DGAP-News: freenet AG / Key word(s): Final Results freenet AG confirms preliminary figures for financial year 2016 23.03.2017 / 08:46 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- freenet AG confirms preliminary figures for financial year 2016 - 7.8 percent increase in Group revenue to 3.362 billion euros (previous year: 3.118 billion euros) - Significant growth of 18.5 percent in Group EBITDA1 to 438.8 million euros (previous year: 370.2 million euros) - 20.0 percent increase in free cash flow2 to 341.5 million euros (previous year: 284.5 million euros) - Dividend proposal of 1.60 euros (previous year: 1.55 euros) for financial year 2016 - Details concerning TV business and guidance to be disclosed on the capital market day in Cologne scheduled for 12 April 2017 Büdelsdorf, 23 March 2017 - Following verification of the annual financial statements of freenet AG [ISIN DE000A0Z2ZZ5] as at 31 December 2016 and approval of the consolidated financial statements as at 31 December 2016 by the Supervisory Board, the Executive Board has confirmed the preliminary figures already announced on 02 March 2017 in full. According to this, the company reached respectively exceeded all targets communicated for financial year 2016. Group revenue increased by 7.8 percent of 3.362 billion euros (previous year: 3.118 billion euros). Based on a solid Mobile Communications core business the rise is essentially due to the revenue contribution of the newly created TV and Media segment amounting to 218.9 million euros, as well as increased revenue from the sale of hardware and high-value digital lifestyle products. The Group EBITDA increased significantly, by 18.5 percent to 438.8 million euros (previous year: 370.2 million euros). Of this amount, 28.0 million euros came from the TV and Media segment and 36.5 million euros from the equity interest of the freenet AG in the Sunrise Communications Group AG. The gross profit increased by 13.7 percent to 898.7 million euros (previous year: 790.4 million euros). After accounting for the interest result in the amount of -54.9 million euros (previous year: -44.1 million euros) and deducting the income tax charges in the amount of 27.5 million euros (previous year: 33.2 million euros), the company achieved a Group result of 216.4 million euros, equivalent to earnings per share of 1.78 euros (previous year: 1.73 euros). Net financial debt3 per 31 December 2016 increased to 725.8 million euros (previous year: 369.2 million euros). This resulted in a debt ratio4 of 1.7 (previous year: 1.0) on the balance sheet date, which is within the strategic bandwidth of 1.0 to 2.5, as it was also in the previous year. The free cash flow in the reporting period was 341.5 million euros (previous year: 284.5 million euros), corresponding to a 20.0 percent increase. The projected amount of 300.0 million euros was therefore exceeded, even after taking out the dividend payment in the amount of 30.1 million euros received from the Sunrise Communications Group AG. The Executive Board and the Supervisory Board resolved to propose a dividend of 1.60 euros per dividend-bearing no par-value share for financial year 2016 to the annual general meeting that will take place on 1 June 2017 in Hamburg. This corresponds to a pay-out ratio of approximately 60 percent of the free cash flow generated in financial year 2016. In this context the Management confirms its existing dividend policy, which provides for a dividend distribution to its shareholders of 50 to 75 percent of the free cash flow generated for the year. On 12 April 2017 a capital market day for analysts and investors will take place in Cologne, Germany, where the Executive Board will present figures and details concerning the TV business after the official start of DVB-T2 and communicate the guidance for financial year 2017. The complete annual report 2016 can be downloaded at www.freenet-group.de/investor. 1) Group result before interest, taxes on income, depreciation and impairment write-downs, including shares of associates accounted for using the equity method, excluding depreciation and deferred taxes from the subsequent accounting regarding shadow purchase price allocation (element of the result of associates accounted for using the equity method). 2) Free cash flow (FCF) is defined as cash flow from operating activities minus investments in property, plant and equipment and intangible assets, plus proceeds from the disposal of property, plant and equipment and intangible assets. 3) Financial debt less liquid funds, less the share of market value of Sunrise Communications Group AG (Source stock data: Bloomberg) 4) Ratio of the financial debt less liquid funds, less the share of market value of Sunrise Communications Group AG (Source stock data: Bloomberg) to the Group EBITDA obtained in the last 12 months. --------------------------------------------------------------------------- 23.03.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: freenet AG Hollerstraße 126 24782 Büdelsdorf Germany Phone: +49 (0)40 51306-778 Fax: +49 (0)40 51306-970 E-mail: [email protected] Internet: www.freenet-group.de ISIN: DE000A0Z2ZZ5, DE000A1KQXU0 WKN: A0Z2ZZ , A1KQXU Indices: TecDAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 557167 23.03.2017