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

Presentation Q1 2020 and Outlook

Agenda  Business Development Q1 2020  Outlook 2020 2

Business Development Q1 2020 3

Customer Contracts  14.43m customer contracts (+ 0.10m) Customer contracts (in million)  10.10m mobile internet (+ 0.11m) 16,00 14.43 4.33m broadband lines (ADSL/VDSL/FTTH) (-0.01m)  14.33 14,00 12,00 10,00 10.10 9.99 8,00 6,00 4,00 2,00 4.34 4.33 0,00 31.12.19 31.03.20 Mobile Internet Broadband Lines 4

Revenue  + 4.2 % Revenue to €940.7m Revenue (in €m)  + 3.7 % Service revenue to €747.8m 1.000 940.7 902.5  + 3.3 % Service revenue adjusted due to coronavirus 750 effects 747.8 720.6  + 6.2 % Other revenue, especially low-margin hardware 500 business 250 192.9 181.7 0 Q1 19 Q1 20 5

EBITDA  – 2.6 % EBITDA to €164.0m EBITDA (in €m)  17.4 % EBITDA margin (previous year: 18.7%) 200  EBITDA Q1 2020 contains: 168.5 164.0 150  –€2.8m initial costs for 5G wireless network (previous year: –€1.0 m) 100  –€0.3m one-offs from integration projects (previous year: –€2.1m) 50  –€4.9m one-offs from increased usage because of 0 coronavirus-lockdown Q1 19 Q1 20  –€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 6

Highlights Q1 2020  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 7

5G Activities 2020   Purchase/Rent of frequencies  Negotiations regarding national roaming and infrastructure sharing ongoing  Cooperation discussions with wireless network suppliers ongoing  Expansion of 1&1 Versatel fibre optic network ongoing Preparation 5G network construction 5G frequency Presumable date of next auction frequency auction 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 8

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 – 14.8 – 19.0 + 28.6 % contract assets 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 % 9

Balance Sheet 31 December 2019 31 March 2020 A SSETS L IABILITIES A SSETS L IABILITIES (in €m) (in €m) 6,461.9 6,461.9 6,544.2 6,544.2 Short-term liabilities 544.4 Short-term liabilities 548.9 Short-term assets 1,277.4 Short-term assets 1,444.6 Cash and Cash and 31.8 Long-term liabilities Long-term liabilities 1,270.5 9.7 1,272.2 cash equivalents cash equivalents Long-term assets Long-term assets 5,152.7 5,089.9 Equity 4,729.3 Equity 4,640.8 10

Cash Flow (in €m) Q1 2019 Q1 2020 Change Comments  €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 Net inflow of funds from 17.0 105.0 + 518.9 % payables and other assets and liabilities operating activities  €–37.2m from change in receivables and liabilities relating to associated companies  €+6.7m reduction in inventories  €–7.6m Capex Cash flow from investment – 2.3 – 123.6 activities  €–116.0m investment of free cash with UITD Cash flow from financing – 14.0 – 3.5  €–3.5m amortisation of financial liabilities activities Free cash flow (1) 14.7 97.5 + 561.1 % (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 11 investments in intangible and tangible assets plus payments from the disposal of intangible and tangible assets.

Bridge EBITDA to FCF + 6.7 - 25.6 - 2.1 164.0 - 37.9 - 7.6 97.5 EBITDA Contract Asset Inventories Other Working Taxes Capex FCF Q1 2020 Q1 2020 and Liabilities Capital Q1 164.0 – 2.1 + 6.7 – 25.6 – 37.9 – 7.6 97.5 12

Outlook 2020 13

Forecast 2020  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 14

Presentation Q1 2020 and Outlook

Disclaimer and Contact 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. Contact 1&1 Drillisch AG Phone: +49 61 81 / 412 218 Investor Relations Internet: www.1und1-drillisch.de Wilhelm-Röntgen-Strasse 1-5 Email: ir@1und1-drillisch.de D–63477 Maintal 16