Freenet Ag · XETR:FNTN

Freenet — Q1 2012 Earnings Presentation

15 slides from Freenet's earnings presentation, May 11, 2012

  1. Slide 1: Management Presentation Q1/2012 Results

    Management Presentation Q1/2012 Results 11.05.2012

  2. Slide 2: Cautionary statement

    Cautionaryy statement This presentation contains forward forward-looking 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 expresse

  3. Slide 3: Successful Q1 shows continuity in performance improvement

    Successful Q1 shows continuityy in performance improvement  Customer ownership 8,157,000 8 157 000 (+37,000) (+37 000)  Postpaid ARPU increased to 23.4 € compared to 23.3 € Q1/11  EBITDA is up to 85.1 85 1 m€  Free Cash Flow amounts 72.4 m€  Revenue is in line with expectations  Confirmation o

  4. Slide 4: freenet AG changes its agenda from internal to external focus

    freenet AG changes g its agenda g from internal to external focus Q1/2012 Q2 - Q4/2012  Optimization of product and tariff  Launch and penetration of new branding campaign with significant portfolio mainly in the flat segment investment into TV and online advertising  Change in purchase model for

  5. Slide 5: mobilcom debitel shops rolemodell for the entire company

    mobilcom debitel shops rolemodell for the entire company Situation 2008 Situation 2012  >25% contribution from other than postpaid and prepaid contracts  10 relevant portfolios  Postpaid, Prepaid  98% of contribution comes from postpaid and  strong renewal business prepaid contracts  No-frills

  6. Slide 6: Management confident about stable customer base in 2012

    Management g confident about stable customer base in 2012 Customer base Customer base (thousand users) Total customer base 15,64 , 15,19 14 74 14,74 Prepaid customers 7,65 7,07 6,58  Customer ownership (postpaid and no-frills segment) slightly growing to 8.15 million customers + 37.000 versus Q4/20

  7. Slide 7: Seasonal comparison shows strong postpaid ARPU

    Seasonal comparison shows strong g postpaid ARPU ARPU ARPU (€ / month) 23.3 23.4  Postpaid ARPU with slight uplift to 23.4 Euro  Data share still growing with 18.1% 4.5 3.9  No-frills ARPU going down due to migratory 3.0 2.8 movements with a long term profitability improvement  Prepaid ARPU show

  8. Slide 8: Financial statements – income statement (1/2)

    Financial statements – income statement (1/2) ( ) In € million Q1/2012 Q1/2011 ∆ ∆ in % Revenue 744,193 788,811 -44,618 -5.7% Gross profit 166,852 164,709 2,143 1.3% EBITDA 85,092 78,441* 6,651 8.5% Depreciation and amortisation -37,070 37 070 -45,815 45 815 8 745 8,745 19 1% 19.1% EBIT 48,022 32,62

  9. Slide 9: Financial statements – income statement (2/2)

    Financial statements – income statement (2/2) ( ) In € million Q1/2012 Q1/2011 ∆ ∆ in % EBT 37,566 23,340 14,226 61.0% Taxes on income 3,069 2,564 505 19.7% Group result from continued operations 40,635 25,904 14,731 56,9% Group result from discontinued operations 0 140 -140 140 -100,0% 100 0% Group

  10. Slide 10: Financial statements – balance sheet

    Financial statements – balance sheet Assets Shareholders‘ equity and liabilities in € million in € million 31.3.2012 31.12.2011 31.3.2012 31.12.2011 485.3 452.3 Intangible assets 1,211.9 Shareholders‘ equity 1,171.3 1,116.9 1,116.9 Goodwill 582.8 Borrowings 715.1 471.5 412.3 Trade accounts receivabl

  11. Slide 11: Financial statements – cash flow statement

    Financial statements – cash flow statement In € million Q1/2012 Q1/2011 ∆ ∆ in % Cash flow from operating activities 74.7 76.3 -1.6 2.1% Cash flow from investing activities -1.6 -3.4 1.8 52.9% Cash flow from financing activities -42 1 -42.1 -43 3 -43.3 12 1.2 2 8% 2.8% Change in cash and cash equiva

  12. Slide 12: Detailed bridge from EBITDA to free cash flow

    Detailed bridge from EBITDA to free cash flow Free cash flow bridge Q1/2012 in € million 85 1 85.1 -4.9 -2.2 -5.3 53 -0.3 03 72.4 EBITDA Change in net Capex Tax Other Free cash working capital payments flow FY 340 ~ -50 ~ -20 ~ -30 240 2012e: 12 | Management Presentation | May 2012

  13. Slide 13: Guidance 2012 and outlook 2013 – Continuation of the current strategy

    Guidance 2012 and outlook 2013 – Continuation of the current strategy R Results lt 2011 G id Guidance 2012 O tl k 2013 Outlook Contract customer base -366,000 customers Postpaid ARPU Stable at 23.8 € Group revenue 3.22 bn€ Group p EBITDA 337.4 m€ 340 m€ 340 m€ Free cash flow (FCF)1 241.0 m€ 240 m€ 2

  14. Slide 14: Summary

    Summaryy  The first quarter of 2012 makes the management very confident about the business performance  Relevant KPIs performed within the expectation of the management  New purchase plans provide additional opportunities to ensure business performance  New tests i.e. mobilcom debitel smart home

  15. Slide 15: freenet AG Investor Relations contact

    freenet AG freenet AG Hollerstraße 126 I Investor Relations R l i 24782 Büdelsdorf +49 (0)40 51306 778 www.freenet-group.de investor.relations@freenet.ag

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