United Internet Ag · XETR:UTDI

United Internet — Non-Deal Roadshow (April 2020)

42 slides from United Internet's roadshow presentation, Apr 1, 2020

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

    UNITED INTERNET AG Corporate presentation April 2020 1 Corporate presentation April 2020

  2. Slide 2: Business Areas: Access & Applications

    2 BUSINESS AREAS: ACCESS & APPLICATIONS ACCESS APPLICATIONS Motivated team  9,400 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% 25.01% 27.42% Additional listed investment: Tele Columbus AG (29.90%) 3 Corporate presentation April 2020

  4. Slide 4: KPIs FY 2019

    KPIs FY 2019  Solid customer growth (24.74 million customer contracts: + 890,000 in FY 2019)  Revenue and operating earnings per share increase slightly 2018 2019 Revenue and earnings figures (in € million) Change (IFRS 15) (IFRS 16) Revenue 5,102.9 5,194.1 + 1.8 % EBITDA 1,201.3 1,265.7 + 5.4 % E

  5. Slide 5: "Access" in Fiscal Year 2019

    “ACCESS” IN FISCAL YEAR 2019  CONSUMER ACCESS  CONSUMER APPLICATIONS  BUSINESS ACCESS  BUSINESS APPLICATIONS 5 Corporate presentation April 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 48,500 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 MHz1 in 2 GHz), available from 1 January 2026  €67 million payable annual

  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  48,500 km (previous year: 47,000 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 2015 (nationwide), #2 in 2016, #1 in 2017, #2 in 2018, #3 in 2019 Last mile:  VDSL vectoring (FTTC) primarily via Layer 2 infrastructure of FTTC DTAG Deutsche Telekom, beside Layer 3 

  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 Cor

  15. Slide 15: "Consumer Access": Customer Contracts

    “CONSUMER ACCESS”: CUSTOMER CONTRACTS (in million) Mobile Internet Broadband connections 15.00 14.33 13.54 +0.79  14.33 million customer contracts (+ 790,000) 10.00  9.99 million mobile internet contracts (+ 790,000) 9.20 9.99  4.34 million broadband connections 5.00 ADSL / VDSL / FTTH 4.34 4.34

  16. Slide 16: "Consumer Access": Revenues

    “CONSUMER ACCESS”: REVENUES (acc. to IFRS in € million) Services revenues Hardware revenues 4,000 3,600.8 3,647.5 +46.7 3,500 (+1.3%)  + 1.3 % revenues to € 3,647.5 million 3,000  + 3.1 % service revenues to € 2,943.0 million 2,500 2,854.4 2,943.0  - 5.6 % (€ - 41.9 million) low-margin hardware 2

  17. Slide 17: "Consumer Access": EBITDA

    “CONSUMER ACCESS”: EBITDA (acc. to IFRS in € million)  - 4.5 % EBITDA to € 686.6 million  € - 3.2 million one-offs from Drillisch integration 800 ( prior year: € - 25.1 million) 719.3 686.6 -32.7 700 (-4.5%)  € - 5.7 million initial 5G costs 600  € - 8.8 million regul. subs. line co sts “TAL” (0

  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 48,489 km (Prior year: 47,013 km) Authorities  In 250 German cities, including 19 of the 25 largest cities 

  19. Slide 19: "Business Access": Revenues

    “BUSINESS ACCESS”: REVENUES (acc. to IFRS in € million) B2B and Wholesale Discontinued services * 500 465.9 476.6 +10.7 (+2.3%)  + 2.3 % revenues to € 476.6 million 400  Positive development in the core business for both 300 432.1 463.1 B2B and Wholesale (+ 7.2 %) 200 100 0 33.8 13.5 2018 2019 (IF

  20. Slide 20: "Business Access": EBITDA

    “BUSINESS ACCESS”: EBITDA (acc. to IFRS in € million) 150 147.2  + 102.8 % EBITDA to € 147.2 million +74.6  € + 59.6 million IFRS 16 effect (+102.8%) 100  30.9 % EBITDA margin (prior year: 15.6 %) 72.6 50  + 20.7 % comparable EBITDA – w/o IFRS 16 effects 0 2018 2019 (IFRS 15) (IFRS 16) 20 Corpor

  21. Slide 21: "Applications" in Fiscal Year 2019

    “APPLICATIONS” IN FISCAL YEAR 2019  CONSUMER ACCESS  CONSUMER APPLICATIONS  BUSINESS ACCESS  BUSINESS APPLICATIONS 21 Corporate presentation April 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 a

  25. Slide 25: "Consumer Applications": Accounts

    “CONSUMER APPLICATIONS”: ACCOUNTS (in million) Free accounts Pay accounts 39.25 39.85  39.85 million consumer accounts 40.00 +0.60 35.00 (+ 600,000), thereof 30.00  37.59 million free accounts (+ 590,000) 25.00 37.00 37.59  2.26 million pay accounts (+ 10,000) 20.00 15.00  24.6 million with mobi

  26. Slide 26: "Consumer Applications": Revenues

    “CONSUMER APPLICATIONS”: REVENUES (acc. to IFRS in € million) Sales pay accounts / portal marketing Sales third-party marketing  - 7.0 % revenues to € 255.0 million  € - 25.4 million from reduction of advertising space 300 274.2 (prior year: € - 17.0 million) in the core business 255.0 -19.2 250 (

  27. Slide 27: "Consumer Applications": EBITDA

    “CONSUMER APPLICATIONS”: EBITDA (acc. to IFRS in € million)  - 8.2 % EBITDA to € 103.6 million 120 112.8 103.6 -9.2  € - 24.3 million from reduction of advertising space (-8.2%) 100 and transition to data-driven business models 80 (prior year: € - 15.9 million) 60  € + 4.1 million from IFRS 16 40

  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 April 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 9.00 8.06 8.15 8.00 +0.09  8.15 million customer contracts (+ 90,000) 7.00 6.00 4.25  4.25 million abroad (+ 10,000) 4.24 5.00  3.90 million domestic (+ 80,000) 4.00 3.00 2.00 3.82 3.90 1.00 0.00 31.12.2018 31.12.2019 33 Cor

  34. Slide 34: "Business Applications": Revenues

    “BUSINESS APPLICATIONS”: REVENUES (acc. to IFRS in € million) 890.6 900 841.8 +48.8 (+5.8%) 800 700  + 5.8 % revenues to € 890.6 million 600  Customer growth 500  Up- und Cross-Selling 400 300 200 100 0 2018 2019 (IFRS 15) (IFRS 16) 34 Corporate presentation April 2020

  35. Slide 35: "Business Applications": EBITDA

    “BUSINESS APPLICATIONS”: EBITDA (acc. to IFRS in € million) 350  + 5.4 % EBITDA to € 306.2 million 306.2 300 290.4 +15.8  € - 26.7 million increased marketing expenses, (+5.4%) 250 thereof € - 19.2 million one-offs 200 (prior year: € - 16.6 million) 150  € + 13.7 million IFRS 16 effect 100  33.4

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

    FINANCIAL FIGURES FOR THE GROUP AND OUTLOOK 2019 36 Corporate presentation April 2020

  37. Slide 37: Group: Key Figures 2019

    GROUP: KEY FIGURES 2019 2018 2019 Contracts in million / financial KPIs acc. to IFRS in € million Change (IFRS 15) (IFRS 16) Fee-based customer contracts 23.85 24.75 + 0.89m Ad-financed free accounts 37.00 37.59 + 0.59m Revenue 5,102.9 5,194.1 + 1.8 % EBITDA 1,201.3 1,265.7 + 5.4 % EBIT 811.0 811.1

  38. Slide 38: Outlook 2020

    OUTLOOK 2020  Revenues and EBITDA at previous year's level 38 Corporate presentation April 2020

  39. Slide 39: Share and Dividend

    SHARE AND DIVIDEND 39 Corporate presentation April 2020

  40. Slide 40: Share Price Development

    SHARE PRICE DEVELOPMENT 60 55 50 45 € 26.10 (26.03.2020) 40 35 30 25 2008: Financial 20 crisis € 1.02 (23.3.98) 15 2002: Dotcom 10 bubble bursts 5 0 1998 2001 2004 2007 2010 2013 2016 2019 40 Corporate presentation April 2020

  41. Slide 41: Shareholder Return

    SHAREHOLDER RETURN Dividend payments Share buy backs Share capital (cumulative in € million) (cumulative in € million) (in € million) 1600 270 1.000 1400 250 1200 800 230 1000 600 800 210 400 600 190 400 200 170 200 0 0 150  Total dividend payments of  2019: New share buyback program,  Capital re

  42. Slide 42: United Internet AG: Our success story continues!

    UNITED INTERNET AG Our success story continues! 42 Corporate presentation April 2020

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