Kabel Deutschland reports strong momentum in the third quarter of fiscal year 2011/2012

Transcription

1 INVESTOR RELATIONS RELEASE Kabel Deutschland reports strong momentum in the third quarter of fiscal year 2011/2012 Unterfoehring, February 16, 2012 Kabel Deutschland Holding AG ( Kabel Deutschland, KDH or the Company ), Germany s largest cable network operator, today released its consolidated financials for the third quarter and 9 months ended December 31, 2011 of its fiscal year ending March 31, Highlights for the third quarter ended December 31, 2011: In the third quarter the Company added 67.9 thousand Internet and Phone subscribers, up 4.5% from September 30, Premium TV (1) RGUs (2) up by 9.5% or thousand units quarter on quarter, of which 72.8 thousand units were DVR RGUs. Total blended monthly ARPU per subscriber (3) reached up by 0.99 or 7.3% from the prior year s third quarter. Revenues increased by 5.4% to million from million in the third quarter of the prior fiscal year. Adjusted EBITDA (EBITDA) (4) grew by 8.0% to million compared to million in the previous year s third quarter. The Company posted a quarterly net profit of 55.0 million, compared to a net loss of 36.5 million one year ago. Capital expenditures (Capex) (5) were million (versus 85.9 million in the same period of the prior year). As of December 31, 2011 the Total Net Debt (6) to EBITDA ratio was 3.6 times (third quarter annualized EBITDA). KDH s Management Board leaves the revenue, EBITDA, leverage and dividend guidance unchanged for the full fiscal year. The higher than expected demand for DVRs translates into higher success-based Capex. Therefore, Capex guidance for the full year was raised to to million, up from the higher end of the to million range previously. Kabel Deutschland Holding AG Page 1 / 14

2 The following table gives an overview on the performance in the third quarter of fiscal year 2011/2012 in comparison with the Company s third quarter results of the fiscal years 2010/2011, 2009/2010 and 2008/2009. Kabel Deutschland Holding AG Summary Table As of Unit Dec 31, 2008* Dec 31, 2009* Dec 31, 2010* Dec 31, Subscribers Direct Basic Cable subscribers # '000 7,412 7,337 7,309 7, % Internet and Phone Solo subscribers (7) # ' % Total direct subscribers # '000 7,500 7,490 7,533 7, % Indirect Basic Cable subscribers # '000 1,583 1,451 1,278 1, % Total unique subscribers (Homes Connected) # '000 9,083 8,941 8,811 8, % CAGR Thereof subscribers taking Internet and Phone services # ' ,064 1,307 1, % RGUs Premium TV # ' ,039 1,222 1, % Thereof Pay TV # ' , % Thereof DVR # ' % Internet # ' ,185 1, % Phone # ' ,219 1, % Subtotal New Services (8) # '000 2,236 2,945 3,627 4, % Basic Cable (9) # '000 9,212 9,052 8,936 8, % Total RGUs # '000 11,448 11,997 12,563 13, % Total RGUs / subscriber % CAGR For the period Unit Q3 FY 2008/09 Q3 FY 2009/10 Q3 FY 2010/11 Q3 FY 2011/ ARPU per subscriber Total blended TV ARPU (10) % Total blended Internet & Phone ARPU (11) % Total blended ARPU % Revenues TV Business revenues m % Internet and Phone Business revenues m % Total Revenues m % Adjusted EBITDA m % Thereof adjustments for non-cash MEP/LTIP expenses m Thereof other adjustments m Adjusted EBITDA margin (12) 42.8% 43.4% 45.7% 46.8% Net Loss / Net Profit for the Period m Capex m Capex as % of revenues 29.1% 21.3% 21.2% 24.6% Adjusted EBITDA - Capex (OpFCF) m % OpFCF margin 13.7% 22.1% 24.5% 22.2% As of Unit Dec 31, 2008 Dec 31, 2009 Dec 31, 2010 Dec 31, 2011 Total Net Debt m 3,108 3,039 2,903 2,866 Net Leverage (Q3 annualized) 5.2x 4.6x 3.9x 3.6x * TKS subscribers and RGUs have been included since the consolidated financial statements for the fiscal year ended March 31, To ensure comparability December 31, 2010 figures have been adjusted, accordingly. Kabel Deutschland Holding AG Page 2 / 14

3 Highlights for the 9 months ended December 31, 2011: Revenues increased by 5.6% to 1,257.4 million compared to 1,191.1 million in the 9 months of the previous fiscal year. EBITDA grew by 9.2% to million compared to million in the 9 months last fiscal year. EBITDA margin expanded to 46.9%, up from 45.4%. The Company posted a net profit of 99.9 million ( 45.1 million net loss in the 9 months last fiscal year). Capex was million compared to million in the previous year s 9 months, representing 22.5% of revenues. Operating free cash flow (EBITDA - Capex) amounted to million (previous year: million). Operational Performance Kabel Deutschland s third quarter of fiscal year 2011/2012 was characterized by strong operational momentum paving the way for future topline growth. In the third quarter, Internet and Phone subscriber growth regained traction and increased by 67.9 thousand subscribers, compared to 61.1 thousand net additions in the second and 51.5 thousand in the first quarter, respectively. Stronger net adds resulted in a higher number of subscribers on promotions and thus, fixed ARPU decreased by 0.06 quarter on quarter. At the same time, variable ARPU declined by 0.10 on a quarterly basis. These effects are reflected in a moderate decline of the total blended monthly Internet and Phone ARPU per subscriber (7) which decreased by 0.16 to 28.05, from in the second quarter. Since summer 2011, the Company has seen strongly rising demand for its Premium TV services. This trend continued in the third quarter with a quarterly increase of Premium TV RGUs by 9.5% or thousand units. Thereof, the DVR product accounted for 72.8 thousand units representing the strongest absolute growth ever. In addition, demand for Kabel Deutschland s HD Private offering, launched on October 5, 2011, was high with thousand subscribers receiving HD Private on December 31, 2011, and driving digital usage in the Company s customer base. The high demand for these TV services led to an increase of the total blended monthly TV ARPU per subscriber (8) to 9.86, up from 9.80 in the previous quarter. Further to this, the Company s direct subscriber base was up 9.6 thousand quarter on quarter at 7,500.9 thousand as of December 31, 2011 (7,491.3 thousand as of September 30, 2011). Total unique subscribers decreased by 38.9 thousand to 8,651.4 thousand quarter on quarter, predominantly resulting from disconnects by Level 4 operator Tele Columbus. Kabel Deutschland Holding AG Page 3 / 14

4 In total, the Company reported 13.3 million RGUs on December 31, 2011, up 5.7% or thousand from previous year. The continuous upselling of New Services (9) into the existing subscriber base lifted the RGU per subscriber ratio to 1.54 from 1.50 on September 30, 2011, and 1.43 one year ago. The upselling trend is reflected by the steady increase of the total blended monthly ARPU per subscriber which reached in the third quarter up by 0.99 or 7.3% year on year. Financial results In the third quarter, revenues increased by 5.4% to million compared to million in the third quarter of the prior fiscal year. TV revenues increased by 1.7% to million; Internet and Phone revenues grew by 14.2% year on year to million. Third quarter EBITDA grew year on year from million to million (up 8.0%) including an annual reimbursement of 11.0 million related to its Service Level Agreements with Deutsche Telekom (accounted for in the respective fourth quarter of previous fiscal years). EBITDA margin (10) climbed to 46.8%, up from 45.7% in the prior year s third quarter. The strong pull from customers for HD Private resulted in higher call volume in customer service centers and thus, higher selling expenses. Furthermore, Capex was million in the quarter ended December 31, Success-based Capex accounted for 72.5 million representing an increase of 26.9% or 15.4 million year on year, driven by the stronger than expected demand for the Company s DVR product. In the third quarter of the current fiscal year, operating free cash flow (EBITDA - Capex) amounted to 95.0 million which translates into an operating free cash flow margin of 22.2%. The Company posted a quarterly net profit of 55.0 million representing earnings per share of 0.62 (compared to 36.5 million net loss in the same period last fiscal year). Cash on hand of 14.5 million coupled with unused revolver capacity of million provided million of liquidity as of December 31, Total net debt declined to 2,865.5 million as of December 31, 2011 (prior year s third quarter: 2,903.1 million). The Net Debt to EBITDA leverage ratio decreased from 3.9 times one year ago to 3.6 times (third quarter annualized), approaching the Company s leverage target of just below 3.5 times as of March 31, Kabel Deutschland Holding AG Page 4 / 14

5 Refinancing and Extension In January 2012 Kabel Deutschland raised US$750 million of a new senior secured floating rate loan tranche with a maturity of February 1, 2019 (issued at 98.5). The new term loan F (TLF), which ranks pari passu with existing credit facilities and senior secured notes, priced at 325bps over Libor with a Libor floor of 100bps. The US$ term loan (with Libor floor) was FX hedged into Euro for five years which translates into a margin of Euribor plus 388bps. On January 23, 2012, Kabel Deutschland requested its existing TLA1, TLA2 and TLC1 lenders to roll their maturities from March 2014 to March The extension was successfully completed on February 1, million were extended by the lenders to the new term loan G (TLG). On February 9, 2012, Kabel Deutschland prepaid 557 million of the existing maturities utilising the proceeds of the recent US$750 million TLF. As a result of the extension and prepayment, Kabel Deutschland reduced its 2014 maturities to 71 million in the TLC1 facility. The Company s maturity profile was extended by 2 years to almost 6 years with no significant maturities becoming due before December Outlook Kabel Deutschland s Management Board today updated the guidance for the full fiscal year 2011/2012 as follows: Revenue growth at the low end of the range of 6.25 to 6.75% (unchanged), EBITDA in the range of to million (unchanged), Capex of to million, up from the higher end of to million, driven by success-based Capex for the higher than expected sales of DVRs, Leverage of just below 3.5 times by the end of the fiscal year (unchanged), Dividend for the fiscal year ending on March 31, 2012 of 1.50 per share or above (unchanged). Kabel Deutschland Holding AG Page 5 / 14

6 Recent developments On October 13, 2011, Kabel Deutschland announced that Annet Aris, Catherine Mühlemann, Paul Stodden and Torsten Winkler were designated as new members of KDH s Supervisory Board as of November 1, They succeed the Supervisory Board members John Hahn, Biswajit Subramanian and Robert Sudo (representing Providence Equity Partners) as well as Ian West. On November 3, 2011, KDH increased the market reach of DOCSIS 3.0 services to 8.3 million households, representing approximately 66% of its upgraded footprint. Today it stands at approximately 72%. On November 14, 2011, Fitch raised the Long-term Issuer Default Rating of Kabel Deutschland Vertrieb und Service GmbH to BB with outlook stable from BB- outlook positive. At the same time, Fitch affirmed the Company s Senior Secured Debt Rating at BB+. On December 9, 2011, Kabel Deutschland completed the share buyback program commenced on September 19, 2011 with a volume of 60 million. In total, around 1.48 million shares were acquired in the open market for an average purchase price of This relates to approximately 1.6% of the share capital. The acquired shares will be cancelled reducing the number of shares from 90.0 to approximately 88.5 million and the share capital, respectively. Additional information The Company will host a conference call this afternoon at 4.00 pm CET for capital market participants. Please refer to the website for further information. The full financial report for the third quarter and 9 months of the fiscal year 2011/2012 ending March 31, 2012 will be available for download from the website at The financials for Kabel Deutschland Holding AG s fourth quarter and fiscal year ending on March 31, 2011 will be released on June 14, About Kabel Deutschland Kabel Deutschland (KD), Germany s largest cable operator, offers its customers digital, high definition (HD) and analog TV, Pay TV and DVR offerings, Video on Demand, broadband Internet (up to 100 Mbit/s) and fixed-line Phone services via cable as well as mobile services in cooperation with an industry partner. The publicly listed company (MDAX, MSCI Europe, Stoxx 600 Europe) operates cable networks in 13 German federal states and supplies its services to approximately 8.7 million connected households. As per end of fiscal year 2010/2011, Kabel Deutschland had approximately 2,800 employees. In fiscal year 2010/2011 (12 months ended March 31, 2011), the Company reported revenues of 1,599 million and an Adjusted EBITDA of 729 million. Kabel Deutschland Holding AG Page 6 / 14

7 Contact: Kabel Deutschland Holding AG Investor Relations Unterfoehring Germany Elmar Baur: Michael Frank: Eva Brand: Assistant: Astrid Adamietz: / ; elmar.baur@kabeldeutschland.de / ; michael.frank@kabeldeutschland.de / ; eva.brand@kabeldeutschland.de / ; astrid.adamietz@kabeldeutschland.de This release is also available at This Investor Relations release may contain forward-looking statements. These statements are based on management's current expectations or beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forwardlooking statements. Although we believe that such forward-looking statements are reasonable, we cannot assure you that any forward-looking statements will prove to be correct. Such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this Investor Relations release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on the forward-looking statements. This Investor Relations release may contain references to certain non-gaap financial measures, such as Adjusted EBITDA and Capex, and operating measures, such as RGUs, ARPU, Unique subscribers pro forma calculation. These supplemental financial and operating measures should not be viewed in isolation as alternatives to measures of Kabel Deutschland s financial condition, results of operations or cash flows as presented in accordance with IFRS in its Consolidated Financial Statements. The non-gaap financial and operating measures used by Kabel Deutschland may differ from, and not be comparable to, similarly titled measures used by other companies. For further information please see in particular the footnotes in this Investor Relations release and the financial statements. We disclaim any obligation to publicly update or revise any forward-looking statements or other information contained in this Investor Relations release. It is pointed out that the present Investor Relations release may be incomplete or condensed, and it may not contain all material information concerning Kabel Deutschland Holding AG or the Kabel Deutschland Group. Kabel Deutschland Holding AG Page 7 / 14

8 Kabel Deutschland Holding AG, Unterfoehring Network data, Subscribers, Revenue Generating Units and ARPUs Dec 31, Sep 30, Dec 31, qoq qoq yoy yoy 2010* change change change change % % Operational Data Network (in thousands) Homes Passed 15, , , % % Homes Passed upgraded for two-way communication 12, , , % % Upgraded homes as % of Homes Passed 82.1% 82.1% 82.6% Homes Passed upgraded for two-way communication being marketed (13) 10, , , % % Subscribers (in thousands) Direct Basic Cable subscribers 7, , , % % Internet and Phone Solo subscribers % % Total direct subscribers 7, , , % % Indirect Basic Cable subscribers 1, , , % % Total unique subscribers (Homes Connected) 8, , , % % Thereof subscribers taking Internet and Phone services 1, , , % % RGUs (in thousands) Premium TV 1, , , % % Thereof Pay TV , , % % Thereof DVR % % Internet 1, , , % % Phone 1, , , % % Subtotal New Services 3, , , % % In % of total RGUs 28.9% 32.2% 33.7% Basic Cable 8, , , % % Total RGUs 12, , , % % RGUs per subscriber (in units) % % Penetration Premium TV RGUs as % of total Basic Cable subscribers 14.2% 16.8% 18.5% Internet RGUs as % of total unique subscribers 13.5% 15.8% 16.7% Phone RGUs as % of total unique subscribers 13.8% 16.2% 17.1% ARPU per Subscriber for the quarter ended (in /month) Total blended TV ARPU % % Total blended Internet and Phone ARPU % % Total blended ARPU % % * TKS subscribers and RGUs have been included since the consolidated financial statements for the fiscal year ended March 31, To ensure comparability December 31, 2010 figures have been adjusted, accordingly. Kabel Deutschland Holding AG Page 8 / 14

9 Kabel Deutschland Holding AG, Unterfoehring Consolidated Statement of Income according to IFRS for the Period from October 1, 2010 to December 31, 2010 and October 1, 2011 to December 31, 2011 October 1, 2010 to October 1, 2011 to December 31, 2010* December 31, 2011 change change ('000) ('000) ('000) % 1. Revenues 405, ,265 21, % 2. Cost of Services Rendered -206, ,309 21, % thereof Depreciation / Amortization -73,027-56,557 16, % 3. Other Operating Income 4,283 2,482-1, % 4. Selling Expenses -113, ,668 11, % thereof Depreciation / Amortization -43,967-20,081 23, % 5. General and Administrative Expenses -32,721-31,313 1, % thereof Depreciation / Amortization -4,749-5, % 6. Profit from Ordinary Activities 57, ,457 55, % 7. Interest Income % 8. Interest Expense* -105,479-48,336 57, % 9. Income from Associates % 10. Loss / Profit before Taxes -47,025 64, ,349 n/a 11. Benefit / Taxes on Income 10,482-9,322-19,804 n/a 12. Net Loss / Profit for the Period -36,543 55,002 91,545 n/a Attributable to: Equity Holders of the Parent -36,542 55,001 91,543 n/a Non-controlling Interests* n/a -36,543 55,002 91,545 n/a Earnings per Share**: Basic Earnings per Share n/a Diluted Earnings per Share n/a Adjusted EBITDA (4) 185, ,014 14, % Adjusted EBITDA margin (12) 45.7% 46.8% * ** The prior-year's consolidated statement of income for the period from October 1, 2010 to December 31, 2010 has been adjusted in accordance with the retroactive change due to IAS 32 in regard to non-controlling interests. Earnings per Share are calculated based on an average number of shares outstanding reflecting also the share buybacks. Kabel Deutschland Holding AG Page 9 / 14

10 Kabel Deutschland Holding AG, Unterfoehring Consolidated Statement of Income according to IFRS for the Period from April 1, 2010 to December 31, 2010 and April 1, 2011 to December 31, 2011 April 1, 2010 to April 1, 2011 to December 31, 2010* December 31, 2011 change change ('000) ('000) ('000) % 1. Revenues 1,191,138 1,257,368 66, % 2. Cost of Services Rendered -593, ,826-10, % thereof Depreciation / Amortization -210, ,263-18, % 3. Other Operating Income 9,484 9, % 4. Selling Expenses -341, ,901-16, % thereof Depreciation / Amortization -132, ,350-29, % 5. General and Administrative Expenses -98,664-93,295-5, % thereof Depreciation / Amortization -19,385-15,520-3, % 6. Profit from Ordinary Activities 166, ,679 98, % 7. Interest Income 4, , % 8. Interest Expense* -222, ,220-73, % 9. Income from Associates 3,401 1,575-1, % 10. Loss / Profit before Taxes -47, , ,538 n/a 11. Benefit / Taxes on Income 2,818-18,691-21,509 n/a 12. Net Loss / Profit for the Period -45,140 99, ,029 n/a Attributable to: Equity Holders of the Parent -45,140 99, ,026 n/a Non-controlling Interests* n/a -45,140 99, ,029 n/a Earnings per Share**: Basic Earnings per Share n/a Diluted Earnings per Share n/a Adjusted EBITDA (4) 540, ,901 49, % Adjusted EBITDA margin (12) 45.4% 46.9% * ** The prior-year's consolidated statement of income for the period from April 1, 2010 to December 31, 2010 has been adjusted in accordance with the retroactive change due to IAS 32 in regard to non-controlling interests. Earnings per Share are calculated based on an average number of shares outstanding reflecting also the share buybacks. Kabel Deutschland Holding AG Page 10 / 14

11 Kabel Deutschland Holding AG, Unterfoehring Consolidated Statement of Financial Position according to IFRS as of March 31, 2011 and as of December 31, 2011 ASSETS March 31, 2011 December 31, 2011 change audited ('000) ('000) ('000) Current Assets 1. Cash and Cash Equivalents 28,335 14,498-13, Trade Receivables 83,030 65,033-17, Inventories 16,244 26,233 9, Receivables from Tax Authorities Other Current Financial Assets 9,839 23,980 14, Prepaid Expenses 11,987 9,725-2,262 Total Current Assets 149, ,773-10,026 Non-Current Assets 1. Intangible Assets 673, ,076-47, Property and Equipment 1,158,502 1,176,565 18, Equity Investments in Associates 13,169 8,072-5, Deferred Tax Assets 1,373 1, Prepaid Expenses 18,268 33,143 14,875 Total Non-Current Assets 1,864,498 1,845,228-19,270 Total Assets 2,014,297 1,985,001-29,296 Kabel Deutschland Holding AG Page 11 / 14

12 Kabel Deutschland Holding AG, Unterfoehring Consolidated Statement of Financial Position according to IFRS as of March 31, 2011 and as of December 31, 2011 EQUITY AND LIABILITIES March 31, 2011 December 31, 2011 change audited ('000) ('000) ('000) Current Liabilities 1. Current Financial Liabilities 208,528 20, , Trade Payables 266, ,136-20, Liabilities to Associates Other Current Provisions 34,521 35,778 1, Liabilities due to Income Taxes 85,152 75,832-9, Deferred Income 238,599 93, , Other Current Liabilities 106,115 88,798-17,317 Total Current Liabilities 939, , ,264 Non-Current Liabilities 1. Non-Current Financial Liabilities 2,546,209 2,887, , Deferred Tax Liabilities 64,610 51,047-13, Provisions for Pension 44,594 48,043 3, Other Non-Current Provisions 23,199 24,437 1, Other Non-Current Liabilities 28,934 33,874 4, Deferred Income 674 2,373 1,699 Total Non-Current Liabilities 2,708,221 3,047, ,072 Equity 1. Subscribed Capital 90,000 90, Capital Reserve 126, , Own Shares 0-60,072-60, Cash Flow Hedge Reserve 0-28,912-28, Asset Revaluation Surplus Accumulated Deficit -1,850,799-1,750, ,020-1,633,308-1,622,406 10, Non-controlling Interests Total Equity (Deficit) -1,633,016-1,622,120 10,896 Total Equity and Liabilities 2,014,297 1,985,001-29,296 Kabel Deutschland Holding AG Page 12 / 14

13 Kabel Deutschland Holding AG, Unterfoehring Consolidated Statement of Cash Flows according to IFRS for the Period from April 1, 2010 to December 31, 2010 and from April 1, 2011 to December 31, 2011 April 1, 2010 to April 1, 2011 to December 31, 2010* December 31, 2011 change ('000) ('000) ('000) 1. Cash Flows from Operating Activities Net Loss / Profit for the Period* -45,140 99, ,029 Adjustments to Reconcile Net Loss / Profit to Cash Provided by Operations: Benefit / Taxes on Income -2,818 18,691 21,509 Interest Expense* 222, ,220-73,130 Interest Income -4, ,563 Accretion / Depreciation and Amortization on Fixed Assets 362, ,133-51,381 Gain / Loss on Disposal / Sale of Fixed Assets 2, ,950 Income from Associates -3,401-1,575 1, , ,587 44,466 Changes in Assets and Liabilities: Increase (-) / Decrease (+) of Inventories 691-9,989-10,680 Increase (-) / Decrease (+) of Trade Receivables 25,465 17,997-7,468 Increase (-) / Decrease (+) of Other Assets ,744-26,864 Increase (+) / Decrease (-) of Trade Payables -25,466-20,221 5,245 Increase (+) / Decrease (-) of Other Provisions -3,484 1,952 5,436 Increase (+) / Decrease (-) of Deferred Income -141, ,706-1,900 Increase (+) / Decrease (-) of Provisions for Pension 2,933 1,651-1,282 Increase (+) / Decrease (-) of Other Liabilities 8,095 4,544-3,551 Cash Provided by Operations 398, ,071 3,402 Income Taxes Paid (-) / Received (+) 1,527-28,858-30,385 Net Cash from Operating Activities 400, ,213-26, Cash Flows from Investing Activities Cash Received from Disposal / Sale of Fixed Assets 941 1, Cash Paid for Investments in Intangible Assets -48,184-56,173-7,989 Cash Paid for Investments in Property and Equipment -177, ,479-48,684 Cash Received (+) / Paid (-) for Acquisitions, Net of Cash Acquired -9,687-9, Interest Received Dividends received from Associates 0 6,673 6,673 Net Cash Used in Investing Activities -233, ,383-49, Cash Flows from Financing Activities Cash Payments to Shareholders for Reacquiring Own Shares 0-60,000-60,000 Cash Payments to Non-Controlling Interests* Cash Received Non-Current Financial Liabilities 240,000 1,070, ,000 Cash Repayments of Current and Non-Current Financial Liabilities -469, , ,874 Cash Payments for Reduction of Finance Lease Liabilities -7,151-7, Interest and Transaction Costs Paid* -142, ,916 23,220 Net Cash Used in Financing Activities -379, , , Cash and Cash Equivalents at the End of the Period Changes in Cash and Cash Equivalents (Subtotal of 1 to 3) -212,839-13, ,002 Cash and Cash Equivalents at the Beginning of the Period 271,345 28, ,010 Cash and Cash Equivalents at the End of the Period 58,506 14,498-44,008 Additonal Information Investments Relating to Finance Lease 4, ,729 * The prior-year's consolidated statement of cash flows for the period from April 1, 2010 to December 31, 2010 has been adjusted in accordance with the retroactive change due to IAS 32 in regard to non-controlling interests. Kabel Deutschland Holding AG Page 13 / 14

14 Footnotes (1) Premium TV consists of RGUs for our Pay TV product (Premium HD, Premium Extra, Komfort Premium HD and various foreign language packages), and our DVR products (Komfort HD and Komfort Premium HD). (2) RGU (Revenue Generating Unit) relates to sources of revenue, which may not always be the same as subscriber numbers. For example, one person may subscribe to two different services, in which case two RGUs would be assigned to that one subscriber. Premium TV RGUs consist of RGUs for our Pay TV product (Premium HD, Premium Extra, Komfort Premium HD and various foreign language packages) as well as our DVR products (Kabel Komfort HD and Kabel Komfort Premium HD). (3) Total blended monthly ARPU per subscriber. is calculated by dividing recurring TV and Internet and Phone subscription revenues (excluding installation fees and other non-recurring revenues) for the relevant period generated in the segments TV Business and Internet and Phone by the sum of the monthly average number of total unique subscribers for that period. (4) Adjusted EBITDA is calculated as profit from ordinary activities before depreciation and amortization, expenses related to LTIP, merger expenses, restructuring items and IPO related expenses. (5) Capital expenditures (Capex) consist of cash paid for investments in intangible assets, property and equipment and do not include cash paid for acquisitions. (6) Total Net Debt is defined as total debt nominal amounts less cash. (7) Internet and Phone Solo subscribers consist of non-basic Cable service customers subscribing to Internet and/or Phone services only. (8) New Services consist of Premium TV as well as Internet and Phone. (9) Basic Cable RGUs: The difference between the number of Basic Cable subscribers and Basic Cable RGUs is due to one additional digital product component Kabel Digital. It is sold directly to the end-customer on top of the analog Basic Cable service, which is provided and billed via a housing association. A customer subscribing to the Kabel Digital product would be counted as one Basic Cable subscriber (analog service via a housing association) and two Basic Cable RGUs (analog service via a housing association and digital service via a direct contract with the end-customer). (10) Total blended monthly TV ARPU per subscriber is calculated by dividing the subscription revenues (excluding installation fees and other non-recurring revenues) resulting from our TV Business products for a period by the sum of the monthly average number of total Basic Cable subscribers for that period. (11) Total blended monthly Internet and Phone ARPU per subscriber is calculated by dividing Internet and Phone subscription revenues (excluding installation fees and other non-recurring revenues) for the relevant period by the sum of the monthly average number of Internet and Phone subscribers of these products for that period. (12) EBITDA margin is a calculation of Adjusted EBITDA as a percentage of total revenues. (13) Homes Passed upgraded for two-way communication being marketed are those homes to which we currently sell our Internet and/or Phone products. Kabel Deutschland Holding AG Page 14 / 14