Freenet Ag · XETR:FNTN
Freenet — FY2022 Earnings Presentation
21 slides from Freenet's earnings presentation, Feb 23, 2023
Slide 1: Management Presentation: Preliminary results for FY/Q4 2022
Management Presentation Preliminary results for FY/Q4 2022 Christoph Vilanek, CEO Ingo Arnold, CFO 23.02.2023 Analyst and Investor Conference Call
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: Agenda
Agenda 1 Business C. Vilanek, CEO 2 Financials I. Arnold, CFO 3 Q&A FY 22/Q4 22 results - Analyst and Investor Conference Call 23.02.2023 3
Slide 4: 2022 financial guidance beat in key dimensions
2022 financial guidance beat in key dimensions Revenue EBITDA Free cash flow in mEUR in mEUR in mEUR CAGR -0.4% CAGR +6,0% 0.0% CAGR +7,0% +2,5% 2,576.2 2,556.3 2,556.7 478,7 425,9 447,3 +6,3% 237,3 234,4 249,2 2020 2021 2022 2020 2021 2022 2020 2021 2022 Guidance 2022 Guidance 2022 460-480 Guidance
Slide 5: 9 million subscribers surpassed YE 2022
9 million subscribers surpassed YE 2022 Subscribers as of 31st December Subscriber guidance 2022 in ´000s (end of period) / as indicated 8.785,1 +257,3 Total subscribers 9.042,4 (+2,9%) 7.178,0 +95,7 Postpaid Moderate growth of 7.273,7 (+1,3%) Mobile postpaid customers net adds 88,0 +25,1 +120.8 FUN
Slide 6: Mobile services deliver moderate growth
Mobile services deliver moderate growth Mobile subscriber development Orientation towards customer needs and +39.7 enforced brand identity in ‘000s (end of period) +43.0 (0.5%) (0.6%) Consolidation of brand portfolio with freenet as umbrella brand 7,347.1 7,386.8 7,266.0 7,281.2 7,306.5 7,223.0 10
Slide 7: freenet internet offer started successfully
freenet internet offer started successfully Timeline remains in place Key features Asset-light (no CapEx) Mobile LTE in progress H1/2022 Launch of additional Internet Flats Internet access only technologies (i.e., incl. Hardware Cable, FTTH, …) Access technology agnostic pricing Online/Shops a
Slide 8: Dynamic growth in IPTV with +247.500 subs
Dynamic growth in IPTV with +247.500 subs waipu.tv already crossed the one million mark End of Subscribers in ‘000s (end of period) January Critical 970.0 > 1,000 size 722.5 572.5 408.3 251.8 7.5 102.3 IPTV (OTT) market Pioneer for programmatic Start of NETFLIX Launch of waipu.tv Partnership 2025 La
Slide 9: Overall successful TV and media business
Overall successful TV and media business TV subscribers Operational highlights in ‘000s (end of period) +72.2 waipu.tv +37.3 (+2.5%) (+4.6%) New strategic partnerships with fibre providers (Deutsche Glasfaser, LilaConnect) and streaming players (Roku TV, DAZN) 1,561.6 1,583.5 1,655.6 1,481.8 1,519
Slide 10: ESG achievements 2022 and key ambitions
ESG achievements 2022 and key ambitions Achievements 2022 New Board member for Personnel and ESG Green electricity: 95% of total electricity We aim to incorporate sustainability and consumption covered by renewables non-financial factors into every decision with the same weight as economic criteria.
Slide 11: Outlook 2023
Outlook 2023 Mobile Communications Subscriber guidance 2023 Rational competitive environment in terms of pricing, with some scope for modest front-book price rises; overall stable ARPU expected Moderate subscribers Postpaid Loyalty of existing customers and customer satisfaction remains growth c
Slide 12: Group: EBITDA grows 7.0% in FY 2022
Group: EBITDA grows 7.0% in FY 2022 -7.8 Revenues (-1.2%) FY 22 vs. FY 21 in mEUR 641.8 675.5 652.1 667.7 Revenues at 2,556.7 mEUR on par with prior year (2,556.3 619.2 619.9 616.8 620.1 mEUR) Gross profit up +3.9% yoy to 886.7 mEUR (2021: 853.4 mEUR), increase based on better revenue quality (i
Slide 13: Mobile: Outperforms prior-year figures
Mobile: Outperforms prior-year figures Revenues -18.8 (-3.1%) FY 22 vs. FY 21 in mEUR 571.2 599.7 578.3 580.9 Revenues below prior year (-0.9%) mainly due to lower low- 548.7 551.1 544.6 547.5 margin hardware revenues; SR share increases to 74.0% 150.5 185.6 154.3 162.9 143.3 140.3 135.4 132.8 (20
Slide 14: Mobile: DLS revenues better than previous year after slow start into 2022
Mobile: DLS revenues better than previous year after slow start into 2022 High-value mobile customer base FY 22 vs. FY 21 in ‘000s +120.8 (+1.7%) Moderate growth of high-value mobile customer base (+1.7% yoy to 7,386.8 k) and 7,347.1 7,386.8 7,223.0 7,266.0 7,281.2 7,306.5 112.1 113.1 Postpaid A
Slide 15: TV and Media: Double-digit growth in revenues and EBITDA
TV and Media: Double-digit growth in revenues and EBITDA Revenues +12.6 FY 22 vs. FY 21 in mEUR (+16.8%) 87.7 Driven by strong customer growth of waipu.tv, revenues increase by +10.1% yoy to 313.3 mEUR (2021: 284.5 mEUR) including 75.1 73.9 74.8 76.9 69.5 69.3 70.6 one-time revenues from sale of w
Slide 16: FCF at upper end of guidance leads to dividend proposal of 1.68 euros
FCF at upper end of guidance leads to dividend proposal of 1.68 euros EBITDA-to-Free cash flow (FCF) bridge Dividend proposal for FY 2022 according to financial policy in mEUR -55.0 80 percent of -29.1 -60.0 FCF distributed 5.5 0.4 1.68* -72.3 -19.0 EUR per dividend-bearing share (DPS) 249.2 478.7 E
Slide 17: Balance sheet under control: High equity ratio and low leverage
Balance sheet under control: High equity ratio and low leverage Maturity structure as of 31 December 2022 in mEUR Roughly 35% of promissory note loans have variable interest 192.0 178.5 rates and are subject to interest rate risk 36.5 Impact of interest rate changes cushioned by cash holdings 11
Slide 18: Guidance 2023 confirms financial ambition 2025
Guidance 2023 confirms financial ambition 2025 Financial guidance Prelims Guidance in mEUR/ as indicated 2022 2023 Revenue 2,556.7 stable EBITDA 478.7 480 - 500 Free cash flow 249.2 250 - 270 Subscriber guidance in ‘000s Postpaid customers Moderate 7,273.7 (w/o app-based tariffs) growth Sign
Slide 19: EBITDA-to-FCF bridge 2023
EBITDA-to-FCF bridge 2023 EBITDA-to-FCF bridge 2023 FCF quarterly breakdown in mEUR in mEUR 55-75 55-75 55-75 55-75 -50 -35 Mid point guidance: -50 >50.0% EBITDA-to-FCF conversion -75 Q1 23e Q2 23e Q3 23e Q4 23e -20 0 447.3 480 - 500 250 - 270 Even quarterly distribution without major deviations exp
Slide 20: Management Q&A
Management Q&A • Preliminary results for FY/Q4 2022 For further questions please contact: Investor Relations & ESG Reporting +49 (0)40 513 06 778 ir@freenet.ag IR website
Slide 21: EBITDA ambition 2025 not back-end loaded towards the end
EBITDA ambition 2025 not back-end loaded towards the end Road taken in 2021 continued in 2022, Ambition 2025 remains unchanged in mEUR CAGR > 4% > 4% > 4% Guidance 2023 ≥ 520.0 478.7 480-500 425.9 447.3 2020 2021 2022e 2023e 2024e 2025e FY 22/Q4 22 results - Analyst and Investor Conference Call