Drillisch AG Company Presentation. March 2014

Transcription

1 Drillisch AG Company Presentation March 2014

2 Agenda Highlights 2013 Guidance and Take-Aways Page 2

3 Financial Highlights 2013 Subscriber 2013 MVNO-subscribers +16.0%. Thereof Budget-subscribers +69.5% Q Budget-subscribers +123,000 Gross Profit EBITDA 2013 Gross Profit +9.4% to million Margin 41.0% (+7.4 percentage points) Q Gross profit +5.8% to 31.9 million Margin 44.0% (+5.8 percentage points) 2013 EBITDA +14.4% to 70.8 million Margin 24.4% (+5.3 percentage points) Q EBITDA +27.9% to 18.7 million Margin 25.7% (+7.3 percentage points) Cash-Flow 2013 CF from curr. Business operations % auf 57.0 million Q CF from curr. Business operat. 25.9m (prev. year: 17.2m) ALL EXPECTATIONS REACHED OR OUTPERFORMED xxx Page 3

4 Drillisch AG at a Glance Independent MVNO in the German Telco Market Price and Innovation Leader MVNO-business model: Drillisch purchases advance services from MNOs Telefonica and Vodafone and distributes own attractive tariffs and products; Focus on profitable post paid market Owner of the contract rights Operates like a network operator without high infrastructure costs Low capex requirements In total 1.900m customers (thereof 1.705m MVNO customers; +16.0% y-o-y) Price and innovation leadership, proved by TÜV seals Focus on cost-effective online distribution Multi-brand strategy with attractive product portfolio and proprietary IT platform; Growth segments: Mobile Internet, LTE and Data monetisation Strong Cashflow generating and attractive dividend policy (yield of 6.5% (1) ) COMPLETED TRANSITION LEADS TO CONSIDERABLE IMPROVEMENT OF PROFITABILITY (1) Based on Xetra share price (20 March 2014) Page 4

5 Drillisch Group at a glance SUCCESSFUL WITH INNOVATIVE RATES AND TRANSPARENT PRODUCTS Drillisch Portfolio (Choice) Awards for Price and Quality (Choice) Highly sustainable Quality Management reconfirmed again CUSTIOMER SATISFACTION AND CLIENT WILLINGNESS TO RECOMMEND (UP TO 89%) Page 5

6 Multi Brand Strategy* Drillisch SUSTAINABLE QUALITY MANAGEMENT + HIGH CUSTOMER SATISFACTION 4G 2G 3G Voice SMS Transparenz Qualität Preis Budget Tarife * Not all of the brands of the Drillisch-group are listed Page 6

7 All-in and Flat Tariff in 2013 PRICE LEADER IN ALL SEGMENTS FOR FIRST-TIME USER TO FULL FLAT All-in XS min./sms 100 MB Price Leadership in all segments From 4.95 for beginners To Full-Flat Voice Flat SMS Flat 1 GB Flat XM ab All-in XM min./sms 300 MB Speed Up to 50.0 Mbit/s Data bundles as required LTE Rate All brands up to 50 Mbit/s Voice Flat 500 MB Flat XS ab All-in XL min./sms 500 MB Highspeed as driver Upgrade to LTE Data Monetisation SUCCESSFUL WITH PROVEN QUALITY, EXCELLENT REFERENCES & TRANSPARENT PRODUCTS Page 7

8 Subscriber Development SUBSCRIBER DEVELOPMENT SUBSCRIBER FOCUS 1,593 1,648 1,705 1,470 1,531 1,389 1,211 1,314 1,216 0,553 0,517 0,441 0,320 0,229 0,207 0,195 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 MSP MVNO Total Volume Budget SUBSCRIBER DEVELOPMENT MVNO subscriber growth k to m (prev. Year: 1.470m subscriber) Total Subscribers* - 10k subscribers 2013: m subscribers 2012: m subscribers *Growth after adjustment of SP-clientele SUBSCRIBER FOCUS Budget subscribers YoY: + 351k to 856k (prev. year: 505k) Q4-13: +123 k; Q3-13: +76k Volumen subscribers YoY: -117 k to 848k (prev. year: 965k) Q4-13: -67 k, Q3-13: -21k Page 8

9 New Rate Plans as of 1 st April SUITABLE RATE PLANS BETTER PREFORMANCE AT A MORE FAVORABLE PRICE All-in Voice 50 Min. SMS MB Voice Flat SMS Flat 2000 MB 14.4 Mbit/s Flat XM All-in Voice 100 Min SMS MB Voice Flat SMS Flat 1000 MB 14.4 Mbit/s Flat XM Price Leadership in all segments of the German Market All-in Voice 250 Min. SMS MB Voice Flat SMS Flat 500 MB Flat XS 500S All-in Voice 250 Min. SMS MB Flat XS Voice Flat 500 MB Page 9

10 Comparison old and new OLD WORLD NEW WORLD All-in XS 4.95 (50 Min./ 50 SMS MB) All-in XM 7.95 (100 Min./ 100 SMS MB) All-in XL (250 Min./ 250 SMS MB) Flat XS (Voice Flat MB) Flat XM ab (Voice + SMS Flat + 1GB) Alte Produktfamilie xxx 100 MB more 1 cheaper 5 or33 % cheaper 2 cheaper+ 500 MB more 2 cheaper +SMS Flat 5 or 20 % cheaper 14,4 Mbit/s 1 GB more 14,4 Mbit/s All-in (50 Min. +50 SMS MB) All-in (100 Min SMS MB) All-in (250 Min SMS MB) All-in (250 Min SMS MB) Flat XS (Voice Flat MB) Flat XS 500S (Flat Voice/SMS MB) Flat XM (Voice/SMS Flat + 1 GB) Flat XM (Voice/SMS Flat + 2 GB) Page 10

11 EU-Tariff as of April 1 st, 2014 TARIFF REVOLUTION! BUDGET AND FLAT-TARIFF FOR USAGE IN EUROPE! EU Tarif S EU Tarif M EU Tarif L EU Tarif Flat S Target group/ USPs EU-Tariff for Beginners! EU-Tariff for low voice usage! THE Smartphone-EU Tariff! EU-Flat for Travellers and for constant voice usage Terms Monthly Price Starter Package Contract 1 month 1 month 1 month 1 month Minutes included Price per additional minutes Home Country / EU SMS included Price per additional SMS Home Country / EU Data Internet price per usage 0.15 per MB up to 30 extra MB (Total 130 MB) max Home Country/EU: 50 Home Country/EU: 50 Home Country/ EU: 100 Home Country: FLAT EU: Home Country/EU: 50 Home Country/EU: 50 Home Country/ EU: 100 Home Country: FLAT EU: Home Country/ EU: 100 MB Home Country/ EU: 200 MB Home Country/ EU: 300 MB Home Country: 500 MB EU: 100 MB Internet additional data volume + 70 MB + 70 MB + 70 MB + 70 MB 131 MB MB Speed 7.2 Mbit/s 7.2 Mbit/s 7.2 Mbit/s 7.2 Mbit/s Page 11

12 EU-Tarif as of July 1 st, 2014 VOICE & MOBILE INTERNET (EU) UP TO 37% CHEAPER THAN ROAMING REDULATION EU-Roaming-Regulation Prices as per : Min. outgoing Min. incoming SMS Daten / MB Drillisch EU-Roaming-Prices as per : Min. outgoing 0.15 Min. incoming 0.05 SMS 0.07 Daten / MB 0.15 EU Light 1.20 mtl. Min. outgoing 0.06 Min. incoming 0.00 SMS 0.06 Daten / MB 0.06 EU monthly Min. + SMS 100 Min. incoming 0.00 Further Min SMS 0.07 EU Internet 4.50 monthly Daten / MB 100 Per additional MB 0.15 CAP 30: max for a further 100 MB (automatically) EU Internet 7.95 Min. + SMS 100 Daten / MB 100 Further Min Min. incoming 0.00 Further SMS 0.07 Further MB 0.15 WITH INNOVATIVE OPTIONS A CARELESS USAGE IN EU-COUNTRIES Page 12

13 Financials Increase in relevant KPIs and comparative Service Revenues in m IV/2013 IV/2012 Service Revenues* Gross Profit EBITDA Service Revenues* Gross Profit EBITDA 292,1 285,1 108,9 119,0 61,9 70,8 74,9 72,2 30,2 31,9 14,6 18, Q4-12 Q Q4-12 Q Q4-12 Q4-13 Moderate decline Increase Q4 compared with Q3 +2,8% Increase 2013 Gross Profit +9.4% Margin for first time > 40% Increase 2013 EBITDA +14.4% Margin > 25% * Service Revenues adjusted for already sold prepaid subscribers and impact from the reduction of the termination rates Page 13

14 Average Gross Profit per User (AGPPU) POSITIVE DEVELOPMENT SUSTAINABLE AGPPU CONTRIBUTION , , , , , ,00 0 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 0,00 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Total Volume Budget Blended Volume Budget I/2013 II/2013 III/2013 IV AGPPU Budget Subscribers AGPPU Volume Subscribers AGPPU Subscribers (blended) Page 14

15 Balance Sheet ASSETS LIABILITIES ,5 Other Current Assets 65,9 Short-Term Liabilities 77,3 Cash 55,0 336,5 Long-Term Liabilities 41,4 93,3 391,7 187,0 Fixed Assets 110,3 120,2 Equity 217, m 352.3m 522.6m 352.3m EQUITY RATIO REACHES 61.8 PERCENT ( : 23.0%) Page 15

16 Keypoints from Cashflow (1) In m Comment Cashflow from current business activities Transformation to MVNO business modell completed. Operating Cashflow is reflecting the potential of the MVNO segment Cashflow from investment activities Cashflow from financing activities m received payments from the sale of freenet stock ( in the balance sheet as available for sale asset (AFS) 100m from the issue of a convertible bond and 125m for the repayment of a bond (exchangeable on freenet shs) 192.6m amortisation of loan Change in cash Free Cashflow (2) Clear increase from 2014 because CAPEX returns to normal level ( 3-4m p.a.) (1) Detailed cash flow (page 63, Annual Report 2013 (2) Free Cashflow Cashflow from current business activities minus Capex Page 16

17 Bridge EBITDA to FCF Free Cashflow Bridge 2013 in m 70,8-4,4-9,5-19,9 37,1 EBITDA Change in NWC Taxes Capex Free Cash Flow Page 17

18 Net Debt NET DEBT 2012 m Bank Loans (Non-Recourse) Exchangeable bond Financial Liabilities 67.9 Leasing Liabilities 1.1 Cash and cash equivalents Net Debt Adjusted Net Debt (exl. Non-Recourse) LTM EBITDA 61.9 NET DEBT 2013 m. Bank Loans 0.0 Convertible Bond 86.2 Leasing Liabilities 1.1 Cash and Cash Equivalents Net Debt LTM EBITDA ,1 1,8 Net Debt / LTM EBITDA adj. Net Debt / LTM EBITDA -1,4 Net Debt / LTM EBITDA DEBT FREE, WITHOUT LEVERAGE AND HIGH CASH LEVEL Page 18

19 Outlook 2014 and 2015 CONTINUATION OF THE SUCCESS STORY IN THE 12 TH YEAR Subscribers To increase the MVNO subscriber base EBITDA 2014 Increase of 6%-20% to million EBITDA 2015 Further increase of ca. 17% to million Dividend Long-term orientated dividend policy Dividend proposal to AGM (21 st May) 1.60/ share (prev. year: 1.30) Dividend guidance for bsuiness year least 1.60 FURTHER GUIDANCE FOR PROFITABLE GRWOTH IN 2014 AND 2015 Page 19

20 Take Aways - KPIs - all defined targets ahead of expectations - Renewed seals for quality and transparency - Price leader in all segments - Flexibility No debt and good cash position - Increase of entire EBITDA for business year 2014 and Increase of dividend and commitment for a 3-year dividend guidance Page 20

21 Drillisch-Share SHAREHOLDER STRUCTURE PER 20 MARCH 2014 Shareholder Structure in % in shs. Free Float 80.11% 42,612,931 Treasury Shares 9.76% 5,189,015 M. Brucherseifer 3.15% 1,677,656 Fidelity FMR, Boston 5.45% 2,896,567 V. Choulidis 0.75% 400,000 P. Choulidis 0.75% 400,000 J. Weindl 0.02% 10,439 Dr. H. Lennertz 0.01% 2,407 total % 53,189,015 Index Membership Rank Market Cap Rank Turnover TecDAX 30 (Jan. 2014) Blue Chip Indizes Germany Source: Notifications acc 21 ff WpHG; Free Float acc. to Deutsche Boerse AG per cent Page 21

22 Disclaimer and Contact This presentation contains forward-looking statements that reflect the current views of the management of Drillisch AG with respect to future events. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond the control of Drillisch AG. Drillisch AG does not undertake any obligation to publicly update or revise information provided during this presentation. Drillisch AG Wilhelm-Röntgen-Straße 1-5 D Maintal Telefon: + 49 (0) / 4123 Telefax: + 49 (0) / Internet: ir@drillisch.de Drillisch AG Investor Relations Wilhelm-Röntgen-Straße 1-5 D Maintal Telefon: + 49 (0) / Telefax: + 49 (0) / ir@drillisch.de Page 22

23 EBITDA Guidance vs. Delivery EBITDA (adjusted) Guidance FY Positive Development Positive Development 52m 58m 67-70m (old: 77-80m) 82-85m m Q m 46m Q m Upper end Q3 43m 48m 70m EBITDA (IFRS) 43.5m 49.3m 52.6m 61.9m 70.8m Growth (YoY) 7.1% 13.3% 6.7% 17.8% 14.4% ~ +16%-20% (e) ~ +17% Overdelivery Overdelivery Overdelivery Overdelivery Overdelivery Increased Vergleich mit Guidance: DRILLISCH IS DELIVERING SUSTAINABLE PROFIT INCREASE FOR THE 11 TH CONSECUTIVE YEAR WITH CONTINUOUSLY OVERDELIVERING ON INITIAL EBITDA GUIDANCE Source: Company Information, * prelim. Number 2013 Page 23

24 Competitional Overview - Budget Tariff Provider Tariff Basic Fee Minutes SMS Data SP * Bill after 24 months Saving CD * Drillisch All-in MB Telekom Complete Comfort XS MB Vodafone Smart S MB o2 Blue Basic 9.99 o MB Congstar Smart S MB Drillisch All-in MB Lidl Mobile Smart S Einheiten 300 MB Aldi Talk PAKET Einheiten 300 MB Klarmobil Allnet-Starter MB Congstar Smart M MB Simyo Easy All-Net Einheiten 200 MB Fonic Smart S Einheiten 200 MB Blau Smart Option MB Fyve Kombi Paket M MB BASE smart Wunschflat MB Drillisch All-in MB Fonic Smart Einheiten 500 MB Aldi Talk PAKET Einheiten 400 MB Kaufland Surf & Talk Einheiten 500 MB Fyve Kombi Paket L MB Drillisch All-in 1000 plus GB Simyo GIGA All-Net Einheiten 1 GB Mobilcom-debitel Smart Surf GB Fyve Kombi Paket XXL GB * SP = Starting Price for Package, CD = Contract Duration Page 24

25 Competitional Overview Flat Tariff Provider Tariff Basic Fee Minutes SMS Data SP * Bill after 24 months Saving CD * Kleine Datenpakete Mittlere Datenpakete Große Datenpakete Drillisch Flat XS Flat MB Telekom Special Allnet Flat Flat 200 MB Vodafone Smart M Flat 300 MB o2 Blue Select o Flat 300 MB &1 All-Net-Flat Basic Flat 0, MB mobilcom-debitel Comfort Allnet Flat 0, MB Tele 2 Allnet Flat Internet Flat 0, MB Fonic All-Net Flat Flat 0, MB Klarmobil Allnet-Spar-Flat Flat 0, MB Blau Allnet-Flat Option Flat 0, MB Simyo All-Net Flat Flat 0, MB Simfinty Flat Flat 0, MB Otelo Allnet-Flat M Flat 0, MB Drillisch Flat XS 500S Flat Flat 500 MB Yourfone Allnet Flat Flat Flat 500 MB Congstar Allnet Flat M Flat Flat 500 MB Klarmobil Allnet-Spar-Flat Flat Flat 500 MB Otelo Allnet-Flat L Flat Flat 500 MB BASE all-in Flat Flat 500 MB mobilcom-debitel Telekom real Allnet Flat Flat 500 MB * SP = Starting Price for Package, CD = Contract Duration Seite 25

26 Competitional Overview Flat Tariff Provider Tariff Basic Fee Minutes SMS Data SP * Bill after 24 months Saving CD * Drillisch Flat XM Flat Flat 1 GB Simyo GIGA All-Net Flat Flat Flat 1 GB Congstar Allnet Flat L Flat Flat 1 GB &1 All-Net-Flat Plus Flat Flat 1 GB Otelo Allnet-Flat XL Flat Flat 1 GB mobilcom-debitel Vodafone Real Allnet Flat Flat 1 GB Drillisch Flat XM Flat Flat 2 GB &1 All-Net-Flat Pro Flat Flat 2 GB Simyo Giga-All-Net Flat Flat Flat 2GB BASE all-in plus Flat Flat 2 GB * SP = Starting Price for Package, CD = Contract Duration Page 26