Financial Statement 2025

Annual Financial Statements 2025

MANAGEMENT REPORT FOR THE GROUP AND PARENT COMPANY

ANNUAL FINANCIAL STATEMENTS OF THE PARENT COMPANY ACC. TO HGB

COMBINED MANAGEMENT REPORT

1. GROUP AND COMPANY PROFILE 4

   1. Business model 4

   2. Strategy 13

   3. Management systems 14

   4. Main focus areas for products and innovations 16

2. ECONOMIC REPORT 19

   1. General economic and sector conditions 19

   2. Business development 26

   3. Position of the Group 48

   4. Position of the Company 59

3. SUBSEQUENT EVENTS 62

4. NONFINANCIAL GROUP STATEMENT 63

   1. General Disclosures 64

   2. Environmental Information 80

   3. Social Information 112

   4. Governance Information 158

5. RISK, OPPORTUNITY, AND FORECAST REPORT 171

   1. Risk report 171

   2. Opportunity report 184

   3. Forecast report 189

6. INTERNAL CONTROL SYSTEM UND RISK MANAGEMENT SYSTEM 195

7. DISCLOSURES REQUIRED BY TAKEOVER LAW 198

8. DECLARATION ON COMPANY MANAGEMENT 206

9. DEPENDENT COMPANY REPORT 224

Notice of unaudited sections in the Combined Management Report of United Internet AG for the Company and the Group as of December 31, 2025

In addition to regular management report disclosures, it is possible that reporting may also include non-management report-related disclosures (those not required by law) which are not subject to a substantive audit by the auditor. Moreover, certain information may not be verifiable by the auditor: such "non-auditable information" cannot be assessed by the auditor due to the nature of the disclosures or the absence of suitable criteria.

In the Combined Management Report of United Internet AG for the Company and the Group as of December 31, 2025, the following chapters or disclosures were identified as "non-audited management report disclosures":

• The disclosures made in the subsection "1.4 Main focus areas for products and innovations" are "non-audited management report disclosures", as the content of "non-management report-related disclosures" is not audited.

• The "quarterly development" tables contained in the subsections "2.2 Business development" and "2.3 Position of the Group" with key financial figures on a quarterly basis for the segments and the Group are "non-audited management report disclosures" as United Internet does not subject its Interim Financial Statements to a review or audit. The quarterly figures are marked accordingly as "unaudited".

• The disclosures made in chapter "4. Non-financial Group Statement" are subject to a "limited assurance" review and not a "reasonable assurance" review.

• The German Corporate Governance Code (the "Code") recommends additional disclosures on the internal control and risk management system that go beyond the statutory requirements for the management report and are not included in the auditor's review of the content of the management report ("non-management report-related disclosures"). In chapter 5 "Internal control and risk management system", they are thematically assigned to the main elements of the internal control and risk management system and are separated from the disclosures to be audited by separate paragraphs and marked accordingly as "unaudited".

• The disclosures made in chapter "8. Declaration on Company Management" are "non-audited management report disclosures" as an audit of the disclosures contained in the Declaration on Company Management in accordance with section 317 (2) sentence 6 German Commercial Code ("Handelsgesetzbuch" - HGB) is limited to the fact that the information has been provided and the Corporate Governance Report in chapter 8 constitutes a "non-management report-related disclosure" which is not subject to a substantive audit.

  General notes

• Due to calculation processes, tables and references may produce rounding differences from the mathematically exact values (monetary units, percentage statements, etc.).

• For reasons of better readability, the additional use of the female form is omitted in this report. United Internet would like to stress that the use of the masculine form is to be understood purely as the gender-neutral form.

• These Annual Financial Statements are available in German and English. Both versions can also be downloaded at https://www.united-internet.de. In all cases of doubt, the German version shall prevail.

1. GROUP AND COMPANY PROFILE

   1. Business model

      Group structure

      Founded in 1998 and based in Montabaur, Germany, United Internet AG ("United Internet") is the parent company of the United Internet Group.

      Together with its service company United Internet Corporate Services GmbH, United Internet AG focuses mainly on centralized functions in the areas of Finance, Corporate Controlling & Accounting, Tax, Investment Management, Press Relations, Investor Relations, Legal, Corporate Governance, Compliance & Sustainability, Risk Management, Corporate Audit, HR Management, Facility Management, Procurement, and Corporate IT.

      Compared to the previous year, the Group structure as of December 31, 2025 is largely unchanged from the previous year. The most significant change resulted from the intra-group sale of United Internet Management Holding SE, including its subsidiary 1&1 Versatel GmbH, to 1&1 AG, with economic effect as of November 30, 2025.

      Operating activities in the Consumer Access segment are mainly managed by the companies Drillisch Online GmbH and 1&1 Telecom GmbH under the umbrella of 1&1 AG.

      In its Business Access segment, United Internet mainly operates via 1&1 Versatel GmbH, which is now also held by 1&1 AG via the holding companies Blitz 17-665 SE and United Internet Management Holding SE.

      Operating activities in the Consumer Applications segment are primarily managed via the companies 1&1 Mail & Media GmbH, 1&1 Mail & Media Inc., and United Internet Media GmbH, pooled together under 1&1 Mail & Media Applications SE.

      In its Business Applications segment, United Internet is primarily active via its shares in STRATO GmbH and its subsidiary Cronon GmbH - held by the holding companies IONOS Group SE and IONOS Holding SE - as well as in IONOS SE and its main domestic and foreign subsidiaries. In addition to the foreign subsidiaries IONOS Inc. (USA), IONOS Cloud Ltd. (UK), IONOS S.A.R.L. (France), and IONOS Cloud S.L.U. (Spain), these mainly comprise Arsys Internet S.L.U. (Spain), Fasthosts Internet Ltd. (UK), home.pl Sp. z

      o.o. (Poland), the German companies InterNetX GmbH, united-domains GmbH, we22 GmbH, and World4You Internet Services GmbH (Austria), as well as the discontinued operation Sedo GmbH.

      In addition to these operating and fully consolidated subsidiaries, United Internet held a number of other investments as of December 31, 2025. These mainly consist of equity interests - held by United Internet Investments Holding AG & Co. KG - in Kublai GmbH, Frankfurt am Main (4.71%), which in turn holds 97.67% of shares in Tele Columbus AG, Berlin, and investments in the strategic partners Open-Xchange AG, Cologne (25.39%), rankingCoach GmbH, Cologne (31.52%), uberall GmbH, Berlin (25.10%), and AWIN AG, Berlin (20.00%), as well as the investment in Stackable GmbH, Pinneberg (27.54%) held by IONOS SE.

      Further details on these investments and changes in investments are provided in chapter 2.2 "Business development" under "Group investments".

      A simplified illustration of the Group structure of United Internet with its significant operating subsidiaries and investments - as of December 31, 2025 - is shown in the following chart.

      
      
      

      (1) Offered for sale and not disclosed as continued operation

      Business operations

      With over 29 million fee-based customer contracts and around 39 million ad-financed free accounts, United Internet is one of Europe's leading internet specialists.

      The Group's operating business is divided into the business divisions "Access" and "Applications", which in turn are divided into the segments "Consumer Access" and "Business Access", as well as "Consumer Applications" and "Business Applications".

      Consumer Access segment

      The Consumer Access segment comprises landline-based broadband products (including the respective applications, such as home networks, online storage, Smart Home, IPTV, and video-on-demand), as well as mobile internet products for private users.

      These internet access products are offered to customers as subscription contracts with fixed monthly fees (and variable, volume-based charges).

      With its broadband products under the 1&1 brand (especially VDSL/vectoring and fiber-optic connections), United Internet is one of Germany's leading suppliers.

      The Company uses 1&1 Versatel's fiber-optic network as the transport network for VDSL/vectoring connections and direct fiber-optic connections (FTTH) with the "last mile" being provided by city carriers and Deutsche Telekom (mainly Layer-2).

      United Internet is also one of the leading providers of mobile internet products in Germany.

      1&1 operates a powerful mobile communications network, which is used by over 12 million customers. In December 2025, just two years after the launch of mobile services, the 1&1 mobile network reaches 27% of all German households. It is being continuously expanded. Wherever 1&1 does not yet have sufficient mobile coverage during the years of network expansion, it uses national roaming. A national roaming partnership with Vodafone started in late August 2024. National roaming via Vodafone has been used by all 1&1 mobile customers since late 2025. National roaming services were previously procured from Telefónica.

      Mobile internet products are marketed via the premium brand 1&1 as well as via discount brands, such as winSIM and yourfone, which enable the Company to target a wide range of specific user groups in the mobile communications market.

      Business Access segment

      In the Business Access segment, 1&1 Versatel offers a wide range of telecommunication products and solutions for business customers.

      The core of the business model is a fiber-optic network with a length of over 68,000 km, which is one of the largest networks in Germany and is constantly being expanded.

      1&1 Versatel uses this network to offer telecommunication products - from standardized fiber-optic direct connections to tailored ICT solutions (voice, data, and network solutions) - to companies and local authorities. In addition, the 1&1 fiber-optic network is used to provide 1&1 DSL and FTTH connections and to connect antenna locations. Infrastructure services (wholesale) for national and international carriers are also provided.

      Consumer Applications segment

      Applications for home users are pooled in the Consumer Applications segment. These mainly comprise Personal Information Management applications (e-mail, to-do lists, appointments, addresses), online storage (cloud), and office software.

      By steadily developing this portfolio over the past years, the GMX and WEB.DE brands - the most widely used e-mail providers for German consumers for many years now - have been expanded into complete command centers for communication, information, and identity management into which an increasing number of AI applications are being integrated.

      Applications for home users are nearly all developed in-house and operated at the Group's own data centers. Products are offered as fee-based subscriptions (pay accounts) or - for free - in the form of ad-financed free accounts. The latter are monetized via online advertising, which is marketed by United Internet Media.

      With its ad-financed applications and fee-based consumer applications, United Internet is primarily active via GMX and WEB.DE in Germany, Austria, and Switzerland, where it is among the leading players. International expansion in this segment is being driven via the mail.com brand. In addition to the USA, mail.com targets countries such as the UK, France, and Spain.

      Business Applications segment

      In the Business Applications segment, IONOS opens up online business opportunities for freelancers and SMEs, while also helping them to digitize their processes. It offers a comprehensive range of powerful applications, such as domains, websites, web hosting, servers, e-shops, group work, online storage (cloud), and office software, which can be used via subscription agreements. In addition, cloud solutions and cloud infrastructure are offered.

      These business applications are developed at in-house development centers or in cooperation with partner firms and operated on around 95,000 servers.

      With activities in various European countries (Germany, France, the UK, Spain, Italy, the Netherlands, Austria, Poland, Hungary, Romania, Bulgaria, Czech Republic, Slovakia, and Sweden) as well as in North America (the USA, Canada, Mexico), IONOS is also a leading global player in this segment.

      Business applications are marketed to specific target groups via the brands IONOS, Arsys, Fasthosts, home.pl, InterNetX, STRATO, united-domains, and World4You. In addition, we22 offers other hosting suppliers a white-label website builder for the creation of high-quality websites.

      Divisions, segments, and main brands (as of: December 31, 2025)
      
      

      Management

      The Management Board of United Internet AG comprised the following members in the fiscal year 2025:

      Management Board members as at December 31, 2025

      ⯀ Ralph Dommermuth, founder and Chief Executive Officer (with the Company since 1988)

      ⯀ Carsten Theurer, Chief Financial Officer (CFO) (with the Company since January 1, 2025)

      ⯀ Markus Huhn, Management Board member responsible for Shared Services (with the United Internet Group since 1994; until December 31, 2025)

      Markus Huhn, Management Board member of United Internet AG responsible for Shared Services, stepped down from his position as a member of the Management Board of United Internet AG at his own request as of December 31, 2025. Chief Financial Officer Carsten Theurer has additionally assumed the former responsibilities of Mr. Huhn since the end of the fiscal year 2025.

      The Supervisory Board of United Internet AG comprised the following members in the fiscal year 2025:

      Supervisory Board members as at December 31, 2025

      ⯀ Philipp von Bismarck, Chairman

      (member since July 2020; Chairman since May 2021; member of the Audit and Risk Committee since May 2021)

      ⯀ Dr. Manuel Cubero del Castillo-Olivares, Deputy Chairman (member since May 2020; Deputy Chairman since May 2021)

      ⯀ Stefan Rasch

      (member since May 2021; member of the Audit and Risk Committee since May 2021)

      ⯀ Prof. Dr. Franca Ruhwedel

      (member since May 2023; Chairwoman of the Audit and Risk Committee since January 2024)

      ⯀ Christian Unger

      (member since May 2025; member of the Audit and Risk Committee since May 2025)

      ⯀ Prof. Dr. Yasmin Mei-Yee Weiß (member since July 2020)

      Main markets and competitive standing

      Germany is the most important sales market of the United Internet Group by far and accounted for around 90% of total global sales in the fiscal year 2025.

      Besides Germany, the Group's most important sales markets are

      ⯀ the USA,

      ⯀ the UK,

      ⯀ Spain,

      ⯀ France,

      ⯀ Poland, and

      ⯀ Austria.

      Competitive standing in the Consumer Access segment

      Following the merger with Drillisch AG (now 1&1 AG) in 2017, United Internet is the fourth force in Germany's telecommunications market with landline and mobile products in its purely domestic Consumer Access segment - based on customer contracts and sales revenues - after Deutsche Telekom, Vodafone, and Telefónica Germany.

      Competitive standing in the Business Access segment

      United Internet is also a leading company in its Business Access segment, whose operations are also limited to Germany. With the fiber-optic network of 1&1 Versatel spanning over 68,000 km, United Internet operates one of Germany's largest fiber-optic networks.

      Competitive standing in the Consumer Applications segment

      In its Consumer Applications segment, United Internet operates in Germany, Switzerland, and Austria via the GMX and WEB.DE brands, as well as in countries such as the USA, UK, France, and Spain via the international brand mail.com. United Internet is the leading provider of e-mail services and one of the leaders in cloud services in its domestic German market - based on the number of users.

      Competitive standing in the Business Applications segment

      In the globally aligned Business Applications segment, United Internet is active in a total of 17 countries with its hosting and cloud applications. The Company has long been the market leader in the German hosting business - based on the number of managed country domains - and strengthened its position in 2017 with the takeover of its competitor STRATO. In other European countries, United Internet's hosting applications are now available in all major markets - either locally or from Germany. In addition to the domestic German market, these mainly include the major European economies of France, the UK, Italy, Poland, and Spain. With the exception of Italy, the Company is one of the leading suppliers -

      measured by the number of managed country domains - in the aforementioned countries. All in all, therefore, United Internet is also one of Europe's leading hosting providers - based on the number of managed country domains. Further target markets outside Europe are the North American countries Canada, USA, and Mexico. In the most important of these markets, the USA, United Internet is also one of the leading players in this segment - based on the number of managed country domains.

      From a global perspective, United Internet is thus also one of the leading companies in the hosting business.

      Main locations

      In its continued operations, the United Internet Group employed a total of 10,547 people worldwide at around 40 domestic and foreign facilities as of December 31, 2025.

      Main locations (by headcount; > 50 employees)
      Location		Segment		Main Company
      Montabaur (HQ)		Corporate functions		United Internet
      		Consumer Access		1&1
      Karlsruhe		Corporate functions		United Internet
      		Consumer Access		1&1
      		Consumer Applications		1&1 Mail & Media Applications
      		Business Applications		IONOS
      Berlin		Consumer Access		1&1
      		Business Access		1&1 Versatel
      		Business Applications		IONOS, Strato, we22
      Dusseldorf		Consumer Access		1&1
      		Business Access		1&1 Versatel
      Cebu City (Philippines)		Business Applications		IONOS
      Madrid / Logroño / Barcelona / Lugo ... (Spain)		Business Applications		IONOS, Arsys
      Essen		Business Access		1&1 Versatel
      Munich		Consumer Access		1&1
      		Consumer Applications		1&1 Mail & Media Applications
      Zweibrücken		Consumer Access		1&1
      		Business Applications		IONOS
      Szczecin (Poland)		Business Applications		home.pl
      Flensburg		Business Access		1&1 Versatel
      Frankfurt am Main		Consumer Access		1&1
      		Business Access		1&1 Versatel
      Bucharest (Romania)		Business Applications		IONOS
      Gloucester / Worcester (UK)		Business Applications		IONOS, Fasthosts
      Krefeld		Consumer Access		1&1
      Stuttgart		Business Access		1&1 Versatel
      Philadelphia / Lenexa (USA)		Business Applications		IONOS
      Regensburg		Business Applications		InterNetX
      Cologne		Business Applications		we22
      Starnberg		Business Applications		united-domains
      Linz / Vienna (Austria)		Business Applications		World4You

   2. Strategy

      United Internet's business model is based predominantly on customer contracts (electronic subscriptions) with fixed monthly amounts and contractually agreed terms. Such a business model ensures generally stable and plannable revenue and cash flows, protects against macroeconomic effects, and provides the financial scope to grasp opportunities in new or extended business fields and new or extended markets - organically, or via acquisitions and investments.

      The large number of customer relationships helps the Company to utilize so-called economies of scale: the more customers using the products created by its development teams and operated at its own data centers, and/or transport data via its own networks, the greater the profit will be. These profits can then be invested in new customers, new developments, and new or extended business fields.

      From the current perspective, Cloud Applications and Mobile Internet will be the growth markets over the coming years. With its clear positioning in the Access and Applications segments, United Internet is well placed to exploit the expected market potential.

      In view of the dynamic market development of Cloud Applications and Mobile Internet, the Company's growth opportunities are clearly apparent: universally accessible, increasingly powerful broadband connections are enabling new and more sophisticated cloud applications. These internet-based programs for private users and companies will also be United Internet's growth drivers in the years ahead - both as stand-alone products in the Applications division, as well as in combination with landline and mobile access products in the Access division.

      With its many years of experience as an access and application provider, its expertise in software development and data center operation, marketing, sales, and customer support, as well as its strong and well-known brands (such as 1&1, GMX, and WEB.DE), and customer relationships with millions of private users, freelancers, and small companies in Germany and abroad (currently over 68 million user accounts worldwide), the Company is excellently positioned.

      In order to leverage this positioning for further sustainable growth, United Internet will continue to invest heavily in new customers, new products, and new or extended business fields, as well as in its further internationalization.

      In addition to organic growth, United Internet also continuously seeks possibilities for company acquisitions, investments, and partnerships in order to extend its market positions, vertical integration levels, and expertise.

      Thanks to its high and plannable level of free cash flow, United Internet has a strong source of internal funding as well as good access to debt financing markets. Further information on the Company's equity strength and external financing is presented in the chapters 2.2 "Business development" and 2.3 "Position of the Group".

      Further information on strategy, opportunities, and targets is included in the "Risk, Opportunity, and Forecast Report" in chapter 5.

   3. Management systems

      The internal management systems help the management team steer and monitor the Group and its segments. The systems consist of actual situation, planning, and forecast calculations based on the Group's annually revised strategic planning. Particular attention is paid to market developments, technological developments, and trends, as well as their impact on the Group's own products and services, and the Group's financial possibilities. The corporate management system's aim is the continuous and sustainable development of United Internet AG and its subsidiaries.

      The Group's reporting system comprises the monthly profit calculations and quarterly IFRS-compliant reports for all consolidated subsidiaries. It presents the financial position and performance of the Group and all divisions. Financial reporting also includes other detailed information which is required for the assessment and control of the operating business.

      Quarterly reports on significant risks for the Company represent a further component of the management systems.

      The above mentioned reports are discussed at meetings of the Management Board and Supervisory Board and provide the fundamental basis for assessments and decisions.

      In order to steer the Group's performance, United Internet AG uses in particular the key figures of the Income Statement (sales, EBITDA, EBIT, EPS), the Cash Flow Statement (free cash flow), and the Balance Sheet (asset items, financial liabilities).

      Information on the use and definition of the relevant key financial figures is presented in chapter 2.2 "Business development".

      The Management Board of United Internet AG steers the segments mainly on the basis of key performance figures. It measures the success of each segment primarily according to sales, EBITDA, and EBIT, according to IFRS.

      The main non-financial key figures used are the number and growth of fee-based customer contracts, as well as ad-financed free accounts.

      The performance indicators of the United Internet Group for top management are also presented in "Segment reporting" under note 5 of the Notes to the Consolidated Financial Statements.

      The key performance indicators (KPIs) used by top management at Group level are sales and operating (i.e., adjusted for special items) EBITDA according to IFRS. These figures are also used in forecast reporting.

      Due to its role as the holding company, United Internet AG (parent company) is mainly influenced by its investment result (profit transfers and dividends) and interest result and therefore focuses on its investment result and net income.

      The number of customer contracts, the gross and net sales figures, and the related customer acquisition costs in particular - compared to the Company's plans and forecast calculations - serve as early warning indicators.

      The KPIs used in the fiscal year 2025 were unchanged from the previous year.

      A comparison of the KPIs stated in the forecast and the actual figures is provided in this Management Report in chapter 2.2 "Business development" in the section "Actual and forecast development".

   4. Main focus areas for products and innovations

      The disclosures made in the section "1.4 Main focus areas for products and innovations" are "non-audited management report disclosures", as the content of "non-management report-related disclosures" is not audited.

      As an internet service provider, the United Internet Group does not engage in research and development (R&D) on a scale comparable with manufacturing companies. Also within the context of its own sector, research and development expenditures play a fairly subordinate role. Against this backdrop, United Internet does not disclose key figures for R&D.

      At the same time, the United Internet brands stand for high-performance internet access, solutions, and innovative web-based products and applications which are mostly developed in-house. The success of United Internet is rooted in an ability to develop, combine, or adapt innovative products and services, and launch them on major markets.

      Thanks to its high-performance development centers (especially in Karlsruhe, Berlin, and Bucharest) with around 3,750 programmers, product managers, and technical administrators, United Internet is able to react swiftly and flexibly to new ideas and trends, and to continuously enhance its established products by adapting them to changing market needs - a key success factor in the fast-moving internet market. The Company's expertise in product development, enhancement, and rollout minimizes its reliance on third party development work and supplies in many areas, and thus ensures decisive competitive and time-to-market advantages.

      Due to the steady growth in customer figures, the demands placed on reliability and availability are constantly rising. In addition to the further development of existing products and continuous optimization of back-end operations, the Company also focuses on enhancing existing processes in order to raise system reliability, and thus also customer satisfaction.

      Focus areas 2025

      Consumer Access

      ⯀ Expansion of footprint for sales of 1&1 fiber-optic products (FTTH) with the inclusion of partners such as Gelsennet, EWE-TEL, and Deutsche Glasfaser

      ⯀ Introduction of Wi-Fi calling abroad: this enables mobile customers to use their phones automatically via Wi-Fi access even when abroad

      ⯀ Optimization of eSIM switching processes: automated processes provided for Apple and Google devices, enabling customers to transfer their eSIM from one device to another with minimal effort using a digitalized process

      ⯀ New process for changing providers: the new process allows customers to switch to 1&1 without interruption, even without transferring their phone number

      ⯀ Improved fast activation for DSL and fiber optic connections: clear identification of end-user devices (routers) used in the network (hardware identification) significantly speeds up the activation of broadband connections

      ⯀ Optimization of product and supplier management: during broadband expansion, multiple lines are available for providing broadband connections at many locations; by optimizing management and selecting the best possible pre-product (line), 1&1 can offer customers the best connection at their location

      Business Access

      ⯀ Rollout of the new XGS-PON technology, a standard for passive optical networks (PON) that supports symmetrical data transmission at high speeds of up to 10 Gbit/s

      ⯀ Introduction of new encryption technologies to increase the security of business connections

      ⯀ Expansion of offerings for the NE4 ("last mile") of 1&1 Versatel customers, including the introduction of a fiber-copper converter

      ⯀ Introduction of an additional SD-WAN solution with LANCOM as a site networking solution "made in Germany"

      ⯀ Expansion of fiber-optic footprint for 1&1 Versatel customers through the purchase of FttH access via third-party carriers using the 1&1 Versatel Open Access platform

      Consumer Applications

      ⯀ Establishment of an LLM infrastructure (LLM = Large Language Model) for secure and high-performance provision of LLMs for integration into mail products and internal use cases

      ⯀ Introduction of "Inbox Ad Image" product in Ad Manager for 1&1 Mail & Media customers

      ⯀ Support for permanent login of GMX customers to increase security and simplify use

      ⯀ Expansion of the cloud product with the introduction of a photo timeline on iOS, pooling of photos by social events, and photo memories on the web

      ⯀ New AI features for emails (pay): translation, summary, and writing assistance

      ⯀ New, flexible registration process to improve conversion through simpler operation and modern design, with a better basis for monetization and fraud prevention

      ⯀ Development and launch of an identity hub that combines different identification methods (including video identification and eID), reduces costs, and offers customers more options

      ⯀ CMS-based upselling in mobile apps to increase sales

      ⯀ Enhancement of the premium order platform to introduce new, flexible premium mail tariffs

      ⯀ Event-driven subscription and retention architecture to support personalized offers and churn prevention

      ⯀ Customer self-care relaunch with configurable cancellation flows and value-based retention discounts to prevent churn for web and mobile

      ⯀ Introduction of AI-supported automation in the customer service system for fully automated processing of selected customer issues, based on the LLM infrastructure

      ⯀ Development and rollout of a personalized "Deals & Offers" platform in the app with freephone integration and personalized targeting based on mail and media profile characteristics

      Business Applications

      ⯀ IONOS launches IONOS GPT, a secure and sovereign European ChatGPT alternative - free of charge and GDPR-compliant

      ⯀ Expansion of private cloud with Bring Your Own IP (BYOIP), vSAN Enterprise, and NFS Snapshots

      ⯀ Expansion of Image Factory to include Managed Kubernetes (MK8s) images for IONOS Cloud

      ⯀ Opening of a new co-location data center in Frankfurt am Main

      ⯀ Global expansion of the content delivery network (CDN) minimizes latency through intelligent routing and ensures worldwide availability of content

      ⯀ IONOS Network File Storage (NFS) offers scalable performance for demanding workloads based on the NFSv4.2 protocol and SSD technology

      ⯀ SUSE LINUX Enterprise Server (SLES) offers customers cost-effective use of their own licenses (BYOS) in the IONOS Public Cloud

      ⯀ With the development of a powerful video conferencing solution, the Nextcloud portfolio has been expanded into a comprehensive, digitally sovereign collaboration platform

      ⯀ IONOS Cloud GPU VMs based on NVIDIA H200 GPUs offer direct hardware access for demanding AI and high-performance computing

      ⯀ IONOS Dedicated GPU Servers provide NVIDIA H100/H200 GPUs without virtualization overhead to deliver maximum performance for complex AI training

      ⯀ With IONOS Momentum, an integrated ecosystem is being developed that pools infrastructure and applications for data privacy-compliant AI use, enabling companies to seamlessly transition to AI-supported processes

      ⯀ As an intelligent voice assistant, the AI Phone Receptionist automates business calls in natural language and integrates seamlessly into existing systems

2. ECONOMIC REPORT

   1. General economic and sector conditions

      General economic development

      In its latest economic outlook (World Economic Outlook, Update January 2026), the International Monetary Fund (IMF) reported growth of 3.3% for the global economy in 2025, based on preliminary calculations. Growth was thus exactly on a par with the prior-year level (3.3%).

      In the United Internet Group's target markets in North America, the IMF anticipates noticeable growth for 2025 - but at a lower level than in the previous year. The IMF calculated growth of 2.1% for the USA (prior year: 2.8%), of 1.6% for Canada (prior year: 2.0%), and of 0.6% for Mexico (prior year: 1.4%).

      The situation for United Internet's most important target markets in Europe is as follows: the IMF anticipates growth of 0.8% for France in 2025 (prior year: 1.1%), of 2.9% for Spain (prior year: 3.5%), of 0.5% for Italy (prior year: 0.7%), and of 3.3% for Poland (prior year: 3.0%). Growth of 1.4% (prior year: 1.1%) is forecast for the UK.

      With regard to Germany - United Internet's most important market by far (sales share 2025: around 90%) - the IMF expects economic output to rise again for the first time in 2025, by 0.2% (previous year:

      -0.5%).

      Multi-period overview: GDP trend in United Internet's key target countries and regions

      	2021		2022		2023		2024	2025	YoY change
      World	6.2%		3.5%		3.3%		3.3%	3.3%	+/-0.0%-points
      USA	5.9%		1.9%		2.9%		2.8%	2.1%	-0.7%-points
      Canada	5.0%		3.8%		1.5%		2.0%	1.6%	-0.4%-points
      Mexico	4.7%		3.9%		3.3%		1.4%	0.6%	-0.8%-points
      France	6.8%		2.5%		1.1%		1.1%	0.8%	-0.3%-points
      Spain	5.5%		5.8%		2.7%		3.5%	2.9%	+0.4%-points
      Italy	6.7%		3.7%		0.7%		0.7%	0.5%	-0.2%-points
      Poland	6.9%		5.3%		0.1%		3.0%	3.3%	-0.6%-points
      UK	7.6%		4.3%		0.3%		1.1%	1.4%	-0.6%-points
      Germany	2.6%		1.8%		-0.3%		-0.5%	0.2%	+0.7%-points

      Source: International Monetary Fund, World Economic Outlook (Update), January 2026

      The IMF's calculations for Germany are in line with the preliminary figures of the country's Federal Statistical Office (Destatis), which - at its "GDP 2025" press conference on January 15, 2026 - also announced a slight increase in (price-adjusted) gross domestic product (GDP) of 0.2% for 2025 (prior year: -0.5%) for the first time since 2022 (+1.8%).

      According to the Federal Statistical Office, this slight growth is primarily attributable to increased consumer spending by private households and the government. Exports, on the other hand, declined again as the export industry faced "strong headwinds" from higher US tariffs, the appreciation of the euro, and stronger competition from China. Moreover, investment remained weak. Investment in both equipment and construction was lower than in the previous year.

      Multi-period overview: development of price-adjusted GDP in Germany

      	2021	2022	2023	2024	2025	YoY change
      GDP	3.9%	1.8%	-0.9%	-0.5%	0.2%	+0.7%-points

      Source: Destatis, January 2026

      Development of sector / core markets

      While many industries are struggling with weak demand, the digital economy is proving robust. Despite the current challenging economic environment, the digital sector association Bitkom expects the German market for IT and telecommunications (ICT) to grow by 3.9% (prior year: 4.8%) to € 234.8 billion in 2025.

      The increase in the overall ICT market resulted in particular from growth in sales of information technology. According to Bitkom's 2025 forecast, sales in this largest submarket rose by 5.3% (prior year: 6.4%) to € 160.6 billion. All segments of this sub-market made good progress: software (which also includes AI platforms, collaboration tools, and cloud services) grew by 9.4% (prior year: 13.9%), IT hardware by 3.8% (prior year: 3.2%), and IT services by 2.9% (prior year: 3.5%).

      The most important ICT markets for United Internet's business model are the German telecommunications market in its mostly subscription-financed Access division, as well as the global web hosting and cloud market, and the German online advertising market for its subscription- and ad-financed Applications division.

      Telecommunications market in Germany

      For the ICT submarket of telecommunications, the industry association Bitkom expects an increase of 1.2% (prior year: 1.4%) to € 74.2 billion in 2025. The individual segments of the German telecommunications market are developing quite differently: for example, sales of infrastructure grew by 6.6% (prior year: -6.3%) and telecommunications services by 1.4% (prior year: 1.7%), while sales of end-user devices fell by -2.6% (prior year: 5.8%).

      Key market figures: telecommunications market in Germany

      in € billion		2025	2024 Change 73.3 + 1.2%
      Telecommunication revenues		74.2

      Source: Bitkom, January 2026

      According to the study "German Entertainment and Media Outlook 2025 - 2029" (June 2025), the auditing and consultancy firm PricewaterhouseCoopers (PwC) expects service revenues - of particular importance for United Internet - to increase by 4.1% to € 34.2 billion in 2025. Service revenues in the mobile telecommunications segment are expected to grow by 5.8% to € 19.4 billion and service revenues in the broadband segment by 2.0% to € 14.8 billion.

      According to PwC, the number of mobile phone contracts will grow by 3.7% to 191.9 million in 2025. This growth results from an increase of 47.9% in 5G contracts to 75.5 million, while contracts for lower data rates declined significantly.

      PwC expects that the number of landline broadband connections rose by 1.2% to 39.3 million in 2025. At the same time, a decrease is forecast for the number of DSL connections (-7.3% to around 21.5 million) and the number of cable connections (-1.4% to around 8.3 million), while an increase of 35.5% to around 8.2 million is expected for fiber-optic connections.

      Global web hosting services market

      According to the market report "Web Hosting Services Market Size, Share & Industry Analysis" published by Fortune Business Insights, global sales of web hosting services are expected to grow by 18.1% to around USD 149.3 billion in the fiscal year 2025. The report specifically covers revenues in the areas of shared hosting, dedicated hosting, co-located hosting, virtual private server hosting, managed hosting, and self-managed hosting.

      Geographically, North America dominates the global market with a share of 41%, followed by Europe. The fastest growing market, however, is Asia/Pacific.

      Key market figures: global web hosting services

      in $ billion		2025	2024 Change 126.41 + 18.1%
      Sales of global Web Hosting Services		149.30

      Source: Fortune Business Insights; Web Hosting Services Market Size, Share & Industry Analysis, Update December 2025

      Global cloud services market

      There was further dynamic growth for the cloud services market in 2025. According to the market report "Cloud Computing Market Size," Precedence Research expects further global growth for cloud services of 21.2% to around USD 912.8 billion in 2025. The share of pure private cloud services for companies and public authorities, for example, is expected to remain unchanged at around 47%, while the share of public cloud services, which are provided to a large number of customers simultaneously and with hybrid use, is expected to be around 53%.

      Geographically, North America also dominates the global cloud services market with a share of 39%, followed by Europe with 25%. The Asia/Pacific region is also the fastest-growing market for cloud services, with a market share of 21%.

      Software-as-a-service (SaaS) accounts for the largest share of global service revenue, at around 55%.

      Key market figures: global cloud services

      in $ billion		2025	2024	Change
      Global sales of cloud services		912.77	753.11	+ 21.2%
      thereof Private Cloud		429.00	353.96	+ 21.2%
      thereof Public Cloud (incl. Hybrid)		483.77	399.15	+ 21.2%

      Source: Precedence Research; Cloud Computing Market Size, Share, and Growth Forecast, Update October 2025

      German online advertising market

      In its study "German Entertainment and Media Outlook 2025 - 2029" (June 2025), the auditing and consultancy company PricewaterhouseCoopers (PwC) forecasts an increase in total revenues (paid search, display, video, affiliate/classifieds) of the German online advertising market (mobile advertising and desktop advertising) of 10.6% to around € 21.5 billion in total for 2025 - following growth of 14.7% in 2024.

      Key market figures: total online advertising market in Germany - acc. to PWC

      in € billion		2025	2024 Change 19.40 + 10.6%
      Online advertising revenues		21.45

      Source: PricewaterhouseCoopers, German Entertainment and Media Outlook 2025 - 2029, June 2025

      The Online Marketing Group (OVK) of the German Association for the Digital Economy (BVDW) broadly shares PwC's assessment of the situation in the German online advertising market. The OVK only takes net revenues into account in its market figures and focuses exclusively on the most important submarket for United Internet, the display and video advertising market (mobile and desktop) - whereby the United Internet brands GMX and WEB.DE still generate most of their revenue in the display advertising market and only a small portion in the video advertising market.

      Based on its updated forecast in September 2025 - as part of its OVK Report 2025/02 - the OVK expects net revenues in the display and video advertising market to rise to around € 7.5 billion in 2025. This represents an increase of 8.5%, following growth of 12.8% in the previous year. The OVK attributes this slower year-on-year market growth in particular to geopolitical and macroeconomic uncertainties, which advertisers responded to in part with short-term and tactical booking behavior.

      The aforementioned growth of 8.5% is primarily attributable to the video advertising market, which is expected to grow by 16.6% to € 3.65 billion. By contrast, the display advertising market is only expected to grow by 1.6% to € 3.81 billion.

      Key market figures: display and video advertising market in Germany - acc. to OVK

      in € billion		2025	2024	Change
      Display and video advertising revenues		7.46	6.88	+ 8.5%
      thereof Video		3.65	3.13	+ 16.6%
      thereof Display		3.81	3.75	+ 1.6%

      Source: Online-Vermarkterkreis (OVK), OVK-Report 2025/02, September 2025

      Legal conditions / significant events

      Legal conditions

      The legal parameters for United Internet's business activities remained largely unchanged from the previous year in 2025 and had no significant influence on the development of the United Internet Group.

      Significant events

      Federal Network Agency decision on low- and mid-band spectrum

      On March 24, 2025, the German Federal Network Agency ("Bundesnetzagentur" - BNetzA) announced its decision regarding the allocation of low- and mid-band spectrum that will become available from January 2026. The decision is largely based on the consultation draft published in May 2024 and provides for an extension of existing spectrum usage rights for Deutsche Telekom, Vodafone, and Telefónica. The extension is subject to the obligation that Telefónica continues to make 2*10 MHz of its

      2.6 GHz spectrum available to 1&1 for shared use, and that Deutsche Telekom, Vodafone, and Telefónica make part of their available low-band spectrum available to 1&1 for shared use. To achieve this, the authority obliged the established network operators to conduct fair negotiations with 1&1. If 1&1 has not been granted the use of low-band spectrum by 1 January 2026, the Federal Network Agency reserves the right to enforce such use. Negotiations between 1&1 and the other mobile network operators on the cooperative, shared use of equivalent spectrum below 1 GHz have so far been unsuccessful. On February 17, 2026, the Federal Network Agency therefore initiated a written hearing regarding an order for the cooperative, shared use of low-band spectrum in the expansion areas of 1&1 Mobilfunk GmbH. The hearing of the mobile network operators will end on March 18, 2026.

      Exit of Warburg Pincus from IONOS

      On March 27, 2025, Warburg Pincus sold its entire stake in IONOS Group SE (shareholding as of December 31, 2024: 16.2%). Among other things, the exit resulted in total conditional purchase price payments of € 45.0 million from Warburg Pincus to United Internet and € 34.0 million from IONOS to Deutsche Telekom from the acquisition of STRATO AG in 2017. Moreover, in connection with the exit of Warburg Pincus, further purchase price adjustments from the repurchase in 2021 amounting to € 9.9 million became due, which were recognized in equity without affecting earnings.

      Purchase of 4.4 million 1&1 shares

      In early April 2025, United Internet AG purchased a total of 4.4 million shares of Group subsidiary 1&1 AG. The purchase price amounted to around € 60.8 million. As a result of the purchase, United Internet AG's stake in 1&1 AG increased from 78.32% to 80.81% of capital stock.

      Preliminary legal assessment of the Federal Cartel Office regarding the failure to provide antenna locations for 1&1

      On April 11, 2025, the German Federal Cartel Office published its preliminary legal assessment regarding Vodafone and Vantage Towers' failure to provide antenna locations for 1&1. In its assessment, the Federal Cartel Office deemed the delayed provision of contractually agreed locations to be a violation of antitrust law, hindering 1&1's entry into the market as a fourth network operator. In late 2021, Vantage Towers entered into a contractual agreement with 1&1 regarding the shared use of a four-digit

      number of antenna locations, to be implemented in several tranches by the end of 2025. The dates for the agreed provision targets were then contractually postponed by one year.

      However, the provision of the locations promised to 1&1 has been significantly delayed since the agreement was signed. Vodafone and Vantage Towers subsequently had the opportunity to respond to the Federal Cartel Office's assessment. The Federal Cartel Office has still not made a final decision.

      Public tender offer for 1&1 shares

      Following an announcement on May 16, 2025, United Internet published the offer document on June 5, 2025 for its voluntary public tender offer in the form of a partial offer (cash offer) to the shareholders of 1&1 AG to acquire up to 16,250,827 no-par value bearer shares of 1&1 (corresponding to approximately up to 9.19% of capital stock), each with a notional value of € 1.10, against payment of a consideration of € 18.50 per 1&1 share. The offer of € 18.50 per 1&1 share represented a premium of approximately 20% over the closing price in XETRA trading and approximately 29% over the volume-weighted 3-month average price (XETRA) as of May 15, 2025. United Internet thus offered all shareholders of 1&1 AG, including those with larger holdings, an attractive opportunity to obtain liquidity at a significant premium.

      The aim of United Internet's public tender offer was to further expand its existing 80.81% stake in 1&1 and consolidate its voting majority. A clear and stable shareholder structure is particularly important in view of the investments planned for the expansion of the 1&1 mobile network over the coming years. At the same time, an appropriate free float portion is to be maintained.

      The deadline for accepting the offer was July 3, 2025, 24:00 CET. A total of 7,585,033 1&1 shares were offered to United Internet as part of the voluntary public tender offer (corresponding to approximately 4.29% of capital stock). The resulting acquisition price amounted to € 140.3 million and was paid in July 2025. As a result, United Internet's shareholding increased from 80.81% in July 2025 to 85.10% of 1&1 AG's capital stock.

      Purchase of further 2.4 million 1&1 shares

      In late August 2025, United Internet purchased a further 2.4 million shares of 1&1 AG. The purchase price amounted to around € 44.9 million. As a result of the purchase, United Internet AG's stake in 1&1 AG increased from 85.10% to 86.46% of capital stock.

      United Internet sells 1&1 Versatel to 1&1 AG

      In November 2025, United Internet and 1&1 AG (United Internet share: 86.46%) agreed on an intra-group sale of United Internet Management Holding SE (United Internet share: 100%), including its wholly owned subsidiary 1&1 Versatel GmbH (together: 1&1 Versatel), to 1&1 AG.

      The economically agreed purchase price amounts to approximately € 1.3 billion. In addition, 1&1 AG will pay compensation of € 246 million in connection with the transaction. The background to this is that the transaction led to an impairment of the investment in 1&1 Versatel at United Internet Management Holding SE to the lower fair value. The resulting loss was to be borne by United Internet AG due to the existing profit and loss transfer agreement (loss assumption pursuant to section 302 AktG) and was offset in January 2026 by a payment from United Internet AG to United Internet Management Holding SE. The compensation amount is repaid outside of the purchase price fulfillment; technically, it is attributed to the acquisition costs. The total acquisition costs for 1&1 thus amount to € 1,546 million.

      1&1 AG acquired 1&1 Versatel with all its assets, in particular network infrastructure and debts, including

      € 950 million in loan liabilities to United Internet. This loan remaining with 1&1 Versatel was secured by a guarantee of 1&1 AG in the course of the sale.

      The purchase price claim was settled by offsetting it against counterclaims from a cash management credit balance of € 650 million, as well as by granting a shareholder loan from United Internet AG to 1&1 AG also amounting to € 650 million. In addition, the compensation amount for the loss assumption was repaid. Taken together, these mutual payments offset each other, meaning that United Internet did not receive any cash from the transaction.

      Depending on the future business performance of 1&1 Versatel in the years 2027, 2028, and 2029, the purchase price may increase or decrease by up to € 300 million. Any adjustment amount would be due in 2030.

      As a result of the intra-group restructuring and the sale of 1&1 Versatel to 1&1, United Internet has pooled its activities and expertise in the telecommunications business under the umbrella of 1&1 AG.

      The sale of the shares had economic effect as of the end of November 30, 2025.

      1&1 fulfills requirements of German Federal Network Agency

      Just two years after launching its mobile services on Germany's fourth mobile network, 1&1 AG achieved coverage of 27 percent of German households in December 2025. As a result, 1&1 met the first coverage target of 25 percent set for the company by the German Federal Network Agency during the 5G spectrum auction on schedule (deadline: December 31, 2025).

      In November 2025, 1&1 had already fulfilled the Federal Network Agency's requirement for "competitive independence" ahead of schedule by completing the migration to the 1&1 mobile network of all existing customers previously supplied on the basis of wholesale contracts.

      There were no other significant events in fiscal 2025 which had a material effect on the development of business.

   2. Business development

      Use and definition of relevant financial performance measures

      In order to ensure the clear and transparent presentation of United Internet's business trend, the Group's Annual Financial Statements and Interim Financial Statements include key financial performance measures - in addition to the disclosures required by International Financial Reporting Standards (IFRS) - such as EBITDA, the EBITDA margin, EBIT, the EBIT margin, and free cash flow.

      United Internet defines these measures as follows:

      ⯀ EBIT: Earnings before interest and taxes represents the operating result disclosed in the statement of comprehensive income.

      ⯀ EBIT margin: Presents the ratio of EBIT to sales.

      ⯀ EBITDA: Earnings before interest, taxes, depreciation, and amortization are calculated as EBIT/operating result plus the depreciation and amortization (disclosed in the Consolidated Financial Statements) of intangible assets and property, plant, and equipment, as well as assets capitalized in the course of company acquisitions less any depreciation included therein from discontinued operations..

      ⯀ EBITDA margin: Presents the ratio of EBITDA to sales.

      ⯀ Cash flow before changes in balance sheet items (subtotal): Cash flow before changes in balance sheet items is derived from net income, adjusted for non-cash effects. These include depreciation and amortization, result from associated companies, deferred taxes, and interest and financing expenses. This subtotal represents the cash inflow from operating activities before changes in working capital and other balance sheet items are taken into account.

      ⯀ Free cash flow: Calculated as cash flow from operating activities (disclosed in the consolidated financial statement), less capital expenditure for intangible assets and property, plant, and equipment, plus payments from the disposal of intangible assets and property, plant, and equipment.

      ⯀ Free cash flow after leases: Free cash flow after leases is calculated as free cash flow less the repayment portion of lease liabilities, which have been included in cash flow from financing activities since the fiscal year 2019 (IFRS 16).

      ⯀ Capex: Capex represents total recognized expenses for investments in intangible assets and property, plant, and equipment (capital expenditures).

      ⯀ Cash capex: Cash capex is the sum of cash outflows for investments in intangible assets and property, plant and equipment (capital expenditures).

      Insofar as necessary for a clear and transparent presentation, these indicators are adjusted for special items and disclosed as "key operating figures" (e.g., operating EBITDA, operating EBIT, and operating EPS). A reconciliation of EBITDA, EBIT, EBT, net income, and EPS (according to the consolidated statement of comprehensive income) with figures adjusted for special items can be found in chapter

   3. "Position of the Group".

Such special items usually refer solely to those effects capable of restricting the validity of the key financial performance measures with regard to the Group's financial and earnings performance - due to their nature, frequency, and/or magnitude. All special items are presented and explained for the purpose of reconciliation from the unadjusted key financial figures to the key operating figures in the relevant section of the financial statements.

By contrast, expenses for the rollout of the 1&1 mobile network or start-up costs for new business fields of 1&1 Versatel are not adjusted but disclosed - should there be any - in the respective sections.

Currency-adjusted sales and earnings figures are calculated by converting sales and earnings figures with the average exchange rates of the comparative period, instead of the current period.

The most important key financial figures for managing the Group are sales and operating EBITDA according to IFRS.

Special items in fiscal year 2025

Following a thorough review, the Management Board and Supervisory Board decided in March 2024 to discontinue the "Energy" and "De-Mail" business fields in the Consumer Applications segment.

Since the first quarter of 2024, United Internet has therefore reported the sales and earnings contributions of these two business fields separately in its management reporting, both in the Consumer Applications segment and at Group level, and adjusts its current key operating figures and the comparative figures for previous periods by these amounts. Customer contract figures are correspondingly also presented adjusted. By contrast, the key financial figures for 2021-2022 remained unchanged in the multi-period overviews.

As the "De-Mail" business field was already discontinued as of year-end 2024, there was only a sales and earnings contribution in the fiscal year 2025 from the "Energy" business field sold in mid-October 2025, which is reported separately and adjusted. In the fiscal year 2025, this amounted to sales of € 16.1 million and EBITDA and EBIT of € +7.8 million (net incl. sale proceeds). By comparison: in the fiscal year 2024, the adjusted sales and earnings contributions from "Energy" and "De-Mail" amounted to sales of

€ 26.2 million, EBITDA of € -0.7 million, and EBIT of € -0.9 million.

In a court ruling of July 2025, the German Federal Fiscal Court ruled in favor of United Internet in a legal dispute between United Internet and the relevant tax authority regarding corporate income tax for 2008.

The decision resulted in a tax refund and an associated interest refund in fiscal year 2025, most of which have already been reimbursed. The tax refund amounted to € 37.4 million, of which € 8.5 million had already been recognized in previous years as receivables from the tax authorities, resulting in net tax income of € 28.9 million. The interest refund (including costs) amounted to € 34.9 million, of which

€ 4.7 million had already been recognized in previous years as receivables from the tax authorities, resulting in net interest income of € 30.2 million. In light of these non-recurring special tax and interest effects, United Internet has adjusted its current operating figures in the Group Management Report to reflect these amounts.

In September 2025, the United Internet subsidiary IONOS Group SE decided to sell Sedo GmbH, including its subsidiaries ("Sedo"), and thus the IONOS business field "AdTech" (formerly: "Aftermarket"). By selling the company, the IONOS Group's management team aims to focus fully on its core business fields "Web Presence & Productivity" and "Cloud Solutions".

Sedo has recently shifted its focus away from the secondary market for the use and trading of domains and toward becoming a platform for traffic monetization, thereby becoming part of the digital advertising market. As a result, Sedo's activities have moved further away from the core IONOS business fields. The planned ownership change will enable Sedo to leverage the numerous opportunities offered by the AdTech business more fully and to continue its positive development.

Due to its size and importance (unlike the undersized and insignificant "Energy" business field), the decision to sell Sedo means that it will be reported as a discontinued operation in accordance with IFRS

5. The current figures for fiscal 2025 and the prior-year figures in the Income Statement for IONOS Group SE and United Internet AG have been adjusted accordingly. The revenues and expenses of the discontinued operation are no longer included in the respective Income Statement items. The discontinued operation is presented separately with its net income for the period after taxes. The effects on the Cash Flow Statement as of December 31, 2025 and December 31, 2024, are reported separately in the Notes to the Consolidated Financial Statements (Note 16). The effects on the Balance Sheet as of December 31, 2025 are presented separately within the Balance Sheet. By contrast, the Balance Sheet as of December 31, 2024 is to be presented unchanged.

For further information, please refer to note 16 of the Notes to the Consolidated Financial Statements

Actual and forecast development 2025

In an ad-hoc announcement on March 25, 2025, United Internet published its guidance for the fiscal year 2025 and updated, or adjusted, it during the year as follows:

Forecast 2025

(March 2025)

Specification (May 2025)

Adjustment(2) (November 2025)

Revenues approx. € 6.4 billion approx. € 6.45 billion approx. € 6.05 billion

EBITDA approx. € 1.35 billion approx. € 1.35 billion approx. € 1.30 billion

1. Without consideration of the "Energy" business field

2. Adjustment for the revenue and earnings contributions from Sedo previously included in the forecast as a result of Sedo being accounted for as a discontinued operation in accordance with IFRS 5

Without consideration of the "Energy" business field in 2025, as well as "Energy" and "De-Mail" in 2024, the key performance indicators (KPIs) sales and operating EBITDA from continued operations developed as follows:

⯀ In the fiscal year 2025, consolidated sales rose by 1.9%, from € 5.991 billion (comparable prior-year figure) to € 6.104 billion and thus surpassed the sales forecast of November 2025 (approx. € 6.05 billion).

⯀ Operating EBITDA for the Group improved by 2.4% in the fiscal year 2025, from € 1.252 billion (comparable prior-year figure) to € 1.282 billion and was thus within the target corridor of the EBITDA forecast issued in November 2025 (approx. € 1.30 billion).

1. Without consideration of the "Energy" business field

2. Adjustment for the revenue and earnings contributions from Sedo previously included in the forecast as a result of Sedo being accounted for as a discontinued operation in accordance with IFRS 5

The net loss of United Internet AG (parent company) for the fiscal year 2025 amounted to € -260.8 million and was thus well below the 2025 forecast (subject to special items) of a balanced result for the year. This was primarily due to the intra-group sale of United Internet Management Holding and its subsidiary 1&1 Versatel to 1&1 (with economic effect as of the end of November 30, 2025), which led to a non-scheduled impairment loss on the investment in 1&1 Versatel amounting to € 246.1 million at the level of United Internet Management Holding and a corresponding loss assumption obligation of United Internet in connection with the profit and loss transfer agreement. In addition, there was a non-scheduled writedown on the investment in Kublai amounting to € 37.2 million.

Adjusted for these non-scheduled factors, the annual result of the parent company for 2025 was within the target corridor of the forecast for the parent company.

Development of divisions and segments

The Group's operating activities are divided into the business divisions Access and Applications, which in turn are divided into the segments Consumer Access and Business Access, as well as Consumer Applications and Business Applications.

Details on the business models of the individual segments are presented in chapter 1.1 "Business model".

In addition to the operation and expansion of the 1&1 mobile network and customer migration to its own network, the Consumer Access segment focused on adding further valuable mobile internet contracts in the fiscal year 2025, while a decline in broadband connections was expected.

There was a corresponding fall in the total number of fee-based contracts in the Consumer Access segment of 70,000 to 16.32 million contracts in the fiscal year 2025. As expected, the growth in mobile internet contracts of 40,000 was offset by a decrease in broadband contracts of 110,000.

Sales of the Consumer Access segment rose by 0.8% in the fiscal year 2025, from € 4,064.3 million in the previous year to € 4,095.9 million. High-margin service revenues - which represent the core business of the segment and were impacted by the decline in broadband connections - rose slightly by 0.1% from € 3,303.1 million in the previous year to € 3,306.6 million in the fiscal year 2025. At € 789.3 million, low-margin hardware sales were 3.7% up on the previous year (€ 761.2 million). The hardware business is subject to seasonal fluctuations and also depends on the appeal of new devices and the model cycles of manufacturers.

Segment EBITDA fell to € 521.5 million (prior year: € 590.8 million). Expenses for the rollout of the 1&1 mobile network included in this figure were unchanged from the previous year at € -265.3 million. The decline in EBITDA is mainly due to higher advance service costs resulting from slower growth of Vodafone's network than anticipated by 1&1 (and thus higher costs for 1&1 due to the capacity model underlying the national roaming agreement), as well as the switch from Telefónica to Vodafone as the national roaming provider. In the case of the national roaming agreement with Vodafone, the capacities

used by 1&1 are recognized fully in EBITDA, whereas in the national roaming agreement with Telefónica, they were partially capitalized and depreciated in scheduled amounts.

Due to these expenses and increased depreciation for investments in the establishment of the 1&1 mobile network, there was a year-on-year decrease in segment EBIT to € 219.5 million (prior year:

€ 309.4 million).

The EBITDA margin decreased from 14.5% to 12.7% and the EBIT margin from 7.6% auf 5.4%.

The number of employees in this segment decreased by 6.3% to 3,063 (prior year: 3,268). For further information, please refer to the "Personnel report".

Sales

thereof service sales

thereof other sales(1)

789.3

761.2

3,306.6

3,303.1

4,095.9

4,064.3

+ 0.8 %

+ 0.1 %

+ 3.7 %

2025

2024

EBITDA

EBIT

219.5

521.5

590.8(2)

(2)

- 11.7 %

- 29.1 %

309.4

1. Mainly hardware sales

2. Including out-of-period expenses for network expansion from 2022 and 2023 (EBITDA and EBIT effect: € -14.3 million)

1. Unaudited; see note "Unaudited sections" at the beginning of the management report

2. Mainly hardware sales

1. Mainly hardware sales

2. Excluding an out-of-period positive effect on earnings attributable to the second half of 2020 (EBITDA and EBIT effect: € +39.4 million)

3. Including out-of-period expenses for network expansion from 2022 and 2023 (EBITDA and EBIT effect: € -14.3 million)

Besides its operating business, the key topics in the Business Access segment in the fiscal year 2025 were the expansion of the fiber-optic network and the connection of additional locations.

Sales of the Business Access segment rose by 2.1% in the fiscal year 2025, from € 574.9 million in the previous year to € 586.7 million.

Segment EBITDA improved by 1.3% from € 165.1 million to € 167.2 million. The EBITDA margin fell slightly from 28.7% to 28.5%.

In the new "5G" business field, 1&1 Versatel is setting up data centers and fiber-optic connections for the antenna locations of 1&1's mobile network and providing them to 1&1 on a rental basis as part of an intercompany agreement. In the other new business field "Expansion of business parks", 1&1 Versatel uses newly constructed regional expansion clusters to provide fiber-optic connections for companies in business parks. In the fiscal year 2025, total start-up costs for the new business fields amounted to € -

15.4 million (prior year: € -21.6 million) for EBITDA and € -131.2 million (prior year:€ -117.4 million) for EBIT.

As a result of increased depreciation for the associated investments in network infrastructure, segment EBIT decreased from € -78.6 million in the previous year to € -100.5 million.

The number of employees in this segment decreased by 1.2% in 2025 to 1,615 (prior year: 1,635).

2025

2024

Sales

EBITDA

EBIT

-100.5

-78.6

167.2

165.1

586.7

574.9

+ 2.1 %

+ 1.3 %

(1) Unaudited; see note "Unaudited sections" at the beginning of the management report

As already mentioned in chapter 2.2 "Business development" under "Special items in fiscal year 2025", the Management Board and Supervisory Board decided in March 2024 to discontinue the "Energy" and "De-Mail" business fields in the Consumer Applications segment. The key figures for 2023, 2024, and 2025 presented below have been adjusted accordingly. The key financial figures for 2021 and 2022 in the multi-period overviews, however, remain unchanged.

After the "De-Mail" business field was already discontinued as of the balance sheet date December 31, 2024, the "Energy" business field was sold in mid-October 2025.

The key topics of the Consumer Applications segment in 2025 were the further development of data-driven business models and the expansion of customer relationships.

The number of pay accounts (fee-based contracts) in the Consumer Applications segment rose by 310,000 to 3.35 million in the fiscal year 2025. At 38.68 million, however, ad-financed free accounts were 250,000 down on December 31, 2024 (38.93 million) due to the high conversion to fee-based contracts. The total number of accounts rose by 60,000 to 42.03 million.

(1) Contract figures as of September 30, 2025 and as of December 31, 2024 excluding 0.02 million Energy contracts (value-added subscription)

Despite the overall weakness of the German display advertising market, advertising revenues increased significantly. Together with persistently strong growth in pay contracts, this led to a significant increase in sales and earnings in the fiscal year 2025.

Adjusted for sales of € 26.2 million from "Energy" and "De-Mail" in the prior-year period and

€ 16.1 million from "Energy" in the fiscal year 2025, sales of the Consumer Applications segment rose by 8.1%, from € 298.3 million to € 322.6 million.

Adjusted for earnings contributions from "Energy" and "De-Mail" of € -0.7 million (EBITDA) and € -

0.9 million (EBIT) in the prior-year period and € +7.8 million (EBITDA and EBIT, each net incl. proceeds from the sale of the business field in mid-October 2025) from "Energy" in the fiscal year 2025, operating segment EBITDA of € 123.1 million was 8.7% up on the previous year (€ 113.2 million). Due to slightly higher depreciation and amortization, the year-on-year increase in operating segment EBIT was slightly weaker at 8.0% to € 111.9 million (prior year: € 103.6 million).

Correspondingly, the operating EBITDA margin rose slightly from 37.9% to 38.2%, while the operating EBIT margin was unchanged at 34.7%.

The number of employees in this segment decreased by 0.5% in 2025 to 1,089 (prior year: 1,095).

2024

Sales

EBITDA

EBIT

32

298.3(2)

123.1(1)

113.2(2)

111.9(1)

103.6(2)

2.6(1)

+ 8.1 %

+ 8.7 %

+ 8.0 %

1. Excluding the sales and earnings contribution from Energy (sales contribution: € 16.1 million, EBITDA contribution: € +7.8 million net including sales proceeds, EBIT contribution: € +7.8 million net, including sales proceeds)

2. Excluding the sales and earnings contributions from Energy and De-Mail (sales contribution: € 26.2 million, EBITDA contribution: € -0.7 million, EBIT contribution: € -0.9 million)

1. Unaudited; see note "Unaudited sections" at the beginning of the management report

2. Excluding the sales and earnings contribution from Energy

   (sales contribution: € 5.9 million, EBITDA contribution: € +0.2 million, EBIT contribution: € +0.2 million in Q1 2025; sales contribution: € 5.3 million, EBITDA contribution: € +1.0 million, EBIT contribution: € +1.0 million in Q2 2025; sales contribution: € 4.9 million, EBITDA contribution: € +0.7 million, EBIT contribution: € +0.7 million in Q3 2025;

   sales contribution: € 0.0 million, EBITDA contribution: € +5.9 million net including sales proceeds, EBIT contribution: € +5.9 million net including sales proceeds in Q4 2025)

3. Excluding the sales and earnings contributions from Energy and De-Mail

(sales contribution: € 6.3 million, EBITDA contribution: € -0.5 million, EBIT contribution: € -0.6 million in Q4 2024)

1. Excluding a non-cash valuation effect from derivatives (EBITDA and EBIT effect: € +4.9 million) as well as the intra-group sale of the AWIN AG stake (EBITDA and EBIT effect: € +50.1 million)

2. Excluding a non-cash valuation effect from derivatives (EBITDA and EBIT effect: € -0.5 million)

3. Excluding the sales and earnings contributions from Energy and De-Mail (sales contribution: € 27.3 million, EBITDA contribution: € -2.7 million, EBIT contribution: € -2.8 million)

4. Excluding the sales and earnings contributions from Energy and De-Mail (sales contribution: € 26.2 million, EBITDA contribution: € -0.7 million, EBIT contribution: € -0.9 million)

5. Excluding the sales and earnings contribution from Energy (sales contribution: € 16.1 million, EBITDA contribution: € +7.8 million net including sales proceeds, EBIT contribution: € +7.8 million net, including sales proceeds)

In 2025, the Business Applications segment focused on upselling and cross-selling measures for existing customers and on acquiring new customer relationships.

In total, the number of fee-based Business Applications contracts rose by 460,000 to 10.05 million contracts in the fiscal year 2025. This growth resulted from 170,000 contracts in Germany and 290,000 contracts abroad.

Following the decision to sell Sedo (IONOS business field "AdTech"), Sedo is now accounted for as a discontinued operation in accordance with IFRS 5 and no longer disclosed in the sales and earnings figures of the "Business Applications" segment, but separately under discontinued operations with its net income for the period after taxes. Sales and earnings figures for the previous year have been adjusted accordingly. For further information, please refer to chapter 2.2 "Business development" under "Special items in fiscal year 2025".

Sales of the Business Applications segment rose by 5.5% in the fiscal year 2025, from € 1,248.1 million in the previous year to € 1,316.9 million.

There was even stronger growth in the key earnings figures. Segment EBITDA rose by 19.8% from

€ 387.4 million to € 464.1 million and segment EBIT by 29.0% from € 275.7 million to € 355.7 million.

The EBITDA margin and EBIT margin increased correspondingly strongly from 31.0% to 35.2% and from 22.1% to 27.0%, respectively.

The number of employees in this segment increased slightly by 1.1% in 2025 to 4,115 (prior year: 4,072).

Sales

EBITDA

EBIT

.7(1)

1,31

1,248.1(1)

4.1(1)

6.9(1)

+ 5.5 %

+ 19.8 %

+ 29.0 %

2025

46

387.4(1)

2024

355

275.7(1)

1. After accounting for Sedo as a discontinued operation in accordance with IFRS 5 as of September 30, 2025; previous year 2024 adjusted

   Quarterly development; change over prior-year quarter(1)

   in € million	Q1 2025(2)	Q2 2025(2)	Q3 2025(2)	Q4 2025(2)	Q4 2024(2)	Change
   Sales	329.6	326.4	324.2	336.7	325.0	+ 3.6%
   EBITDA	106.4	120.2	126.8	110.7	96.5	+ 14.7%
   EBIT	79.0	93.2	100.1	83.4	66.5	+ 25.4%

   1. Unaudited; see note "Unaudited sections" at the beginning of the management report

   2. After accounting for Sedo as a discontinued operation in accordance with IFRS 5 as of September 30, 2025; previous quarters adjusted.

1. Excluding IPO costs (EBITDA and EBIT effect: € -3.0 million)

2. Excluding IPO costs (EBITDA and EBIT effect: € -8.8 million)

3. Excluding IPO costs (EBITDA and EBIT effect: € +11.7 million net (IPO costs and offsetting assumption of costs by IONOS shareholders))

4. After accounting for Sedo as a discontinued operation in accordance with IFRS 5 as of September 30, 2025; previous year 2024 adjusted

Group investments

In addition to its (fully consolidated) core operating companies, United Internet held the following other minority shareholdings as of December 31, 2025, which are included in its result from associated companies.

In July 2013, United Internet acquired a stake in Open-Xchange AG (main activity: e-mail and collaboration solutions). United Internet has already been working successfully with the company for many years in its Applications business. As of December 31, 2025, United Internet's share of voting rights amounted to 25.39%. United Internet expects Open-Xchange to post increased revenues and positive EBITDA for the fiscal year 2025.

In April 2014, United Internet acquired a stake in uberall GmbH (main activity: online listings). In addition, uberall and IONOS agreed a long-term cooperation contract for the use of uberall solutions. As of December 31, 2025, the share of voting rights held by United Internet amounted to 25.10%. For 2025, United Internet anticipates increased sales of uberall with a positive EBITDA result.

In April 2017, United Internet acquired a stake in rankingCoach GmbH (main activity: online marketing solutions). In addition to the equity stake, rankingCoach and IONOS signed a long-term cooperation agreement for IONOS to use the online marketing solutions of rankingCoach as part of its hosting and cloud products marketed in Europe and North America. As of December 31, 2025, the share of voting rights amounted to 31.52%. United Internet expects rankingCoach to achieve further sales growth in 2025 and a positive EBITDA result.

Following the contribution of affilinet GmbH to AWIN in October 2017, United Internet also holds a stake in AWIN AG (main activity: affiliate marketing). Several United Internet subsidiaries are currently working together with AWIN and using the company's affiliate network as part of their marketing mix. As of December 31, 2025, United Internet's share of voting rights amounted to 20.00%. United Internet expects stable sales for AWIN in its fiscal year 2025 and a strongly positive EBITDA result.

In June 2024, United Internet AG announced that it would make no further investments in the holding company Kublai GmbH. Kublai currently holds around 95% of shares in Tele Columbus AG.

This decision meant that United Internet waived the right to increase its stake in Kublai to 40% again after it was diluted to around 5% in the course of a capital increase in the first quarter of 2024. Due to the resulting loss of significant influence, a non-cash impairment loss on the investment in Kublai of

€ 170.5 million was recognized in the Consolidated Financial Statements as at December 31, 2024 and disclosed in the "Result from the loss of significant influence".

As already reported in the Consolidated Financial Statements 2024, Kublai conducted a capital increase to provide Tele Columbus with equity, in which United Internet did not participate. A further shareholder of Kublai is Hilbert Management GmbH, an indirect subsidiary of Morgan Stanley Infrastructure Inc (MSI), an infrastructure fund managed by the investment bank Morgan Stanley, which subscribed to the full amount of the capital increase totaling € 300 million. This resulted in a reduction of United Internet's stake in Kublai to around 5% (previously 40%). Until June 17, 2024, United Internet

had the option to increase its stake in Kublai back to 40% by acquiring shares from MSI in return for a payment of € 120 million.

United Internet regards the valuation of Tele Columbus AG on which the capital increase was based as inappropriately low. However, its majority of votes at the shareholders' meeting enabled MSI to conduct the capital increase on the basis of a valuation determined by MSI. United Internet has initiated the contractually stipulated anti-dilution proceedings and has arranged for the German Arbitration Institute (DIS) to review MSI's valuation. If DIS agrees with United Internet's assessment, United Internet might be awarded compensation of approximately € 300 million. If the court takes a different view, the awarded claim or compensation amount could be correspondingly lower.

A final arbitration ruling is still pending.

The reason for the decision of the Management Board and Supervisory Board of United Internet AG not to make any further investments in Kublai was a difference of opinion between MSI and United Internet regarding the future funding of Kublai.

Due to the reduction of the shareholding from 40% to around 5% in fiscal year 2024, Kublai was reclassified from "Shares in associated companies" to "Investments". Accordingly, the company's prorated result is no longer recognized in net income (under "Result from the loss of significant influence"). The fair value of the investment in Kublai decreased by € 48.3 million in fiscal year 2025. This change was recognized in the balance sheet through other comprehensive income in equity.

Share and dividend

In the fiscal year 2025, the United Internet share price increased significantly by +76.6% to € 27.68 as of December 31, 2025 (December 31, 2024: € 15.67). The share therefore once again outperformed the strong growth of the DAX (+23.0%) and MDAX (+19.7%) indices.

180%

170%

United Internet DAX

MDAX

160%

150%

140%

130%

120%

110%

100%

90%

Jan. Feb. Mar. Apr. May Jun. Jul.

Aug.

Sep.

Oct. Nov. Dec.

There was a corresponding increase in the market capitalization of United Internet AG from around

€ 3.0 billion in the previous year to around € 5.3 billion as of December 31, 2025.

In the fiscal year 2025, average daily trading via the XETRA electronic computer trading system amounted to around 250,000 shares (prior year: around 200,000) with an average value of around

€ 5.4 million (prior year: around € 3.9 million).

1. EPS from continued operations

2. EPS from continued operations and without special items

3. After accounting for Sedo as a discontinued operation in accordance with IFRS 5 as of September 30, 2025; previous year adjusted

Share type Registered common stock

Notional share of capital stock € 1.00

German Securities Identification Number (WKN) 508903

International Securities Identification Number (ISIN) DE0005089031 Ticker symbol Xetra UTDI

Reuters ticker symbol UTDI.DE

Bloomberg ticker symbol UTDI.GR

Segment Prime Standard

Index MDAX, TecDAX

Telecommunication and Technology

Sector Services

Shareholder Shareholding

Ralph Dommermuth

Presentation of the total positons shown above based on the most recent notification of voting rights in accordance with Sections 33 ff. of the German Securities Trading Act. Accordingly, only voting rights notifications that have reached at least the first notification threshold of 3% are taken into account. In addition, any directors' dealings announcements available to the Company have been taken into account accordingly.

The treasury shares held by United Internet do not carry voting or dividend rights. Due to the non-voting nature of treasury shares, the proportion of shares with voting rights held by companies controlled by Mr. Dommermuth in relation to the total number of voting rights of United Internet AG amounts to 54.37%, the proportion of shares with voting rights held by Wellington to 5.50%, the proportion of shares with voting rights held by Bank of America to 5.48%, the proportion of shares with voting rights held by Helikon to 5.46%, and the proportion of shares with voting rights in free float to 29.19%.

United Internet's dividend policy aims to pay a dividend to shareholders of approx. 20-40% of adjusted consolidated net income after minority interests (adjusted consolidated net income from continued operations attributable to the "shareholders of United Internet AG" - according to the consolidated statement of comprehensive income), provided that funds are not needed for further Company development.

At the Annual Shareholders' Meeting of United Internet AG held on May 15, 2025, the dividend proposal of the Management Board and Supervisory Board was approved with a majority of 99.97% of votes cast. The proposal for the fiscal year 2024 was a regular dividend of € 0.40 per share plus a one-off catch-up dividend of € 1.50 per share as compensation for the reduced dividend payments of the fiscal years 2018 to 2023. On the basis of around 172.8 million shares with dividend entitlement, a total of € 328.4 million was distributed on May 20, 2025.