PowerPoint-Präsentation · 1 H1 2020 Montabaur, August 13, 2020 UNITED INTERNET AG 6-Month 2020....

11 H1 2020 Montabaur, August 13, 2020

UNITED INTERNET AG

6-Month 2020

Montabaur,August 13, 2020


AGENDA

Ralph Dommermuth Company development

Outlook 2020

Frank Krause Results H1 2020


COMPANY DEVELOPMENT


2 BUSINESS AREAS: ACCESS & APPLICATIONS

ACCESS APPLICATIONS

Networks

UserEquipment

Content

Standardsoftware

Motivated Team 9,450 employees, of which approx. 3,000 in product

management, development and data centers

Sales strength More than 5 million contracts p. a. 50,000 registrations for free services every day

Operational excellence 64 million accounts in 12 countries

10 data centers 90,000 servers in Europe and USA

Powerful network infrastructure 49,500 km of fiber network Up to 30 % mobile network capacity of Telefónica


BRANDS & INVESTMENTS

25.01 % 25.39 % 30.70 % 27.42 %

Access

App l i ca t ions

29.90 %

Consumer

Bus iness

Consumer

Bus iness

Par t ne rs

L i s t edInves tment s

(as of June 30, 2020)


“ACCESS” IN H1 2020

CONSUMER APPLICATIONS

BUSINESS APPLICATIONS

CONSUMER ACCESS

BUSINESS ACCESS


CONSUMER ACCESS: FIXED-LINE BUSINESS

Largest alternative German DSL provider

Connect fixed-line test: #1 in 2020, 2017 and 2015, #2 in 2018 and 2016

FTTCDTAG

Last mile:

VDSL vectoring (FTTC) primarily

via 1&1 Versatel and Layer 2

infrastructure of Deutsche Telekom,

besides Layer 3

Fiber-optic connections (FTTH) via

city carriers

ADSL via further network operatorsCity

CarrierFTTH


CONSUMER ACCESS: MOBILE BUSINESS

Germany‘s leading MVNO

Broad market coverage

Main brand

Co-brands

Discount brands

TEFD remedy partner with long-

term guaranteed access to up to

30% of network capacity and all

future technologies, incl. 5G

Additional wholesale contract

with Vodafone


CONSUMER ACCESS: CUSTOMER CONTRACTS

14.57 million customer contracts (+ 240,000)

10.24 million mobile internet contracts (+ 250,000)

4.33 million broadband connections

ADSL / VDSL / FTTH (- 10,000)4.34 4.33

9.99 10.24

0

5

10

15

31.12.2019 30.06.2020

14.33 14.57+0.24

(in millions)

Mobile InternetBroadband connections


CONSUMER ACCESS: REVENUES

+ 4.1 % revenues to € 1.867 billion

+ 3.1 % service revenues to € 1,496.9 million,

despite - € 4.6 million, due to the coronavirus

pandemic (in particular missing international

roaming)

+ 8.6 % low-margin hardware revenues

to € 370.3 million

+ 4.4 % comparable service revenues – excluding

the aforementioned pandemic effect

(acc. to IFRS in € millions)

0

500

1,500

1,000

2,000

H1 2020

1,496.9

370.3

H1 2019

1,867.21,792.9

341.0

1,451.9

+74.3(+4.1%)

Service revenuesHardware revenues


- 2.7 % EBITDA to € 331.3 million

€ - 13.7 million from regulation of subscriber line

charges (“TAL”) and “SMS EU” (prior year:

€ - 1.0 million)

€ - 5.6 million from initial costs for the 5G network

(prior year: € - 1.9 million)

€ - 0.4 million one-offs from Drillisch integration

(prior year: € - 2.3 million)

€ - 10.2 million from temporary change in

behaviour caused by the coronavirus pandemic*

17.7 % EBITDA margin (prior year: 19.0 %)

+ 4.5 % comparable EBITDA – excluding the

aforementioned effects

CONSUMER ACCESS: EBITDA

H1 2020H1 2019

-9.1(-2.7%)


* Especially in the area of telephony (voice), inter alia by home office use

340.4 331.3

0

50

100

150

200

250

300

350


BUSINESS ACCESS

One of the largest German fiber-optic networks

Project business and plug-and-play solutions for medium-sized companies

Business

Authorities

Fiber-optic network with

49,495 km

(prior year: 47,693 km)

In 250 Geman cities,

including 19 of the 25 largest

cities

17,838 directly connected

locations (prior year: 16,315)

FTTB

FTTB


BUSINESS ACCESS: REVENUES

+ 3.1 % revenues to € 241.5 million

€ - 8.2 million from services which expired in 2019

and which were previously provided to broadband

customers taken over by 1&1 Drillisch in 2017

€ + 3.1 million from stronger telephony business

due to the coronavirus pandemic

+ 6.8 % in the core business (B2B and wholesale)

and + 5.4% without the pandemic effect


0

50

100

150

200

250

H1 2019 H1 2020

241.5234.3 +7.2(+3.1%)


BUSINESS ACCESS: EBITDA

0

10

20

30

40

50

60

70

80 74,9

H1 2020H1 2019

70,2 +4.7(+6.7%)


+ 6.7 % EBITDA to € 74.9 million

€ - 3.3 million from expiry of services in 2019 for

broadband customers taken over by 1&1 Drillisch

€ + 0.9 million from stronger telephony business

due to the coronavirus pandemic


+ 12.0 % in core business (B2B and wholesale) and

+ 9.9 % without the pandemic effect


„APPLICATIONS“ IN H1 2020

CONSUMER APPLICATIONS

BUSINESS APPLICATIONS

CONSUMER ACCESS

BUSINESS ACCESS


CONSUMER APPLICATIONS: FROM E-MAIL SERVICE TO COMMAND CENTER FOR COMMUNICATION, INFORMATION AND IDENTITY MANAGEMENT

Communication and organizationE-mail, calendar, contacts, SMS, fax

Cloud storagefor photos, videos, music und documents

Online offficetexts, spreadsheets,presentations

De-Maillegally secure communicationand identity management


One of the leading providers in Consumer Applications

33.1 million active user accounts in Germany – more than 50% market share in private emails

CONSUMER APPLICATIONS: ASSETS

E-Mail* Cloud storage* Content*eIDAS/

De-Mail

#1 #3 #1#1

#2 #1

#4 #7 #2#2

#3 #5

n.a.

* E-Mail and Cloud storage: Representative survey of Convios Consulting on behalf of United Internet, 2019 (privately most used e-mail / cloud provider in Germany)Content: die medienanstalten, MedienVielfaltsMonitor 2019-I, Marktanteile Onlinemedien

#4

––

–

–

ID

#3

#1

Differentiation through data

protection and data security

Advertising marketing via

United Internet Median.a.

#2n.a.–

n.a.


CONSUMER APPLICATIONS: ACCOUNTS

40.82 million consumer accounts in total

(+ 970,000), thereof

38.51 million free accounts (+ 920,000)

2.31 million pay accounts (+ 50,000)

25.8 million with mobile usage (+ 1,200,000)

20.1 million with cloud storage (+ 700,000)

(in millions)

37,59 38,51

0,005,00

10,0015,0020,0025,0030,0035,0040,0045,00

2.3131.12.2019

2.2630.06.2020

39.85 40.82+0.97

Free AccountsPay Accounts


CONSUMER APPLICATIONS: REVENUES


+ 0.9 % in the core business with pay accounts and

portal marketing despite - € 4.2 million pandemic-

related revenue losses compared to the previous

year**

- 24.1 % in the area of low-margin third-party

marketing

+ 4.5 % in core business without the pandemic effect


0

20

40

60

80

100

120 119.7

H1 2019*2.9 2.2

H1 2020

119.4

116.5 117.5

+0.3(+0.3%)

Pay accounts/portal marketingSale of th ird-party inventory

* Revenues in 2019 after conversion of third-party marketing sales from gross to net disclosure in 2020; € 7.3mn/123.8mn values booked in 2019 based on gross disclosure** Significant decline in the online advertising market due to the strong restraint of many advertisers during coronavirus pandemic


CONSUMER APPLICATIONS: EBITDA

- 0.6 % EBITDA to € 47.0 million

€ - 3.4 million pandemic-related burdens on earnings


+ 6.6% comparable EBITDA – without pandemic effect

0

5

10

15

20

25

30

35

40

45

50 47.0

H1 2019 H1 2020

47.3 -0.3(-0.6%)



BUSINESS APPLICATIONS: FROM WEB HOST TO E-BUSINESS SOLUTIONS PROVIDER

Websitedesign

Sectorcontent

E-payment solutions

E-shops

BusinessappsMobile apps

SEO tools

E-mailmarketing

Locallistings

Displayadvertising


BUSINESS APPLICATIONS: ASSETS

Leading European provider

Active in 12 countries: #1 in Germany, Spain, Poland and Austria, #2 in UK and France*

Broad product portfolio

In-house developments and

cooperations with development

partners

Powerful data centers

* Based on ccTLDs


BUSINESS APPLICATIONS: CUSTOMER CONTRACTS

8.32 million customer contracts (+ 170,000)

4.34 million abroad (+ 90,000)

3.98 million domestic (+ 80,000)

(in millions)

0123456789

8.15

31.12.2019 30.06.2020

8.32

3.90

4.25

3.98

4.34

+0.17

AbroadDomestic


BUSINESS APPLICATIONS: REVENUES


Customer growth

Up- and cross selling

Positive effects from low-margin and volatile

domain parking business

0

50

100

150

200

250

300

350

400

450

500

H1 2019 H1 2020

443.3471.6 +28.3

(+6.4%)



BUSINESS APPLICATIONS: EBITDA

+ 13.1 % EBITDA to € 167.8 million

thereof € 48.0 million marketing expenses (prior year:

€ 57.6 million, thereof € 13.7 million rebranding)


0

20

40

60

80

100

120

140

160

180

H1 2019 H1 2020

148.3

167.8+19.5

(+13.1%)



More than 25 million customer contracts for the first time (+ 460,000 to 25.20 million contracts)

Effects on earnings in the previous period:

€ + 21.5 million extraordinary income from the sale of virtual minds shares in H1 2019

€ - 13.7 million from regulation of the subscriber line and EU SMS in H1 2020 (prior year: € - 1.0 million)

€ - 5.6 million initial 5G costs in H1 2020 (prior year: € - 1.9 million)

€ - 0.4 million integration costs in H1 2020 (prior year: € - 2.3 million)

€ - 12.2 million from profit charges due to coronavirus pandemic in H1 2020

+ 6.3 % comparable EBITDA

+ 11.4 % comparable EBIT

Revenues and earnings figures (in € millions) H1 2019 H1 2020 Change

Revenues 2,556.5 2,657.9 + 4.0 %EBITDA 630.0 620.5 - 1.5 %EBIT 390.8 385.4 - 1.4 %

Operative EPS* in € 0.90 0.98 + 8.9 %

Operative EPS* before PPA in € 1.14 1.23 + 7.9 %

KPIs H1 2020

* H1 2019 without sale of virtual minds (EPS effect: € + 0.11) and without impairment of Tele Columbus (EPS effect: € - 0.17); H1 2020 without reversal of Tele Columbus impairment losses (EPS effect: € + 0.08)


OUTLOOK 2020


FORECAST 2020

On August 11, United Internet concretized the revenue forecast. We now expect growth of

approx. 4 % (prior year: € 5,194.1 million).

EBITDA is expected to remain at the previous year's level (€ 1,265.7 million)

This forecast is subject to uncertainties, as it is currently not possible to precisely estimate

the further duration and effects of the coronavirus pandemic.


RESULTS H1 2020


Assets 31.12.2019 30.06.2020 Comments

Property, plant and equipment / intangible assets 3,285.6 3,300.8

Capex: € 123.3 million plus leasingadditions (IFRS 16): € 135.3 million; D&A: € 235.1 million

Goodwill 3,616.5 3,609.8 Mostly unchanged

Financial assets 286.5 282.6 Mostly unchanged

Accounts receivable 403.7 416.6 Increase at the reporting date

Contract assets 682.1 714.4 Updating of contract assets

Inventories and deferred expenses 600.6 620.0 Increase of inventories to ensure supply availability

Income tax assets and liabilities otherassets 93.8 123.1 Increase in receivables from hardware

suppliers in particular

Cash and cash equivalents 117.6 54.6 Decrease due to repayment of bank liabilities and dividend payment

Total 9,086.4 9,121.9

GROUP: BALANCE SHEET AS OF JUNE 30, 2020 ( I)(acc. to IFRS in € millions)


GROUP: BALANCE SHEET AS OF JUNE 30, 2020 ( I I)(acc. to IFRS in € millions)

Liabilities and equity 31.12.2019 30.06.2020 Comments

Equity 4,614.7 4,769.5 Equity ratio: 52.3 %

Liabalities to banks 1,738.4 1,569.0 Bank liabilities (net):

€ 1,514.4 million(31.12.2019: € 1,620.8 million)

Trade accounts payable 481.6 453.4 Increase at the reporting date

Contract liabilities 184.8 179.1 Updating of contract assets

Accrued taxes anddeferred tax liabilities 443.5 454.5 Mostly unchanged

Other accrued liabilities /other liabilities 1,623.4 1,696.4

Increase in particular due to new long-term rental agreements (office buildings)

Total 9,086.4 9,121.9


GROUP: KEY FIGURES AS OF 30 JUNE 2020

Contracts in millions / financial KPIs acc. to IFRS in € millions 30.06.2019 30.06.2020 Change

Customer contracts with costs 24.29 25.20 + 0.91 Mio.

Advertising financed Free-Accounts 36.95 38.51 +1.56 Mio.

Revenues 2,556.5 2,657.9 + 4.0 %

EBITDA 630.0 620.5 - 1.5 %

EBIT 390.8 385.4 - 1.4 %

EPS without special times in € (1) 0.90 0.98 + 8.9 %

Capex - 102.8 - 123.3

Free Cashflow(2) 138.0 211.0 + 73.0 mn

(1) Sale of virtual minds in H1 2019 (EPS effect: +0.11 €) as well as impairments of Tele Columbus (EPS effect: -0.17 €) and reversals of impairments in H1 2020 (EPS effect: +0.08 €) (2) Free cash flow is defined as net cash provided by operating activities less capital expenditure on intangible assets and property, plant and equipment, plus cash inflows from the disposal of intangible assets and property, plant and

equipment (excluding aperiodic tax payments); free cash flow in 2019 and 2020 including the repayment portion of lease liabilities that have been reported in cash flow from financing activities since FY 2019 (IFRS 16)


UNITED INTERNET AG

6-Month 2020

Montabaur,August 13, 2020

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