LEADING PARTNER FOR SMB DIGITALIZATION IN EUROPE WI TH A BROAD STRATEGIC FOOTPRINT AND LEADING LOCAL BRANDS IONOS footprint in 18 markets & local brand champions Webhosting market share in Europe (%)1 1 Sweden Germany 1 Europe overall 1 >2x UK Spain 1 Netherlands Poland Canada Germany A
Slide 25: Large and Fast-Growing Market Driven by Secular Trends
LARGE AND FAST-GROWING MARKET DRIVEN BY SECULAR TRENDS Large and untapped IONOS addressable market 15-26***, €bn SMB core target group* >90mm 89 19% CAGR SMBs in North America and Europe 15% CAGR 55 38 15 ~58mm 16 3 22 34 SMBs across Europe 14 2015A 2021A 2026F ~6mm CAGR 15–21 21–26 IONOS customers*
Slide 26: Comprehensive Product Portfolio, Customer Care and Infrastructure
COMPREHENSIVE PRODUCT PORTFOLIO, FIRST CLASS CUSTOMER CARE AND INFRASTRUCTURE Strong customer support organisation (Personal Service Agent & 24/7 multi-channel support) WEB PRESENCE & PRODUCTIVITY CLOUD SOLUTIONS One-stop-shop for all digitalization needs of SMBs Trusted European cloud provider for
Slide 27: IONOS One-Stop-Shop Portfolio Enables End-to-End Digitisation Journey
THE IONOS ONE-STOP-SHOP PORTFOLIO ENABLES AN END-TO-END DIGITISATION JOURNEY FOR OUR CUSTOMERS Protect your brand with a domain For domains that have Communicate your professional identity with already been rewarded company branded e-mail 1 ccTLDs 2 3 Business Mail “My customers can now find my busi
Slide 28: IONOS Serves Customers of All Sizes
IONOS SERVES CUSTOMERS OF ALL SIZES WITH FOCUS ON SOLO-PRENEURS & SMB’S Web Presence & Productivity Cloud Solutions Customer type / % of total* Solo-preneurs | 50% SMBs | 48% Agencies | 2% Mid market | <1% Public sector | <1% Private, Government and Characteristic <€20mm revenue Web professionals €2
Slide 29: IONOS Positioned to Take Advantage of Multiple Growth Levers
IONOS IS WELL POSITIONED TO TAKE ADVANTAGE OF MULTIPLE GROWTH LEVERS Driving digitalization Accelerated growth Further accelerate Build the strongest International Expand product Platform for and adoption of via up- and cross-sell cloud offering brand in the industry expansion portfolio M&A digital
Slide 30: Business Applications Segment: Customer Contracts
BUSINESS APPLICATIONS SEGMENT: CUSTOMER CONTRACTS (in million) Abroad Domestic 10 9.30 9.04 +0.26 8 ▪ 9.30 million customer contracts (+260,000) 4.61 4.74 6 ▪ 4.74 million abroad (+130,000) ▪ 4.56 million domestic (+130,000) 4 4.43 4.56 2 0 31.12.2022 30.09.2023 30 Company Presentation 9M/2023
Slide 31: Business Applications Segment: Revenues
BUSINESS APPLICATIONS SEGMENT: REVENUES (acc. to IFRS in € million) 1,200 1,058.7 ▪ +11.0% revenues to € 1,058.7 million +105.0 1,000 953.7 (+11.0%) ▪ Customer growth 800 ▪ Increased up- and cross-selling 600 ▪ Good growth in aftermarket business 400 200 Q3 revenues yoy: +8.1% 0 9M 2022 9M 2023 31 C
Slide 32: Business Applications Segment: EBITDA
BUSINESS APPLICATIONS SEGMENT: EBITDA (acc. to IFRS in € million) 300 293.7 +31.6 262.1 (+12.1%) 240 ▪ +12.1% EBITDA to € 293.7 million ▪ 27.7% EBITDA margin (prior year: 27.5%) 180 120 Q3 EBITDA yoy: +13.2% 60 0 9M 2022 (1) 9M 2023 (1) (1) Adjusted for IPO costs of € +11.7 million (prior year: € -3
Slide 33: Key Financial KPIs 9M 2023
KEY FINANCIAL KPI S 9M 2023 (financial KPIs acc. to IFRS in € million) 9M 2022 9M 2023 Change Revenues 4,384.3 4,588.9 +4.7% EBITDA (1) 986.5 995.9 +1.0% Capex 348.6 503.4 +44.4% Free cash flow (2) -16.3 -14.1 - 31.12.2022 30.09.2023 Change Net bank liabilities 2,115.0 2,273.1 +7.5% Equity ratio 51.
Slide 34: Group: EBITDA / Free Cash Flow Bridge
GROUP: EBITDA / FREE CASH FLOW BRIDGE AS OF SEPTEMBER 30, 2023 (acc. to IFRS in € million) 995.9 989.0 -6.9 -500.2 -276.5 -183.6 70.4 41.7 -84.5 -14.1 EBITDA One-off EBITDA Capex Contingent Tax Working Free Cashflow Leasing Free Cashflow 9M 2023 9M 2023 (net) payment Capital & 9M 2023 after leasing
Slide 35: Outlook 2023
OUTLOOK 2023 35 Company Presentation 9M/2023
Slide 36: Outlook 2023
OUTLOOK 2023 Full year guidance confirmed and EBITDA forecast slightly increased ▪ Revenues: approx. € 6.2 billion (2022: € 5.915 billion) ▪ EBITDA (excluding derivatives and IONOS IPO) slightly above prior year’s level (previous guidance: "at the previous year's level“ - 2022: € 1.272 billion), inc
Slide 37: Share and Dividend
SHARE AND DIVIDEND 37 Company Presentation 9M/2023
Slide 38: Share Price Development and Shareholder Structure
SHARE PRICE DEVELOPMENT AND SHAREHOLDER STRUCTURE 60 € € 59.80 (ATH: 09.01.2018) Key Share Facts & Figures: 50 € € 19.98 (01.09.2023) ▪ ISIN: DE0005089031 40 € ▪ WKN: 508903 € 1.02 (23.3.98) ▪ Stock Exchange: Xetra 30 € 2008: Financial crisis ▪ Index: MDAX, TecDAX 20 € 2020: COVID-19 ▪ Shares: 192.0
Slide 39: Shareholder Return
SHAREHOLDER RETURN Dividend payments Share buy backs Share capital (cumulative in € million) (cumulative in € million) (in € million) 1600 270 1,400 1400 1,200 250 1200 1,000 230 1000 800 800 210 600 600 190 400 400 200 170 200 0 0 150 ▪ Dividend payment for fiscal year 2023: ▪ Total of more than €
Slide 40: Sustainability at United Internet
SUSTAINABILITY AT UNITED INTERNET 40 Company Presentation 9M/2023
Slide 41: Sustainability at United Internet
SUSTAINABILITY AT UNITED INTERNET Sustainability at United Internet Corporate Sustainability Management Corporate Responsibility Digital Responsibility Social Responsibility Ecological Responsibility Working Conditions and Human Data Privacy, Resources Strategy, Information Security, Training and Ed
Slide 42: United Internet – ESG Approach
UNITED INTERNET – ESG APPROACH ESG – Environment – Social – Governance & Digital Responsibility IONOS data centers are powered by United Internet's employees are the key to its € 64 million accumulated donations for Information management system green electricity and are ISO 50001 success UNICEF sin
Slide 43: ESG Ratings 2022
ESG RATINGS 2022 Rating agency Overall rating 2022 C- A 21.7 C 40 2.6 not accessed Overall rating 2021 C- BBB 21.5 C 36 2.9 40 Overall rating 2020 C- BB 21.8 C 35 2.9 32 Highlights Increase in overall United Internet Policy on data Improved results The company is at United Internet AG score due to s
Slide 44: Investor Relations Contact
INVESTOR RELATIONS CONTACT DOMINIC GROSSMANN VOTING RIGHTS* Head of Investor Relations United Interent AG Phone: +49 2602 / 96-1671 Elgendorfer Straße 57 E-Mail: dgrossmann@united-internet.de D-56410 Montabaur E-Mail: voting-rights@united-internet.de * Please use the provided email address for share
Slide 45: United Internet AG – Our success story continues!
UNITED INTERNET AG Our success story continues! 45 Company Presentation 9M/2023