Slide 1: United Internet AG Fiscal year 2019 and outlook 2020
UNITED INTERNET AG Fiscal year 2019 and outlook 2020 Montabaur, March 26, 2020 1 Fiscal year 2019 & Outlook 2020 Montabaur, March 26, 2020
Slide 2: Agenda
AGENDA Ralph Dommermuth Company development 2019 Outlook 2020 Frank Krause Results for fiscal year 2019 2 Fiscal year 2019 & Outlook 2020 Montabaur, March 26, 2020
Slide 3: Company development 2019
COMPANY DEVELOPMENT 2019 3 Fiscal year 2019 & Outlook 2020 Montabaur, March 26, 2020
Slide 4: 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
Slide 5: Business areas & investments
BUSINESS AREAS & INVESTMENTS (as of: December 31, 2019) Consumer Access Business Consumer A p p l i c a t i o ns Business Partner companies 25.01 % 25.39 % 30.70 % 27.42 % Listed i n v e s t m en t s 29.90 % 5 Fiscal year 2019 & Outlook 2020 Montabaur, March 26, 2020
Slide 6: "Access" in fiscal year 2019
“ACCESS” IN FISCAL YEAR 2019 CONSUMER ACCESS CONSUMER APPLICATIONS BUSINESS ACCESS BUSINESS APPLICATIONS 6 Fiscal year 2019 & Outlook 2020 Montabaur, March 26, 2020
Slide 7: "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
Slide 8: "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 8 Fisc
Slide 9: "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 (+ 580,000) 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
Slide 10: "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
Slide 11: "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 costs “TAL” (07
Slide 12: "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
Slide 13: "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
Slide 14: "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) 14 Fiscal
Slide 15: "Applications" in fiscal year 2019
“APPLICATIONS” IN FISCAL YEAR 2019 CONSUMER ACCESS CONSUMER APPLICATIONS BUSINESS ACCESS BUSINESS APPLICATIONS 15 Fiscal year 2019 & Outlook 2020 Montabaur, March 26, 2020
Slide 16: Segment "Consumer Applications": from e-mail service to command center
SEGMENT “CONSUMER APPLICATIONS”: FROM E-MAIL SERVICE TO COMMAND CENTER FOR COMMUNICATION, INFORMATION AND IDENTITY MANAGEMENT Communication Online office and organization Texts, spreadsheets, E-mail, calendar, presentations contacts, SMS, fax Cloud storage De-Mail For photos, videos, Legally secure
Slide 17: "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
Slide 18: "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
Slide 19: "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 (
Slide 20: "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
Slide 21: "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 21 Fiscal year 2019 & Outlook 2020 Montabaur, March 26, 2020
Slide 22: "Business Applications": Assets
“BUSINESS APPLICATIONS”: ASSETS Leading European provider Active in 12 countries: #1 in Germany, Spain, Poland and Austria, #2 in UK and France* Broad product portfolio In-house developments and cooperation with development partners Powerful data centers * Based on managed ccTLDs 22 Fiscal
Slide 23: "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 23 Fis
Slide 24: "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) 24 Fiscal year 2019 & Outlook 2020 Montabaur, March 26, 2020
Slide 25: "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
Slide 26: 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
Slide 27: Outlook 2020
OUTLOOK 2020 27 Fiscal year 2019 & Outlook 2020 Montabaur, March 26, 2020
Slide 28: Outlook 2020
OUTLOOK 2020 Revenues and EBITDA at previous year's level 28 Fiscal year 2019 & Outlook 2020 Montabaur, March 26, 2020
Slide 29: Financial figures for FY 2019
FINANCIAL FIGURES FOR FY 2019 29 Fiscal year 2019 & Outlook 2020 Montabaur, March 26, 2020
Slide 30: Group: Balance sheet as of Dec 31, 2019 (assets)
GROUP: BALANCE SHEET AS OF DEC 31, 2019 (II) (acc. to IFRS in € million) 31.12.2018 01.01.2019 31.12.2019 Comments Assets (IFRS 15) (IFRS 16) (IFRS 16) (Changes to the opening balance) Capex: € 252.8m plus income from Property, plant and equipment / 2,062.6 2,346.8 3,285.6 IFRS 16: € 96.9m ; D&A:
Slide 31: Group: Balance sheet as of Dec 31, 2019 (liabilities and equity)
GROUP: BALANCE SHEET AS OF DEC 31, 2019 (II) (acc. to IFRS in € million) 31.12.2018 01.01.2019 31.12.2019 Comments Liabilities and equity (IFRS 15) (IFRS 16) (IFRS 16) (Changes to the opening balance) Equity 4,521.5 4,521.5 4,614.7 Equity ratio: 50.8 % Bank liabilities (net): Liabilities due to
Slide 32: 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
Slide 33: United Internet AG Fiscal year 2019 and outlook 2020
UNITED INTERNET AG Fiscal year 2019 and outlook 2020 Montabaur, March 26, 2020 33 Fiscal year 2019 & Outlook 2020 Montabaur, March 26, 2020