Presentation Q1 2020 and Outlook Agenda Business Development Q1 - - PowerPoint PPT Presentation

Presentation Q1 2020 and Outlook

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Agenda

• Business Development Q1 2020
• Outlook 2020

Business Development Q1 2020

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• 14.43m customer contracts (+ 0.10m)
• 10.10m mobile internet (+ 0.11m)
• 4.33m broadband lines (ADSL/VDSL/FTTH) (-0.01m)

4.34 4.33 9.99 10.10

0,00 2,00 4,00 6,00 8,00 10,00 12,00 14,00 16,00

14.43

Mobile Internet Broadband Lines

14.33

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31.03.20 31.12.19

Customer contracts (in million)

Customer Contracts

181.7 192.9 720.6 747.8 250 500 750 1.000 940.7 Q1 20 Q1 19 902.5

Revenue (in €m)

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Revenue

• + 4.2 % Revenue to €940.7m
• + 3.7 % Service revenue to €747.8m
• + 3.3 % Service revenue adjusted due to coronavirus

effects

• + 6.2 % Other revenue, especially low-margin hardware

business

50 100 150 200 164.0 Q1 20 Q1 19 168.5

EBITDA (in €m)

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EBITDA

• – 2.6 % EBITDA to €164.0m
• 17.4 % EBITDA margin (previous year: 18.7%)
• EBITDA Q1 2020 contains:
• –€2.8m initial costs for 5G wireless network

(previous year: –€1.0 m)

• –€0.3m one-offs from integration projects

(previous year: –€2.1m)

• –€4.9m one-offs from increased usage because of

coronavirus-lockdown

• –€4.2m regulation “subscriber line price increase” (07/19)
• –€2.7m regulation “text message costs EU” (05/19)

+ 4.3 % EBITDA adjusted for aforementioned effects

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• Stable growth in service revenues (+ 3.7 %/+ 3.3 % before coronavirus effects)
• +4.3% adjusted EBITDA growth (after 5G, one-offs, regulatory effects)
• 100,000 new customer contracts
• Changes in user behaviour because of coronavirus pandemic lead to decline in results of

€4.9m in March

Highlights Q1 2020

• Purchase/Rent of frequencies
• Negotiations regarding national roaming and infrastructure sharing
• ngoing
• Cooperation discussions with wireless network suppliers
• ngoing
• Expansion of 1&1 Versatel fibre optic network
• ngoing

5G Activities 2020

8 Presumable date of next frequency auction

5G network construction

5G frequency auction

2019 2020 2030 2025 2021 2022 2023 2024 2026 2027 2028 2029

Preparation



Profit Situation Q1 2020 v. Q1 2019

(in €m) Q1 2019 Q1 2020 Change Revenue 902.5 940.7 + 4.2 % Cost of sales – 633.2 – 668.1 + 5.5 % Gross Profit from Revenues 269.3 272.6 + 1.2 % Distribution costs – 109.4 – 106.5 – 2.7 % Administration costs – 23.1 – 25.3 + 9.5 % Other operating income/expenses 6.9 4.6 – 33.5 % Impairment losses from receivables and contract assets – 14.8 – 19.0 + 28.6 % Results from Operating Activities 128.8 126.4 – 1.9 % Financial Results – 1.3 – 0.1 Profit Before Taxes 127.5 126.2 – 1.0 % Tax expenses – 38.5 – 38.0 – 1.1 % Consolidated Profit 89.0 88.2 – 0.9 %

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5,089.9 4,729.3 9.7 1,270.5 1,444.6 544.4 5,152.7 4,640.8 31.8 1,272.2 1,277.4 548.9

Balance Sheet

31 December 2019 31 March 2020

6,544.2 6,544.2 Equity Long-term liabilities Short-term liabilities Long-term assets Cash and cash equivalents Short-term assets

ASSETS LIABILITIES ASSETS LIABILITIES

(in €m) (in €m)

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6,461.9 6,461.9 Equity Long-term liabilities Short-term liabilities Long-term assets Cash and cash equivalents Short-term assets

Cash Flow

(1) Definition of free cash flow: free cash flow is calculated as the net payments from operating activities in continued operations (items disclosed in the capital flow statement) less investments in intangible and tangible assets plus payments from the disposal of intangible and tangible assets.

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(in €m) Q1 2019 Q1 2020 Change Comments

Net inflow of funds from

• perating activities

17.0 105.0 + 518.9 %

• €120.9m cash flow from operating activities
• €–2.1m

from change in contract assets and contract liabilities

• €+6.9m

from change in trade receivables and payables and other assets and liabilities

• €–37.2m from change in receivables and liabilities

relating to associated companies

• €+6.7m

reduction in inventories Cash flow from investment activities – 2.3 – 123.6

• €–7.6m

Capex

• €–116.0m investment of free cash with UITD

Cash flow from financing activities – 14.0 – 3.5

• €–3.5m

amortisation of financial liabilities Free cash flow(1) 14.7 97.5 + 561.1 %

164.0

• 2.1

+ 6.7

• 25.6
• 37.9
• 7.6

97.5 EBITDA Q1 2020 Contract Asset and Liabilities Inventories Other Working Capital Taxes Capex FCF Q1 2020

Bridge EBITDA to FCF

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Q1 164.0 – 2.1 + 6.7 – 25.6 – 37.9 – 7.6 97.5

Outlook 2020

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Forecast 2020

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• More than 500,000 new customer contracts
• Revenues and profit at previous year’s level
• This forecast is still subject to uncertainties, due to the effects of the coronavirus crisis.

Therefor, the forecast 2020 will be updated in the context of the half-yearly report 2020

Presentation Q1 2020 and Outlook

This presentation contains future-oriented statements and forecasts representing the current assessments of the management at 1&1 Drillisch AG. These assessments and statements are subject to changes and uncertain framework conditions that are for the most part difficult to predict and are beyond the control of 1&1 Drillisch AG. 1&1 Drillisch AG is not under any obligation to publish any information resulting in changes in framework conditions or to publish revised information.

1&1 Drillisch AG Investor Relations Wilhelm-Röntgen-Strasse 1-5 D–63477 Maintal Contact Phone: +49 61 81 / 412 218 Internet: www.1und1-drillisch.de Email: ir@1und1-drillisch.de

Disclaimer and Contact

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