11 88 0 Solutions AG — Investor Presentation 2012

Aug 2, 2012

Agenda

Financials H1 2012

Data-cost claims: First two claims are now final!*

Claims in the amount of about 47 m€ are now final

• Federal High Court of Justice (BGH) has dismissed the appeals against nonadmission of Deutsche Telekom on July 16th, 2012
• The two claims of Datagate GmbH and telegate Media AG in an amount of total about 47 m€ are thus final
• Cash-in will occur during the days to come

Final decision on further claim close to 50 m€ expected soon

• Decision by Federal High Court of Justice about the appeal against non-admission of Deutsche Telekom in the claim of telegate AG is expected within the coming 3 months
• The claim ist about 41 m€ plus interest, in total close to 50 m€

Damage-claims for further up to 108 m€ in the 1st instance

Oral hearings in 1st instance are scheduled after the summer-break

* According to IAS 37.35 these claims will be accounted for in 07/12

Revenue & EBITDA H1 in line with expectations (continued operations)

Analyst Presentation based on results H1 2012 4

Focus areas 2012

Three key pillars across the company represent the focus of ²⁰¹² consolidation

Traffic and usage growth far above market; strong focus on Mobile

Traffic growth H1 yoy*:

49% from 110m to 164m

Mobile growth **:

203% from 18.1m to 54.8m

Growth of portals:

27% from 77.9m to 98.8m

Number of App-downloads:

60% from 0.96m to 1.54m

* Data on traffic does not include CD-Rom searches

** Mobile traffic includes cooperation agreements

Visible improvement in operational excellence

2010^{2011 2012}

Churn rate development*

• Positive development of actual churn rate: End H1 2012 already -4ppts vs. Dec. 2011
• Further significant improvement very likely thanks to:
• a) Early churn (= churn within the first three months after contract signature) has been reduced during the past 12 months by > 20% or > 3 ppts
• About 40% of all new customers acquired are choosing a 24 month contract duration.

Further improvement by 5ppts expected as of Q4 2012

Structural Cost Base*

• Further 2m€ or -12,5% cost reductions have been realised in H1 2012 vs. H1 2011 in terms of fixed-cost
• On top of that, tight cost-control in the area of variable cost:
• a) Decision to further reduce voice-capacity as of 01/13
• b) Significantly improved sales efficiency and effectiveness results in much better ratio of sales cost vs. Media revenues

* illustrative , Source: telegate AG, 7/12

b)

Agenda

Financials H1 2012

Revenue & EBITDA H1 in line with expectations

(Successful data-cost claims accounted for in Q3 2012 according to IAS 37.35)

€ m	H 1 2 0 1 2	H 1 2 0 1 1	%
Re ve nu es	4 5, 1	5 1, 2	-1 2 %
Re D A lu ion t ve nu es so s	2 7, 7	3 4, 0	-1 9 %
Re Me d ia ve nu es	1 7, 4	1 7, 2	1 %
Gr f i % t os s p ro	5 7, 1 %	5 9, 2 %
Se l l ing d d is i bu ion tr t ts a n c os	1 9, 3	2 1, 6	-1 1 %
Ge l a dm in is ive tra t ne ra ex p en se s	7, 0	6, 5	7 %
E B I T D A /o in f fe ts w n on -re cu rr g e c	5, 1	6, 8	-2 5 %
E B I T D A inc l. n ing f fec ts on -re cu rr e	2, 9	6, 0	-5 2 %
In ( lo ) fro in in io t t co m e ss m co n u g op er a ns	-0 2 ,	2, 2
Inc ( los ) fro d isc inu d o ion t t om e s m on e p era	-0 5 ,	0, 0
( ) Ne In lo t co m e ss	-0 8 ,	2, 2

• Gross profit margin almost maintained(if restated for non-recurring expenses)
• Structural cost-base further optimized: Selling & Distribution as well as G&A-costs further reduced (if restated for non-recurring expenses)

H1 restated for non-recurring items

in k E U R	H 1 2 0 1 2	H 1 2 0 1 1	%
Re ve nu es	4 5. 0 6 5	5 1. 2 3 6	-1 2 %
Co f r * t o s ev en ue s	-1 8. 2 6 4	-2 0. 2 8 9	-1 0 %
Gr f i t os s p ro	2 6. 8 0 1	3 0. 9 4 7	-1 3 %
Gr f i in t % os s p ro	5 9, 5 %	6 0, 4 %
Se l l ing d d is i bu ion * tr t ts a n c os	-1 8. 9 3 4	-2 1. 6 3 9	-1 2 %
Ge l a dm in is ive * tra t ne ra e xp en se s	-6 2 0 7	-6 3 7 2	-3 %
/o in i E B I T D A te w n on -re cu rr g m s	5. 1 3 5	6. 8 0 5	-2 5 %

in i te no n- re cu rr g m s:
in k E U R	H 1 2 0 1 2	H 1 2 0 1 1
Co f r t o s ev en ue s	1. 0 4 7	6 1 0
Se l l ing d d is i bu ion tr t ts a n c os	3 7 5	0
Ge l a dm in is ive tra t ne ra e xp en se s	7 9 7	1 5 3
l to ta	2. 2 1 9	7 6 3

Figures excluding Spain due to Spain being reported as discontinued operations

Sizeable non-recurring items for restructuring have impacted H1 2012

* w/o non-recurring items

Net Cash Flow impacted by declining operating profitability & lower interest income

Operating Cash-flow (m€)

Net Cash Flow* (m€)

• Usually weaker first half-year in terms of cash generationdue to payments related to full year

• YoY operating cash flow development follows profit development

• Net Cash Flow follows declining operating profitability

• Lower interest income (0.3 m€ in H1/12 vs. 0.9 m€ in H1/11) mostly balanced by lower capital expenditures( -1.9 m€ in H1/12 vs. -2.3 m€ in H1/11)

Positive Net Cash Flow* expected for full 2012

* Net Cash Flow: Operating CF + investing CF +/- interest income/expenses

Currently already very healthy Net Financial Position will further increase

Profit- and Cash-Flow guidance for 2012 confirmed, even having discontinued the Spanish business

f i i i P b l t t r o a y	f E B I T D A * l 1 0 1 2 € t t e e g a e g r o u p o m -
C h F l a s o w	P i i N C h F l ** i l l i d 2 0 1 2 2 0 1 3 2 0 1 4 t t o s e e a s o n a s e a s n a n v w w

* w/o non-recurring items, and also excluding Spain-contribution

Contacts and financial calendar

Contact telegate AG

C E O	E l i S h i o c a v o
C F O	R l f G ß h b ü a r a e r
I R l i t t n v e s o r e a o n s	F P W b t r a n z e e r e e r
G l A t t e e g a e	f ß F h 1 2 t r a n o e r s r a e a u 8 2 1 2 M i i d, 5 t a r n s r e G e r m a n y
P h o n e	( ) 4 9 0 8 9- 8 9 5 4- 1 7 5 0 +
F a x	( ) 4 9 0 8 9- 8 9 4- 1 1 0 5 7 +
E i l m a	@ I l i l t t t t n e s o r. r e a o n s e e g a e c o m v
H o m e p a g e	l t t e e g a e c o m w w w

Financial Calendar

A 2 2 0 1 2 t g s u u ,
N b 8 2 0 1 2 o v e m e r ,

6-months results 2012 9-months results 2012

Disclaimer

07/2012

This presentation contains "forward looking statements" regarding telegate Group (telegate), including opinions, estimates and projections regarding telegate's financial position, businessstrategy, plans and objectives of management and future operations. Such forward lookingstatements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of telegate to be materiallydifferent from future results, performance and achievements expressed or implied by suchforward looking statements. These forward looking statements speak only as of the date of this presentation and are based on numerous assumptions which may or may not prove to becorrect.

Whilst all reasonable care has been taken to ensure that the information and facts statedherein are accurate and that the opinions and expectations contained herein are fair andreasonable, no representation or warranty, express or implied, is made by telegate withrespect to fairness, completeness, correctness, reasonableness or accuracy of anyinformation and opinions contained herein. The information in this presentation is subject tochange without ^a prior notice, it may be incomplete or condensed, and it may not contain all material information concerning telegate. telegate undertakes no obligation to publicly updateor revise any forward looking statements or other information stated herein, whether as ^aresult of new information, future events or otherwise.

Backup

Key Data of the Share

ISIN DE0005118806

O d i h t t s a n n g s a r e s u	1 9. 1 1 1. 0 9 1
d i i d d ( i d i ) 2 0 1 1 2 0 1 2 v e n p a n	5 E / h 0. 3 u r o s a r e
5 2 W h i h g	1 3 E 7. u r o
5 2 W l o w	4. 9 2 E r o u
C i i i ( st f ) M k l 3 0 J 2 0 1 2 t t t a r e a p a s a o n o u n e	1 1 1 E m u r o
d 5 W t 2 a v e r a g e u r n o v e r p e r a y	k E 7 1 u r o
T S d d t r a n s p a r e n c y a n a r	P i S d d t r m e a n a r
I d i n c e s	C S S D A X P i A l l h T h l A l l h r m e a r e, e c n o o g a r e y ,
O f f i i l M k t c a a r e	F k f d X t t r a n u r a n e r a
L i i d i C l t q u y a s s	2
M k k t a r e m a e r s	B W I B k a n

Consolidated profit and loss statement

	Qu erl art	Re rt y po		6-m ths rt on re po
in k EUR	Q2 20 12	Q2 20 11	6M 20 12	6M 20 11
Co nti ing tio nu op era ns
Re ve nu es	21 .64 4	25 .36 0	45 5 .06	51 .23 6
Re DA luti ven ues so ons	13. 113	16. 656	27 .69 7	34. 045
Re M edi ven ues a	8.5 31	8.7 04	17. 368	17. 191
Co of st rev enu es	-9. 796	-10 .61 9	-19 .31 1	-20 .89 9
Gr ofi t oss pr	11. 848	14. 74 1	25 .75 4	30 .33 7
Gro rofi t in % ss p	54, 7%	58, 1%	57, 1%	59, 2%
Se llin nd dis trib utio ost g a n c s	-8. 855	-11 .11 9	-19 .30 9	-21 .63 9
Ge al a dm inis tive tra ner ex pen ses	-3. 586	-3. 047	-7. 004	-6. 525
Oth ing in rat er ope co me	0	1	2	1
Oth ing rat er ope ex pen se	-1	-1	-12	-30
/o EB ITD A w ing ef fec ts no n-r ec urr	2.5 15	983	5.1 35	6.8 05
ffec EB ITD A i ncl rrin ts . no n-r ecu g e	1.1 18	272	2.9 17	6.0 44
Fin ial inc anc om e	75	52 1	198	1.0 36
Inc e b efo tax om re	-51 9	1.0 96	-37 1	3.1 80
Inc e t om ax	148	-36 9	131	-96 5
Inc e f nti ing tio om rom co nu op era ns	-37 1	727	-24 0	2.2 15
dis nti ed tio co nu op era ns
Inc e ( los s) fro dis tin ued tio om m con op era ns	-58 8	134	-54 6	-10
Ne t In co me	-95 9	86 1	-78 6	2.2 05
Ea rni sha ( in E ) ng s p er re uro	-0, 05	0, 05	-0, 04	0, 11

Consolidated balance sheet

in k E U R	Ju 3 0, 2 0 1 2 n	Ju 3 0, 2 0 1 1 n	De 3 1, 2 0 1 2 c
As ts se
Ca h a d c h e iva len ts s n as q u	2 9. 0 9 9	2. 9 2 4	3 9. 0 4 8
Tra de iva b le ts a cc ou n rec e	2 9. 4 2 5	3 4. 3 9 5	3 2. 9 8 8
O he t t a ts r c urr en ss e	9. 9 3 2	4 0. 8 9 2	6. 3 1 4
To l c ta t a ts urr en ss e	6 8. 4 5 6	7 8. 1 7 5	7 8. 3 5 0
Ta i b le d in i b le tag ts ng an as se	2 5. 6 7 8	3 1. 6 5 0	2 8. 5 2 7
O he t t a ts r n on -cu rre n ss e	8. 0 5 3	8. 3 2 2	8. 6 2 5
To l n ta t a ts on -c urr en ss e	3 3. 3 1 7	3 9. 9 2 7	3 1 2 7. 5
To ta l As ts se	1 0 2. 1 8 7	1 1 8. 1 4 7	1 1 5. 5 0 2
L ia b i l i ie & S ha ho l de ' e i t ty s re rs q u
Cu l ia b i l i ies t t rre n	4 2. 2 8 7	5 0. 4 0 0	4 7. 4 8 7
No l ia b i l i ies t t n-c urr en	0 2 8 5.	6. 6 1 6	6 6 8 5.
S ha ho l de ' e i ty re rs q u	4. 8 2 5 7	6 1. 1 3 1	6 2. 3 4 7
To l l ia b i l i ie & ha ho l de ' e i ta t ty s s re rs q u	1 0 2. 1 8 7	1 1 8. 1 4 7	1 1 5. 5 0 2

Consolidated cash flow statement

in k E U R	6 M 2 0 1 2	6 M 2 0 1 1
Inc be for inc e t om e e om ax	-4 25	3. 1 4 9
De iat ion & isa ion ort t p rec am	3. 6 6 7	4. 0 1 5
C ha in ing & l ia b i l it ies t ts ng es op era as se	-3. 6 6 3	-3. 77 5
Inc i d e t om ax es p a	-8 4 7	-3. 3 2 8
Ot he ite r ms	-3 2 8	-4 8 5
Ca h u d in ing iv it ies at t s se op er ac	-1. 6 2 3	-3 8 7
Ca ita l e d itu p xp en res	-1. 8 8 2	-2. 25 0
Pro ds fro le f a i la b le for le f ina ia l a ets ce e m sa o va sa nc ss	0	-2 3. 4 9 8
Ne ha in ho f ixe d de it inv ( 3 m hs ) t c rt-t tm ts t ng e s erm p os es en on >	0	-1 1. 0 0 0
Ca h u d in inv ing iv it ies t t s se es ac	-1. 8 8 2	-3 6. 7 4 8
Pu ha f tr ha rc se o ea su ry s res	0	-1 2
D iv i de d p i d n a	-6. 6 9 0	-9. 5 5 5
Int ive d st ere rec e	25 8	8 8 1
Int i d st ere p a	-6	-2 1
Ca h fro f ina ing t iv it ies s m nc ac	-6. 4 3 8	-8. 7 0 7
C ha in h a d c h e iva len ts ng e ca s n as q u	-9. 9 4 5	-4 5. 8 4 4
Ca f r h a d c h e iva len ts at be inn ing ort ing io d s n as q u g o ep p er	3 9. 0 4 8	4 8. 7 6 8
Ca iva f r ing io h a d c h e len ts at d o t d s n as q u en ep or p er	2 9. 1 0 3	2. 9 2 4
Ca h a d c h e iva len ( 3 m hs ), ho f ixe d de it ts t rt-t s n as q u on s erm p os < ( ) for inv tm ts 3 m t hs l l a ho rt-t i la b le le es en on as w e s s erm av a sa > f f re ina ia l a he d o ing io d ets at t ort nc ss en p p er	2 9. 1 0 3	3 7. 4 27

Thank you for your attention!

telegate AGFraunhoferstr. 12 a82152 Martinsried bei München

Telefon 089/8954-0Fax 089/8954-1010

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