United Internet Ag · XETR:UTDI

United Internet — FY2017 Earnings Presentation

35 slides from United Internet's earnings presentation, Mar 22, 2018

  1. Slide 1: United Internet AG Fiscal year 2017 and outlook 2018

    UNITED INTERNET AG Fiscal year 2017 and outlook 2018 Frankfurt/Main, March 22, 2018 1 Fiscal year 2017 & Outlook 2018 Frankfurt/Main, March 22, 2018

  2. Slide 2: Agenda

    AGENDA  Company development 2017  Results of the fiscal year 2017  Outlook 2018 2 Fiscal year 2017 & Outlook 2018 Frankfurt/Main, March 22, 2018

  3. Slide 3: Company development 2017

    COMPANY DEVELOPMENT 2017 3 Fiscal year 2017 & Outlook 2018 Frankfurt/Main, March 22, 2018

  4. Slide 4: Highlights fiscal year 2017

    HIGHLIGHTS FISCAL YEAR 2017  Investment of Warburg Pincus in the „Business Applications“ division  United Internet share: 66.7 % / Warburg Pincus: 33.3 %  Closing as of Feb. 15, 2017  Takeover of Strato, #2 in the German hosting market  Consolidated since April 2017  Takeover of ProfitBricks,

  5. Slide 5: KPIs fiscal year 2017

    KPIs FISCAL YEAR 2017  22.89 million customer contracts: + 6.10 million, thereof 880,000 from organic growth, 1.87 million from Strato takeover, 3.35 million from Drillisch takeover Sales and earnings figures* 2016 2017 Change Sales 3,808.1 4,206.3 + 10.5 % EBITDA, operative** 835.4 979.6 + 17.3 %

  6. Slide 6: Segments: Access & Applications

    2 SEGMENTS: 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 Operational Exce

  7. Slide 7: Brands & Investments

    BRANDS & INVESTMENTS (As of: December 31, 2017) Consumer Ac cess Business Consumer Applications Business Partners 25.10 % 25.01 % 25.39 % 29.93 % 30.34% * Listed Investments 28.52 % 8.31% 10.46% * Formerly Hi-Media 7 Fiscal year 2017 & Outlook 2018 Frankfurt/Main, March 22, 2018

  8. Slide 8: "Access" in fiscal year 2017

    „ACCESS“ IN FISCAL YEAR 2017  BUSINESS ACCESS  BUSINESS APPLICATIONS  CONSUMER ACCESS  CONSUMER APPLICATIONS 8 Fiscal year 2017 & Outlook 2018 Frankfurt/Main, March 22, 2018

  9. Slide 9: Business Access

    BUSINESS ACCESS  Second-largest German fiber-optic network  Project business and plug-and-play solutions for medium-sized companies Business  Fiber-optic network with a length of 44,889 km (prior year: 41,644 km) FTTB  In 250 German cities, including Authorities 19 of the 25 largest cities  8,1

  10. Slide 10: Consumer Access: Fixed-line business

    CONSUMER ACCESS: FIXED-LINE BUSINESS  Largest alternative German DSL provider  Connect fixed line test: Winner in 2015, #2 in 2016, winner in 2017 Homes  Gradual migration from ADSL FTTC DTAG to VDSL / Vectoring  Target infrastructure: Last mile via VDSL/Vectoring from DTAG (Layer 3, in parallel

  11. Slide 11: 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 on up to 30 % of Co-brands network capacity and all future technologies  Additional wholesale contract with Discount brands Vodafone 11 Geschäftsjahr 2

  12. Slide 12: Consumer Access: Customer contracts

    CONSUMER ACCESS: CUSTOMER CONTRACTS (in million) Mobile internet DSL-complete packages (ULL)  12.64 million customer contracts with monthly basic 14.00 fees in current product-lines (+ 4,100,000), 12.64 12.00 thereof 3.35 million from Drillisch transaction +4.10 10.00  8.30 million mobile internet

  13. Slide 13: Access: Sales

    ACCESS: SALES (acc. to IFRS in € million)  € 3.193 billion sales (+ 9.4 %) 3,500 3,192.6  Consumer: € 2.782 billion (+ 15.2 %), thereof +275.4 3,000 2,917.2 + € 223.0 million from Drillisch transaction (+9.4%) 2,500 + € 52.1 million from reclassification of the mass 2,000 market business from Busi

  14. Slide 14: Access: EBITDA

    ACCESS: EBITDA (acc. to IFRS in € million)  € 622.7 million* EBITDA (+ 18.5 %) 700  Consumer: € 541.2 million (+ 36.9 %), thereof 622.7 600 +97.1 + € 56.8 million from Drillisch transaction 525.6 (+18.5%) 500 + € 34.1 million from reclassification of the mass 400 market business from Business acce

  15. Slide 15: Access: EBIT

    ACCESS: EBIT (acc. to IFRS in € million) 500 431.2 +41.3 400 389.9 (+10.6%)  € 431.2 million* EBIT (+ 10.6 %) 300  PPA writedowns on 1&1 Drillisch reducing EBIT 200 growth  13.5 % EBIT-margin (prior-year: 13.4 %) 100 0 2016 2017 * Excl. extraordinary result of € 303.0 million from Drillisch trans

  16. Slide 16: "Applications" in fiscal year 2017

    „APPLICATIONS“ IN FISCAL YEAR 2017  BUSINESS ACCESS  BUSINESS APPLICATIONS  CONSUMER ACCESS  CONSUMER APPLICATIONS 16 Fiscal year 2017 & Outlook 2018 Frankfurt/Main, March 22, 2018

  17. Slide 17: Business Applications: From webhoster to e-business solutions provider

    BUSINESS APPLICATIONS: FROM WEBHOSTER 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 advertisement solutions 17 Fiscal year 2017 & Outlook 2018 Frankfurt/Main, March 22, 2018

  18. Slide 18: Business Applications: Assets

    BUSINESS APPLICATIONS: ASSETS  Leading European provider  Active in 12 countries: #1 in Germany, Poland and Spain, #2 in UK und France*  Broad product range  In-house developments and cooperations with development partners  Powerful data centers * Measured by the number of managed country domai

  19. Slide 19: Business Applications: Customer contracts

    BUSINESS APPLICATIONS: CUSTOMER CONTRACTS (in million) Abroad Domestic 10.00 8.02 8.00  8.02 million customer contracts (+ 1,970,000), +1.97 6.00 6.05 4.01 thereof 1.87 million from Strato-takeover 3.71  4.01 million domestic 4.00  4.01 million abroad 2.00 4.01 2.34 0.00 31.12.2016 31.12.2017 19

  20. Slide 20: Consumer Applications: From e-mail service to command center

    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 music and

  21. Slide 21: Consumer Applications: Assets

    CONSUMER APPLICATIONS: ASSETS  One of the leading providers in Consumer Applications  30.5 million active user accounts in Germany – more than 50% market share in private emails eIDAS/ E-Mail* Cloud* Content* De-Mail #1 #3 #3 #1 #1 #1  Differentiation through data protection #3 #2 #2 #6 #2 #2 and

  22. Slide 22: Consumer Applications: Customer contracts

    CONSUMER APPLICATIONS: CUSTOMER CONTRACTS (in million) Accounts with Value-Added-Subscription Accounts with Premium-Mail-Subscription 2.50 2.20 2.23 +0.03  2.23 million pay products (+ 30,000) 2.00 0.48 0.56  35.42 million free accounts (+ 1,130,000), thereof 1.50  20.4 million with mobile usage

  23. Slide 23: Applications: Sales

    APPLICATIONS: SALES* (acc. to IFRS in € million) 1,200 1,041.8 +119.3  € 1.042 billion sales (+ 12.9 %) 1,000 922.5 (+12.9%)  Consumer: € 284.2 million (+ 0.2 %) 800 - weak portal advertising business in Q1 600  Business: € 762.1 million (+ 19.3 %), thereof 400 + € 104.0 million Strato-/ProfitBri

  24. Slide 24: Applications: EBITDA

    APPLICATIONS: EBITDA* (acc. to IFRS in € million) 400 371.3  € 371.3 million** EBITDA (+ 12.6 %) +41.6 350 329.7  Consumer: € 124.0 million (- 2.7 %) (+12.6%) 300 - weak portal advertising business in Q1 250  Business: € 247.3** million (+ 22.1 %), thereof 200 + € 39.7 million Strato/ProfitBricks

  25. Slide 25: Applications: EBIT

    APPLICATIONS: EBIT* (acc. to IFRS in € million) 300 289.5 274.3 +15.2 (+5.5%) 250  € 289.5 million** EBIT (+ 5.5 %) 200  PPA writedowns on Strato reducing EBIT growth 150  27.8 % EBIT-margin (prior-year: 29.7 %) 100 50 0 2016 2017 * After deconsolidation of affilinet, prior year adjusted ** Witho

  26. Slide 26: Results fiscal year 2017

    RESULTS FISCAL YEAR 2017 26 Fiscal year 2017 & Outlook 2018 Frankfurt/Main, March 22, 2018

  27. Slide 27: Group: Customers, sales and results as of Dec. 31, 2017

    GROUP: CUSTOMERS, SALES AND RESULTS AS OF DEC. 31, 2017 (contracts in million/ financial figures acc. to IFRS in € million; after deconsolidation affilinet) 2016* 2017** Change Customer contracts in current product-lines 16.79 22.89 + 6.10 million Sales 3,808.1 4,206.3 + 10.5 % EBITDA, operative** 8

  28. Slide 28: Group: Balance sheet as of 31 December 2017 (I)

    GROUP: BALANCE SHEET AS OF 31 DECEMBER 2017 (I) (acc. to IFRS in €k) Assets 31.12.2016 31.12.2017 Comments Property, plant and equipment / intangible  Capex: € 233.5m; D&A: € 295.1m 1,024,476 2,140,762 assets  Increase due to Strato/Drillisch transaction Goodwill 1,087,685 3,579,780  Increase due

  29. Slide 29: Group: Balance sheet as of 31 December 2017 (II)

    GROUP: BALANCE SHEET AS OF 31 DECEMBER 2017 (II) (acc. to IFRS in €k) Liabilities and equity 31.12.2065 31.12.2017 Comments Equity 1,197,812 4,050,559  Equity ratio: 53.3 % (prior year 29.4 %)  Bank liabilities (net): Liabilities due to banks 1,760,653 1,955,781 €1,713.3m (prior year: €1,658.9m) T

  30. Slide 30: Group: Balance sheet as of 31 December 2017 (III)

    GROUP: BALANCE SHEET AS OF 31 DECEMBER 2017 (III) (acc. to IFRS in €k) 31.12.2016 31.12.2017 Comments Operative cash flow 644,203 656,394  2017 without capital gains tax refund Cash flow from operating activities 486,983 655,706 (€70.3m)  Capex: €233.5m (prior year: €168.9m); transactions: € 528.1

  31. Slide 31: Outlook 2018

    OUTLOOK 2018 31 Fiscal year 2017 & Outlook 2018 Frankfurt/Main, March 22, 2018

  32. Slide 32: Roadmap 2018 (I)

    ROADMAP 2018 (I)  Business Access  Further expansion of the fiber optic network – organically and through acquisitions  Development of BNGs for VDSL/Vectoring based on Layer-2 (Target 2018: approx. 500 of 897 BNGs)  Consumer Access  Consistent management team  Merger of previously separated or

  33. Slide 33: Roadmap 2018 (II)

    ROADMAP 2018 (II)  Business Applications  Technical projects for platform integration  Rebranding of 1&1 Hosting division  Consumer Applications  Reduction of advertising space at GMX and WEB.DE  Expansion of data-driven business models for better monetization of advertising space  Start of n

  34. Slide 34: Guidance 2018

    GUIDANCE 2018  Sales increase to approx. € 5.2 billion  Strong contract growth  Consolidation of Strato / ProfitBricks and 1&1 Drillisch for a full year  Increased use of subsidized smartphones in connection with the earlier realization of hardware sales in accordance with IFRS 15 (sales effect:

  35. Slide 35: United Internet AG: Our success story continues!

    UNITED INTERNET AG Our success story continues! 35 Fiscal year 2017 & Outlook 2018 Frankfurt/Main, March 22, 2018

United Internet — FY2017 Earnings Presentation on 6ix