1&1 AG — Earnings Release 2008

Mar 25, 2009

News Details

Corporate | 25 March 2009 21:10

Drillisch AG: EBITDA rises for the sixth year in succession — write-offs on participations without effect on liquidity, but reduce profits — Drillisch continues to focus on the path of profitable growth

Drillisch AG / Final Results/Final Results

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EBITDA rises for the sixth year in succession — write-offs on
participations without effect on liquidity, but reduce profits — Drillisch
continues to focus on the path of profitable growth

Maintal, 25 March 2009 The wireless services provider Drillisch (ISN DE
0005545503) continued its course of growth in operating profits in fiscal
year 2008. The EBITDA rose for the sixth time in succession. Nevertheless,
the financial crisis, which was not foreseeable in such enormous dimensions
for the Company, has left behind deep tracks in the balance sheet.

While the number of subscribers rose by 7.7% to 2.37 million, the sales
revenues in the Drillisch Group — primarily as a consequence of reduced
prices — declined by about 3.2% to EUR350.1 million. Gross profit remained
unchanged at 20.9%. The EBITDA forecast of EUR40 million was exceeded
slightly and reached EUR40.6 million. In the yearly comparison, the EBITDA
rose by 1.9% over the same figure in 2007; when compared with the previous
year's EBITDA after adjustment for special factors, the growth came to
6.7%.

Owing to the continued fall in stock prices, Drillisch took a write-off of
EUR51.3 million of the strategic participation in freenet AG which did not
affect liquidity. In total, write-offs on participations in fiscal year
2008 amounted to EUR202.4 million. The result before taxes (EBT) was
therefore reduced to -EUR172.4 million. When adjusted by the amount of the
value allowance for the freenet holding, the result before taxes increased
by 8.4% to EUR30.0 million from the EUR27.7 million of the previous year.
The net consolidated result came to -EUR184.1 million after a plus of
EUR24.3 million in the previous year. The operating cash flow reached
EUR42.6 million, an increase of EUR37.2 million in comparison with the
previous year.

The wireless services market in Germany remains in a state of transition.
More and more landline telephones are being jettisoned in favour of mobile
phones. The low prices have already convinced more than four million
households in Germany that they have no further need whatsoever for the
traditional landline connection. Now the Internet is also becoming mobile
on a wide scale.

Drillisch offers fair, flexible and low-price rates to the market. They
also include data flat rates with high transmission speeds. More than 10
million people in Germany are already surfing the Internet with their
mobile phones or laptop computers today. According to estimates, turnover
with mobile data will double to just under five billion euros in the period
from 2008 to 2010.

Drillisch further expanded its market position in 2008. All of the business
units with the relevant sales platforms contributed to the good operating
results. The focus remains on the marketing of online sales platforms.
Drillisch is continuing to develop further these sales platforms and
consistently exploits cross-selling potential. There has been further
development of the distribution channels in retail grocery stores and ITC
specialist shops parallel to the marketing on the Internet.

For 2009 Drillisch is well positioned on the growth markets discount and
'mobile Internet' — with its own brands and with strong sales partners —
and will continue to seize upon all profitable opportunities which present
themselves.

In December 2008, we announced the acquisition of a majority interest in
eteleon e-solutions AG, Munich, for the purpose of strengthening our
e-commerce activities. The transaction was completed on 27 February 2009.
Since that time, we have held 71.4% of the company's stock. eteleon is a
successful and innovative company with strong sales, and we want to use
their capabilities to broaden our common sales activities, expand the
product line and acquire new customers.

In the meantime, the financial crisis has developed into a worldwide
economic crisis. Nonetheless, the management at Drillisch AG believes that
the effects of the economic crisis on the German wireless services market
will be limited. Drillisch will take advantage of the opportunities
presented on this dynamically changing market and stay on its course of
profitable growth.

Drillisch Group Figures Based on IFRS

In EURm 2008 2007
Turnover 350.1 361.5
EBITDA 40.6 39.8
EBITDA margin in % 11.6 11.0
EBITDA (adjusted)1) 40.6 38.0
EBIT 33.9 34.0
EBIT margin in % 9.7 9.4
EBT -172.4 27.7
EBIT (adjusted)2) 30.0 27.7
Consolidated results -184.1 24.3
Profit per share -3.58 0.66
Subscribers (millions) as per 31/12 2.371 2.201

1) Adjusted for income from securities transactions
2) Adjusted for valuation allowances on the freenet participation

The complete report is available for download
http://www.drillisch.de/index.php?page=berichte&group=investor:berichte

Maintal, 25 March 2009

Drillisch AG

The Management Board

Contact:

Oliver Keil
Head of Investor Relations
Mail: ir@drillisch.de

25.03.2009 Financial News transmitted by DGAP

Language: English
Issuer: Drillisch AG
Wilhelm-Röntgen-Straße 1-5
63477 Maintal
Deutschland
Phone: +49 (0)6181 412 200
Fax: +49 (0)6181 412 183
E-mail: ir@drillisch.de
Internet: www.drillisch.de
ISIN: DE0005545503
WKN: 554550
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Stuttgart

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