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1&1 AG — Interim / Quarterly Report 2017
Aug 9, 2017
1_10-q_2017-08-09_0824d943-9e11-4cc8-91a7-2f0e70e86885.pdf
Interim / Quarterly Report
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Report on First Half-year 2017
BEST OFFERS FOR GERMAN MOBILE MARKET
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DRILLISCH AG PREMIUM BRANDS
www.smartmobil.de www.yourfone.de
4 DATA AND FACTS
INDEX
5 TO OUR SHAREHOLDERS
5 Letter from the Management Board
8 COMMERCIAL DEVELOPMENT OF THE DRILLISCH GROUP AS PER 30 JUNE 2017
- 9 Group Companies
- 11 The Wireless Services Market
- 15 Turnover and Earnings Position
- 18 Assets, Liabilities and Financial Position
- 20 Opportunities and Risk Report of the Future Business Development
- 20 Important events occurring after 30 June 2017 | Outlook
21 ABRIDGED CONSOLIDATED INTERIM ACCOUNTS PER 30 JUNE 2017
- 22 Consolidated Comprehensive Income Statement
- 23 Consolidated Balance Sheet
- 25 Consolidated Statement of Change in Capital
- 26 Consolidated Cash Flow Statement
- 27 Abridged Consolidated Notes
34 AFFIRMATION STATEMENT OF THE LEGAL REPRESENTATIVES
35 INVESTOR RELATIONS CORNER
- 36 Financial Calendar | Current Analyst Assessments
- 37 Share Price Development | Director's Holdings
- 38 Shareholder Structure
39 SERVICE CORNER
- 40 Publications | Contacts | Information and Order Service
- 41 Editorial Information
- 42 Drillisch AG Brands the Choice is Yours!
DATA AND FACTS
| Key Indicators of the Drillisch-Group | H1/2017 | H1/2016 | II/2017 | I/2017 | IV/2016 | III/2016 |
|---|---|---|---|---|---|---|
| Income Statement | ||||||
| Revenue in €m | 311.3 | 341.3 | 158.4 | 152.9 | 187.9 | 180.9 |
| Service Revenues (total) in €m | 307.8 | 261.6 | 156.6 | 151.1 | 146.9 | 142.9 |
| MBA Service revenues in €m Gross1 | 279.6 | 196.0 | 144.6 | 134.9 | 128.9 | 120.4 |
| MBA Service revenues in €m Net2 | 233.3 | 172.3 | 120.4 | 112.8 | 108.3 | 103.0 |
| Gross profi t in €m | 145.8 | 137.1 | 73.6 | 72.1 | 73.2 | 68.6 |
| Gross profi t in % of revenue | 46.8 | 40.2 | 46.5 | 47.2 | 39.0 | 37.9 |
| EBITDA in €m | 72.3 | 51.1 | 37.2 | 35.1 | 37.5 | 31.6 |
| EBITDA in €m - adjusted* | 74.0 | 51.1 | 38.9 | 35.1 | 37.5 | 31.6 |
| EBITDA margin in % of revenue | 23.2 | 15.0 | 23.5 | 23.0 | 20.0 | 17.5 |
| EBITDA margin in % of revenue - adjusted* | 23.8 | 15.0 | 24.6 | 23.0 | 20.0 | 17.5 |
| Depreciation excluding goodwill in €m | 29.7 | 24.5 | 15.3 | 14.5 | 15.6 | 12.1 |
| EBIT in €m | 42.5 | 26.6 | 21.9 | 20.6 | 12.7 | 19.4 |
| EBIT in €m - adjusted* | 44.3 | 26.6 | 23.7 | 20.6 | 21.9 | 19.4 |
| EBIT margin in % of revenue | 13.7 | 7.8 | 13.8 | 13.5 | 6.8 | 10.7 |
| EBIT margin % of revenue - adjusted* | 14.2 | 7.8 | 14.9 | 13.5 | 11.7 | 10.7 |
| EBT in €m | 33.5 | 24.8 | 13.7 | 19.7 | 12.1 | 18.6 |
| EBT in €m - adjusted** | 42.7 | 24.8 | 23.0 | 19.7 | 21.3 | 18.6 |
| EBT margin in % of revenue | 10.8 | 7.3 | 8.7 | 12.9 | 6.4 | 10.3 |
| EBT margin in % of revenue - adjusted** | 13.7 | 7.3 | 14.5 | 12.9 | 11.3 | 10.3 |
| Consolidated profi ts in €m | 22.8 | 17.2 | 9.1 | 13.7 | -3.9 | 13.1 |
| Consolidated profi ts in €m - adjusted*** | 29.0 | 17.2 | 15.3 | 13.7 | 14.8 | 13.1 |
| Consolidated profi t margin in % of revenue | 7.3 | 5.0 | 5.7 | 9.0 | -2.1 | 7.3 |
| Consolidated profi t margin in % of revenue - adjusted*** | 9.3 | 5.0 | 9.7 | 9.0 | 7.9 | 7.3 |
| Profi t/loss per share in € | 0.39 | 0.31 | 0.14 | 0.25 | -0.07 | 0.24 |
| Profi t/loss per share in € - adjusted*** | 0.50 | 0.31 | 0.25 | 0.25 | 0.28 | 0.24 |
| Cash fl ow | ||||||
| Cash fl ow from current business operations in €m | 43.2 | 61.5 | 30.4 | 12.8 | 22.5 | -3.6 |
| Cash fl ow from investment activities in €m | -8.7 | -3.3 | -3.3 | -5.4 | -1.3 | -19.9 |
| Cash fl ow from fi nancing activities in €m | -104.3 | -86.8 | -103.8 | -0.4 | 0.5 | -0.4 |
| Cash in €m | 23.1 | 94.9 | 23.1 | 99.8 | 92.8 | 71.1 |
| Balance Sheet | ||||||
| Balance sheet total in €m | 953.2 | 611.7 | 953.2 | 582.2 | 595.2 | 582.6 |
| Equity in €m | 754.3 | 274.4 | 754.3 | 298.7 | 283.4 | 287.5 |
| Equity ratio (equity as % of balance sheet total) | 79.1 | 44.9 | 79.1 | 51.3 | 47.6 | 49.3 |
| Debenture bonds in €m | 3.1 | 92.8 | 3.1 | 93.3 | 94.2 | 93.5 |
| Financial liabilities in €m | 50.1 | 50.1 | 50.1 | 50.0 | 50.0 | 50.0 |
| Employees | ||||||
| Size of staff , annual average (incl. Management Board) | 876 | 923 | 876 | 898 | 916 | 918 |
| Wireless Services Subscribers (30/06/2017) (in Thousands) | 3,771 | 3,003 | 3,771 | 3,615 | 3,430 | 3,214 |
| Thereof MVNO subscribers | 3,707 | 2,922 | 3,707 | 3,548 | 3,359 | 3,138 |
| Thereof budget subscribers | 3,243 | 2,338 | 3,243 | 3,068 | 2,863 | 2,600 |
| Thereof volume subscribers | 464 | 584 | 464 | 480 | 496 | 538 |
| Revenue per MBA subscriber | ||||||
| MBA ARPU Gross3 | 14.62 | 14.76 | 14.71 | 14.54 | 15.02 | 15.44 |
| MBA ARPU Net4 | 12.20 | 12.98 | 12.25 | 12.16 | 12.63 | 13.22 |
In Q II 2017 adjusted for professional expenses arising from the acquisition of 1&1 Telecommunication SE. In Q IV 2016 adjusted for the eff ects of the restructuring of Phone House and the sale of the network operator business. ** In Q II 2017 adjusted for professional expenses arising from the acquisition of 1&1 Telecommunication SE as well as expenses arising from cash settlements paid to bond creditors in the context of conversions of convertible bonds. In Q IV 2016 adjusted for the eff ects of the restructuring of Phone House and the sale of the network operator business.
*** In Q II 2017 adjusted for professional expenses arising from the acquisition of 1&1 Telecommunication SE as well as expenses arising from cash settlements paid to bond creditors in the context of conversions of convertible bonds and the tax eff ects arising from these adjustments. In Q IV 2016 adjusted for the eff ects of the restructuring of Phone House and the sale of the network operator business.
1 MBA service revenue in €m, gross before customer benefi ts
2 MBA service revenue in €m, net after deduction of customer benefi ts
3 MBA ARPU, gross before customer benefi ts
4 MBA ARPU, net after deduction of customer benefi ts
4
Letter from the Management Board
Vlasios Choulidis André Driesen Executive-Board, Director of SalesDirector of Finances
Dear Sir or Madam,
The fi rst half of 2017 was highly successful. We were again able to sustain the course of growth that we are pursuing in our core business activities, as is evident particularly in the dynamic increase in the number of MVNO subscriber and in service revenues, as well as in the substantial increase in EBITDA that was adjusted for the one-off expenditure arising from the acquisition of the shareholding in 1&1 Telecommunication SE ("1&1).
In addition to our operating activities, we have spent the past few months paying very close attention to the acquisition of 1&1 and, in May, to the fi rst 7.75% of that company to be acquired by way of a non-cash capital increase. Our objective is to press ahead to occupy the position of strong fourth power in the German telecommunication market and exploit the potential of the MBA MVNO contract even more eff ectively than before. On 25 July 2017, our shareholders granted us a clear and convincing mandate to do just that and we have initiated a second non-cash capital increase in order to acquire the remaining 92.25% of 1&1. When we complete the full acquisition, which we intend to do by the end of 2017, we will be ideally placed to serve a dynamically growing proportion of the network capacities provided by similarly dynamic, fast-growing demand for wireless products with our guaranteed and very long-term access – always in conformity with the respective state of the art. United Internet, our largest individual shareholder so far, will retain a 73.11% stake in Drillisch AG after the transaction has been completed.
In conjunction with 1&1, Drillisch will be able to off er its customers not only wireless products pure and simple, but also bundled products featuring wireless, landline,TV and further content as a one-stop shop which, according to the German Federal Network Agency's annual report, have developed into "standard off erings from the companies".
As early as the beginning of July, a sales collaboration between yourfone and 1&1 was launched. Within the framework of this arrangement, yourfone has expanded its spectrum with 1&1 DSL and landline products and, in more than 200 shops, now off ers not only products for wireless services but also the most suitable connections for home use.
Development of the Mobile Market:
The demand for our wireless services is growing continuously. According to the annual report published by the Federal Network Agency in May 2017, the data volume transmitted in the wireless networks almost doubled from 575 million gigabytes in 2015 to 918 million gigabytes in 2016.
Letter from the Management Board
And there is no sign of this dynamic growth coming to an end. According to the 11th Visual Networking Index (VNI) from Cisco from February 2017, mobile data traffi c in Germany is going to increase sixfold in the next fi ve years. This corresponds to an average annual growth rate of 41 per cent up until 2021. The average user is expected to consume 5 GB in 2021 (2016: 1 GB per month).
Drillisch is reacting to this development and is continuously restructuring its tariff portfolio while adjusting it to customer requirements. Our position as an MBA MVNO allows us to profi tably off er innovative individual wireless products geared towards off er our customers' needs that are every bit as good as the network operators' tariff s in respect of technology and performance.
Our brands excel not only with outstanding value for money, but also with excellent service. simply, for example, achieved second place in the "wireless services provider" category in the trade journal Connect's 2017 readers' poll and convinces with high customer satisfaction as well as excellent value for money.
Now for the operational side of the business:
In the fi rst half of 2017 we managed to generate considerable growth compared to the previous year in a still fi ercely competitive market environment. In the process, the positive trend in the fi rst quarter continued into the second quarter with regard to key indicators such as gross profi ts and EBITDA as well as the growth in participant numbers.
With the customer portfolio showing a very pleasing overall trend compared to the same period last year in all customer groups and the aggregate fi gure of all these groups increasing by 25.6% or 768 thousand to 3.771 million participants (H1-2016: 3.003 million), we must again emphasise the dynamic growth of the budget customer segment. While we have generated an overall increase of 785 thousand participants or 26.9% to 3.707 million among MVNO customers over the past 12 months (H1-2016: 2.922 million), the number of our higher-quality budget participants has even increased by 38.7% or 905 thousand participants to 3.243 million participants (H1- 2016: 2.338 million) and was therefore again the driver of our profi table growth.
With service revenues increasing sharply by 46.2 million euros or 17.7% to 307.8 million euros (H1-2016: 261.6 million euros), we generated gross profi ts in the fi rst half of 2017 which, at 145.8 million euros, exceeded last year's comparable fi gure by 6.3% or 8.7 million euros respectively. (H1-2016: 137.1 million euros). Gross profi t margin took advantage of the discontinuance of the low margin distribution business of The Phone House and increased by 6.6 percentage points to 46.8% (H1-2016: 40.2%).
In the fi rst half of the year, against a backdrop of growth in customer numbers, direct customer acquisition costs, e.g. in the form of commissions, one-off or time-limited price discounts and MNP boni, have increased considerably, which is having at the start an initial negative impact on gross profi ts.
Consolidated EBITDA (earnings before interest, taxes, depreciation and amortisation), adjusted for advisory costs in connection with the acquisition of 1&1 amounting to some 1.8 million euros, increased in the fi rst half of the year by 22.9 million euros or 44.9% or to 74.0
Letter from the Management Board
million euros (H1-2016: 51.1 million euros). This means that we are heading for growth during the course of the year in accordance with our plan for the year as a whole. The adjusted EBITDA margin increased by 8.8 percentage points to 23.8% (H1-2016: 15.0%).
Advertising costs decreased by 10.2 million euros to 12.2 million euros (H1-2016: 22.4 million euros). This development, however, is off set by the aforementioned signifi cant increase in direct customer acquisition costs that were already a burden on gross profi ts – with the result that ultimately, we invested more money in growing our customer numbers.
In the fi rst half of 2017, cash fl ow from operating activities totalled 43.2 million euros (H1-2016: 61.5 million euros). In the second quarter of 2017 alone, operating cash fl ow amounted to 30.4 million euros (Q1-2017: 12.8 million euros). Operating cash fl ow in the fi rst half of 2016 was infl uenced by balancesheet-date eff ects and the shifting of periods, with the result that any comparability in the operating cash fl ow in H1-2017 and H1-2016 respectively is very limited.
This ability to generate positive payment fl ows sustainably, the available net liquidity that still amounted to some 23.1 million euros as at the cut-off date even after the distribution of the dividends totalling 98.6 million euros in May 2017, and the further attractive fi nancing possibilities give us the fl exibility to expand and augment our business sensibly going forward and to take any opportunities that arise.
Following the successful start to the new fi scal year 2017, we are facing the future with confi dence. We are confi rming our forecast and still anticipate that the fi scal year 2017 (stand alone without 1&1) will see EBITDA increase to between 160 and 170 million euros. For the fi scal year 2018 we are planning for a further increase in profi tability in a consequently larger unit with our new subsidiary 1&1.
On 18 May 2017, we distributed a dividend for 2016 in the amount of 1.80 per share. In the interests of a corporate policy based on sustainability, we intend in future as well to give our shareholders an appropriate stake in our company's success.
In conclusion, we would like to take this opportunity to thank our employees explicitly and cordially for their sustained commitment and their high level of motivation, as trusting and dependable collaboration is very important for commercial success. In addition to that, we thank our shareholders, customers and business partners equally warmly for the trust that they place in us.
Best regards from Maintal
Vlasios Choulidis André Driesen
7
COMMERCIAL DEVELOPMENT OF THE DRILLISCH GROUP AS PER 30 JUNE 2017
- 9 Group Companies
- 11 The Wireless Services Market
- 15 Turnover and Earnings Position
- 18 Assets, Liabilities and Financial Position
- 20 Opportunities and Risk Report of the Future Business Development
- 20 Important events occurring after 30 June 2017 | Outlook
Group Companies
Drillisch AG – successful fi rst half of 2017
Drillisch Group
Drillisch AG, Maintal, along with its subsidiaries (collectively: "Drillisch") is a mobile services provider and virtual network operator operating exclusively in Germany with guaranteed access to a specifi c share of the network capacity of Telefónica in Germany (a so-called mobile bitstream access mobile virtual network operator = MBA MVNO).
One of the most profi table and innovative providers of rate plans for voice and data communications in Germany, Drillisch is a regular source of new pioneering ideas on the German mobile services market. Operating as an MBA MVNO, Drillisch compiles packages of fl exible services based on its own product ideas, drawing on standardised and unbundled advance services from the network operators Telefónica Germany GmbH & Co. OHG ("Telefónica") and Vodafone GmbH ("Vodafone"). The most important sales channels are the internet, the fi rm's own shop channel operating under the brand name yourfone and a network of independent distributors and cooperation partners. Drillisch expects the continuation of its successful corporate development in fi scal year 2017.
Drillisch becomes the fourth powerhouse of the German telecommunications industry
On 12 May 2017, the management board of Drillisch Aktiengesellschaft ("Drillisch") and the management board of United Internet AG ("United Internet") concluded an agreement in principle (business combination agreement) regarding the step-by-step acquisition of 1&1 Telecommunication SE ("1&1"), Montabaur, by Drillisch under the United Internet umbrella. The transaction represents the intent of the two companies to merge the mobile and landline network business of United Internet bundled in 1&1 with the mobile network business of Drillisch. Drillisch's acquisition of 1&1 is to be carried out in two steps.
In the fi rst step (eff ective as per 16 May 2017), United Internet contributed about 7.75% of its holdings in 1&1 to Drillisch in the form of a non-cash capital increase and in return received 9,062,169 new shares of Drillisch stock.
On 25 July 2017, the Drillisch AG shareholders held an extraordinary general meeting and adopted a resolution agreeing to a second, signifi cantly larger non-cash capital increase, the second step to the complete acquisition of 1&1. This acquisition makes Drillisch the fourth powerhouse of the German telecommunications industry. The number of subscriber contracts will quadruple, the revenues will in future approximately quintuple and the EBITDA will rise by almost half a billion euro.
The resulting synergies are signifi cant; according to the latest estimates, they will annually amount to about €150 million from the year 2020 and to about €250 million from the year 2025. These savings will accrue in full to the future Drillisch Group that has been expanded by the addition of 1&1. On the other hand there are expected one-off implementation costs of c. €50 million. The integration of 1&1 will enable Drillisch to exploit the opportunities of the MBA MVNO contract even more fully. This is why Drillisch wishes to continue to give all shareholders a share in the Company's success in future as well by pursuing an attractive dividend policy.
Drillisch – sole MBA MVNO on the German mobile market
Pursuant to the MBA MVNO agreement concluded with Telefónica in June 2014, Drillisch (as the only competitor on the German mobile market) has guaranteed access to up to 30% of the utilised network capacity of Telefónica available on the Telefónica networks subsequent to the merger with E-Plus. This right ap-
Group Companies
plies to all future as well as current technologies. At the same time, Drillisch obtains access rights to the so-called "Golden Grid Network" of Telefónica that has been created by the merger. This means access to the enhanced footprint of the mobile network of Telefónica, including all necessary technical specifi cations and the technical capability to reduce speed and restrict transport in the event of excessive data utilisation by end customers.
In accordance with the agreement, there are also the following options: (1) becoming a socalled full MVNO on the Telefónica mobile networks, that is, a mobile provider that operates its own full core network and uses solely the Telefónica access network ("Full MVNO"), and/ or (2) becoming a licensed mobile network operator ("MNO").
Change in the Group structure
With the merger of the previously independently operating subsidiaries yourfone AG ("yourfone"), Maintal, and GTCom GmbH, Düsseldorf, completed at the end of June 2017, Drillisch bundled competencies and further optimised its processes and structures.
Drillisch AG Is the Group's holding
Within Drillisch Group, Drillisch AG, the parent company, concentrates on holding tasks such as management, fi nances and accounting, controlling, cash management, human resources, risk management, corporate communications and investor relations along with the defi nition, management and monitoring of the global corporate strategy.
Drillisch Online AG
Drillisch Online AG is in charge of the mobile services business operations in the segment Online and operates all of the established online brands of the Group such as smartmobil. de, maXXim, sim.de, winSIM, DeutschlandSIM or simply.
yourfone AG
yourfone AG operates under its brand name and is responsible for the full range of offl ine sales. The company's wholly-owned subsidiaries, yourfone Retail AG and yourfone Shop GmbH (registered offi ces of both in Düsseldorf), have been in charge of shop operations since July 2015. During this time, yourfone has opened a total of more than 250 of its own and partner shops. 204 of them were still operating per 30 June 2017.
Drillisch Logistik GmbH
Drillisch Logistik GmbH (previously The Phone House Deutschland GmbH) is a subsidiary of Drillisch AG supporting both yourfone partner shops as well as yourfone's own shops; it is in charge of the provision of all hardware for online and offl ine sales. In the same period of the previous year, the wholly-owned subsidiary of Drillisch Logistik GmbH, The Phone House Telecom GmbH, essentially sold original products of network operators as well as the Group's own yourfone rate plans.
IQ-optimize Software AG is the IT service provider for the Group
The IT competence of Drillisch Group is bundled in the subsidiary IQ-optimize. This company provides virtually all of the IT services for the Group's mobile services providers.
Segment Online
Drillisch Online AG and its broad range of established online brands are in charge of the mobile services business operations in the segment Online. Drillisch Online AG and its brands off er high-performance LTE rate plans tailored to match customer needs in Germany's largest mobile services network. Every customer will fi nd the combination of unlimited calls and texts along with various data packages at maximum speed of up to 225
Mbit/s in the current rate plan portfolio that is just right for him or her. Customers can go to the online shops and select from a broad range of the latest smartphones the device that will best serve their purposes along with matching accessories.
Segment Offl ine
yourfone AG operates under its brand name and is responsible for the full range of offl ine sales. Its two subsidiaries yourfone Retail AG and yourfone Shop GmbH have been handling shop operations since July 2015. Drillisch has been operating at top locations in bustling pedestrian zones and shopping centres under the name of yourfone, the premium brand for the segment Offl ine, since the middle of 2015. The rate plans, tailored to meet the individual's needs, are also available in combination with the latest top-of-the-line smartphones. The attractive rate plans off ered in the shops stand out for their extraordinarily good value for money.
The Drillisch AG subsidiary Drillisch Logistik GmbH provides service and products to both the yourfone partner shops and yourfone's own shops.
Employees
In the fi rst six months of 2017, Drillisch Group had an average headcount of 876 employees, including the two members of the Management Board (last year: 923). The number of vocational trainees, who are not included in the above fi gure, was 54 (last year: 47).
The mobile market
The mobile market in Germany continues to grow dynamically. According to the annual report issued by the Federal Network Agency (May 2017), the data volume transmitted in mobile networks almost doubled from 575 million gigabytes in 2015 to 918 million gigabytes in 2016. The number of SIM cards in operation at the end of 2016 as announced by the network operators came to 129.9 million (2015: 113.8 million SIM cards). A share of 7.7 million of the SIM cards in operation was used for data communication between machines (M2M) (end of 2015: 4.9 million SIM cards). The number of active SIM cards using LTE grew to about 39 million by the end of 2016 (end of 2015: 27 million), an increase of 44%.
An end to this dynamic growth is not in sight. According to a study published by the technology provider Cisco in February 2017, mobile data traffi c in Germany will sextuple in the next fi ve years, corresponding to annual growth of 41%. The Ericsson Mobility Report that appeared in June of this year confi rms the Cisco predictions. The monthly data volume transmitted during smartphone use in Western Europe is projected to increase from 2.7 gigabytes to 22 gigabytes in 2022, corresponding to an increase of 42% annually. The Ericsson Mobility Report notes that three-fourths of the mobile data traffi c will be used for videos. A study conducted by the UAS Fresenius and the Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste indicates that 33% of the streamed music and 23% of the transmitted videos are even today being used on smartphones. This study concludes that users who make intense use of streaming services are signifi cantly more willing to pay for a fast and stable mobile internet connection as well as for suffi ciently available data volume.
The Internet of Things (IoT) is growing in importance as well, however. Cisco expects mobile data traffi c between machines to increase by a factor of twelve by the year 2021, an annual growth rate of 66%. Even though current projections show that LTE will remain the dominant mobile network standard until 2022, a statement by the Federal Ministry for Transport and Infrastructure notes that the
conditions for real-time communication will decisively improve with the introduction of the next mobile generation 5G. 5G will provide data capacities that are many times higher and extremely short latency periods; it will more comprehensively meet future demands for communication in a completely interconnected society than has ever been possible before. This means that 5G will create a crucial foundation for new applications in intelligent mobility and the Internet of Things as a whole. The development of the technology of tomorrow and the preparation of the required standards are already moving ahead at full speed.
Thanks to the model of the MBA MVNO unique in Europe that assures Drillisch of up to 30% of the network capacities of Telefónica Germany, Drillisch is in an excellent position to take full advantage of the ongoing strong growth in mobile data traffi c. Moreover, Drillisch will be able to use all future technologies just like the network operator itself.
Now that the Drillisch AG shareholders have given their approval to Capital Increase II (during the extraordinary general meeting on 25 July 2017), the process for the complete acquisition of 1&1 is almost fi nished – solely the registration in the Commercial Register is still required. The acquisition of 1&1 will enable Drillisch to off er to its customers bundled products as well as mobile-only products in future. These bundled products (i.e. landline, TV and mobile products from a single source) have turned into the "standard products offered by companies", notes the annual report of the Federal Network Agency. This is also refl ected in the growth in broadband business. The Federal Network Agency notes in its Annual Report 2016 that there has been an increase in monthly data volume per subscriber to 60 GB (2015: 47 GB per subscriber per month).
Innovative and transparent mobile products
Drillisch continues to set standards on the German mobile market. A business model of an MBA MVNO, unique in Europe, that guarantees access to the core network of Telefónica Germany and its latest future technologies (among others) gives Drillisch unique prospects for growth. A powerful rate plan portfolio that integrates the specifi c wishes of its clientele (about 3.8 million subscribers) plus award-winning customer service and qualifi ed, motivated employees are and will remain major pillars of the Company's commercial success.
Customer-friendly rate plans with Europe packages
The new EU roaming regulations went into effect on 15 June 2017. Provided that customers do not make unreasonable use of the services, providers are no longer permitted to bill extra charges for roaming services within the EU. Drillisch off ers its customers a choice. In addition to these so-called regulated mobile rate plans, Drillisch sets itself apart from the competition with alternative roaming rate plans. These alternative plans include a Europe package that allows the use of services in countries in which the new EU roaming regulation does not apply. First and foremost of these countries is the popular transit and holiday country Switzerland. The data volume included in the Europe package is provided in addition to the volume that is usable within Germany. Besides the additional data volume, these rate plans always include all phone calls and texts within the EU and to Germany if they
are also elements of the rate plan package in Germany. By off ering these alternative roaming plans, Drillisch provides a sensible option to the users of its brands.
Drillisch is the fi rst (and, so far, the only) mobile services provider in Germany to off er extremely attractive rate plans for use strictly in Germany to all mobile services customers who do not travel abroad or who do not want to utilise mobile networks for surfi ng when abroad. By off ering these new national rate plans, Drillisch provides a product that is perfectly tailored to the individual's needs and once again sets itself apart from the competition in a positive sense.
All-net fl at rates and data rate plans at smartmobil.de with more data volume
As of 1 June 2017, the all-net fl at rates of the online premium brand smartmobil.de have provided up to 80% more data volume. Customers can choose among 2, 4 and 8 GB of LTE data volume. All of the rate plans include as well unlimited calls and texts to all German landline and mobile networks. Along with unlimited calls and texts to Germany and in other European countries, the Europe package contained in each plan includes extra data volume for use in other EU countries as well as in further travel destinations such as Switzerland, Iceland, Andorra, Gibraltar or the Isle of Man.
smartmobil.de: Second round of the campaign featuring Lukas Podolski endorsement takes off
After its successful launch at the beginning of the year, the smartmobil.de campaign featuring the Lukas Podolski endorsement is taking off for its second round with the theme of "Changing Clubs". In the TV commercial, Lukas Podolski demands a change of clubs after the data volume of the two protagonists is fully
consumed in the middle of a thrilling football video. The wide-area campaign could be seen on far-reaching TV channels, on posters, in print advertisements, online and on social media.
yourfone the price leader in German pedestrian zones and shopping centres
yourfone and its rate plans are the price leaders in the segment Offl ine. yourfone off ers an all-net fl at rate with 1 GB of LTE data volume and Europe package starting at €7.99 (€9.99 from the 13th month). It includes unlimited
calls and texts within Germany as well as in the other 27 EU countries and Switzerland. In addition, 300 MB of data volume is available for surfi ng when abroad (in a total of 43 countries, including Switzerland and Andorra). In
addition to unlimited calls and texts, yourfone off ers 5 GB of data volume at speeds up to 225 MBit/s for use within Germany and 1 GB data volume for surfi ng abroad (in a total of 43 countries, including Switzerland and Andorra), all for €14.99 (€24.99 from the 13th month). The yourfone portfolio includes national rate plans for all customers who do not travel abroad or who do not want to use their smartphones on the mobile networks in other countries. Attractive options such as the information service of BILDplus, music streaming from Napster or TV streaming from Zattoo off er additional added value on top, and customers can add them to their plan at any time in their personal service world.
yourfone launches sales cooperation with 1&1
yourfone, the wholly-owned subsidiary of Drillisch AG, and 1&1, a subsidiary of United Internet AG, launched a sales cooperation on 1 July. Within the framework of this cooperation, yourfone is expanding its portfolio by including 1&1 DSL and landline products and is now off ering suitable connections for home along with its own products for mobile communications in more than 200 yourfone shops.
simply climbs the winner's podium several times
The Drillisch brand simply regularly receives awards for off ering such great value for the money. The high favour enjoyed by simply among consumers is evidenced by its outstanding placement in the readers' poll conducted by the journal connect in 2017. More than 57,000 participants cast their votes for their favourites in the categories networks, products and services. Out of a total of 18 mobile brands, simply took 2nd place in the category "Mobile Services Providers". simply scored points with its outstanding value for money and the high level of customer satisfaction.
simply received yet another award from the Deutsches Institut für Service-Qualität (DISQ). The Drillisch brand was yet again crowned "Germany's Savings Champion" in the category Mobile Services Providers. The procedure used to determine the winners is not limited to a one-time price comparison; the price levels are observed and analysed over a period of several years.
As part of a special campaign, simply off ered the largest all-net fl at rate in its portfolio at a permanently very attractive price of €24.99 a month (regular price €34.99). Moreover, the LTE data volume was increased by 50% from 10 GB to 15 GB. The regular maximum speed of up to 50 MBit/s was raised to what is currently the highest possible speed of up to 225 MBit/s. Thanks to the included Europe package, it is possible to use 1 GB of data in the 43 countries of World Zones 1 and 2, and this is not deducted from the domestic data volume. These 43 countries also include states in which the EU roaming regulation does not apply, such as Switzerland, Andorra or the Channel Islands Guernsey and Jersey, as well as the Isle of Man. The Europe package also includes unlimited calls and texts in the holiday destination and to Germany.
Turnover and Earnings Position
Revenue and earnings position
Drillisch was able to continue the profi table growth of the previous quarters by further increasing the "service revenues" and signifi cantly raising the EBITDA in comparison with the same period last year. This good development of our business is supported by the ongoing dynamic developments in the fi elds of mobile services and mobile internet.
The "service revenues" – essentially the income from the provision of the ongoing mobile services (voice and data transmission) and their billing on the basis of the current subscriber contracts – amounted to €307.8 million gross (adjusted for included customer benefi ts in the form of one-off or limited-term discounts) in the fi rst half of 2017 (HY1 2016: €261.6 million). Net (meaning after deduction of these customer benefi ts = cost of sales), service revenues rose by €23.7 million (10%) in the fi rst half of 2017 to €261.5 million (HY1 fi rst half of 2017 amounted to €311.3 million (HY1 2016: €341.3 million). The decline in total revenues and of sales in the Offl ine segment also results from the sale of the low-margin distribution business. Revenue in the Online segment increased by €39.9 million (18.4%) to €256.3 million (HY1 2016: €216.4 million). The revenues in the Offl ine and Miscellaneous segments came to €98.3 million (HY1 2016: €150.6 million) and €0.5 million (HY1 2016: €0.6 million) respectively. The total of the segment revenues contains €43.8 million in sales revenues from intercompany relationships that were eliminated during the consolidation process (HY1 2016: €26.4 million).
2016: €237.8 million). During the same period, the direct cost of sales included in the service revenues rose correspondingly by €22.6 million to €46.3 million (HY1 2016: €23.7 million).
The low-margin "Other revenues" fell by €76.2 million to €3.5 million (HY1 2016: €79.7 million). The change over the same period of the previous year is essentially a consequence of the sale of the distribution business of Phone House in January 2017. Total turnover in the The MVNO clientele increased further in HY1 2017 by 348,000 (10.4%) to 3.707 million subscribers (31 December 2016: 3.359 million MVNO subscribers). The number of qualitatively higher-value, high-margin budget subscribers increased by 13.3% to 3.243 million subscribers as per 30 June 2017 (31 Decem-
Turnover and Earnings Position
ber 2016: 2.863 million subscribers). The number of lower-margin volume subscribers decreased as expected from 496,000 as per 31 December 2016 to 464,000 subscribers as per 30 June 2017. In comparison with the fi rst half of 2016, the MVNO clientele has increased by a total of 785,000 and the budget clientele has risen by 905,000 within one year.
The total number of customers, i.e. including the remaining subscriber contracts in the service provider model, has risen by 341,000 to 3.771 million (31 December 2016: 3.430 million). So the trend towards a rise in the total customer numbers continues.
During the fi rst half of 2017, the cost of materials decreased by 18.9% to €165.5 million (HY1 2016: €204.2 million). The underlying cause for the decline in the total cost of materials and in the segment Offl ine is essentially found in the sale of the distribution business of Phone House in January 2017. In the Online segment, the cost of materials rose by €22.4 million (18.5%) to €143.7 million (HY1 2016: €121.3 million). The cost of materials in the Offl ine and Miscellaneous segments came to €65.5 million (HY1 2016: €109.1 million) and €0.1 million (HY1 2016: €0.2 million) respectively. The total of the segment expenses includes expenditures from intercompany relationships in the amount of €43.8 million that were eliminated during the consolidation process (HY1 2016: €26.4 million).
As a consequence of the continued growth in clientele, gross profi ts rose from €137.1 million in the fi rst half of 2016 by €8.7 million to €145.8 million as per 30 June 2017. The gross profi t margin rose to 46.8% because of the cessation of the low-margin distribution business (HY1 2016: 40.2%).
Gross profi t in the Online segment in HY1 2017 amounted to €112.6 million (HY1 2016: €95.2 million). The gross profi t margin in the Online segment came to 43.9% (HY1 2016: 44.0%). Gross profi t in the Offl ine segment in HY1 2017 came to €32.8 million (HY1 2016: €41.6 million). The gross profi t margin came to 33.4% (HY1 2016: 27.6%).
Personnel expenses decreased by 14.1% to €24.8 million as a result of the decline in headcount over the same period last year (HY1 2016: €28.9 million). The personnel expenses ratio decreased by 0.5% to 8.0% (HY1 2016: 8.5%).
Other operating expenses fell in total by €10.8 million to €52.8 million (HY1 2016: €63.6 million). Rent expenses and ancillary costs amounted to €7.3 million (HY1 2016: €8.4 million). Expenditures related to bad debts and valuation allowances on receivables in HY1 2017 increased by €3.7 million to €11.4 million (HY1 2016: €7.7 million). Advertising expenses declined by €10.2 million to €12.2 million (HY1 2016: €22.4 million) primarily because of the shift away from general brand advertising to direct expenditures for new customer acquisition that impact gross profi t.
Consolidated EBITDA (earnings before interest, taxes, depreciation and amortisation), one of the most important management indicators at Drillisch Group, amounted to €72.3 million (HY1 2016: €51.1 million). The EBITDA margin came to 23.2% (HY1 2016: 15%). Adjusted for the one-off expenses incurred for the acquisition of the 1&1 participation, con-
Turnover and Earnings Position
solidated EBITDA (earnings before interest, taxes, depreciation and amortisation) improved by 44.9 percent to €74.0 million (HY1 2016: €51.1 million). The adjusted EBITDA margin came to 23.8% (HY1 2016: 15.0%). In the fi rst half of 2016, there were no facts that would have led to an adjustment of consolidated EBITDA.
EBITDA in the Online segment increased by €19.0 million to €76.7 million (HY1 2016: €57.7 million). In the Offl ine segment, the EBITDA segment amounted to €-0.8 million (HY1 2016: €-4.5 million). The EBITDA in the Miscellaneous segment as per 30 June 2017 amounted to €1.1 million (HY1 2016: €0.7 million).
Depreciation and other write-off s increased by €5.2 million to €29.7 million (HY1 2016: €24.5 million). The increase results essentially from the trademark rights acquired in fi scal year 2016 that have been capitalised as intangible assets and will be written off over the expected useful life of 3 years. This resulted in write-off s and depreciation in HY1 2017 totalling €5.0 million (HY1 2016: €0.0). The intangible assets identifi ed within the framework of the purchase price allocation of yourfone and of Phone House will be written off over the usual useful life of 6 and 2.5 years, respectively. This resulted in write-off s and depreciation in HY1 2017 totalling €10.3 million (HY1 2016: €10.4 million). Additional depreciation and amortisation of €5.0 million (HY1 2016: €5.0 million) result from Drillisch's contribution pursuant to the MBA MVNO agreement concluded with Telefónica of €150 million to the investments previously made and to be made in future by Telefónica in the expansion of the LTE network and in future technologies; this contribution has been capitalised under Other intangible assets and will be written off over the expected useful life of 15 years.
EBIT (earnings before interest and taxes) amounted to €42.5 million (HY1 2016: €26.6 million). The EBIT margin rose from 7.8% in the fi rst half of 2016 by 5.9% to 13.7% as per 30 June 2017.
The interest result amounted to €-9.1 million (H1-2016: €-1.8 million). The increase in interest paid from €2.2 million in the fi rst half of 2016 to €9.5 million as per 30 June 2017 mainly results from the conversions eff ected in the fi rst half of 2017 within the framework of the convertible bond issued by Drillisch AG. This fi gure contains €5.0 million (HY1 2016: €0.0) from payments to bond creditors who, within the framework of their conversions, have received a cash settlement after the authorised but unissued capital available for the convertible bond had been completely used up on account of the conversions as well as €2.5 million (HY1 2016: €0.0) additional expenses from the compounding of the convertibles' conversions.
Taxes on income and earnings increased by €3.1 million to €10.7 million (HY1 2016: €7.6 million).
Consolidated profi t amounted to €22.8 million (HY1 2016: €17.2 million). The consolidated comprehensive result as per 30 June 2017 also amounted to €22.8 million (HY1 2016: €17.2 million). The undiluted profi t per share came to €0.39 (HY1 2016: €0.31).
Assets, Liabilities and Financial Position
Assets, liabilities and fi nancial position
All in all, long-term assets rose on balance by €426.8 million to €804.5 million during the fi rst half of 2017 (31 December 2016: €377.7 million). This rise is primarily due to the acquisition of 7.75% of the shares of 1&1 in the amount of €453.1 million in the course of a non-cash capital increase against the issue of 9,062,169 new Drillisch shares. By contrast, intangible assets were reduced by €25.0 million in the fi rst half of 2017, mainly due to regular depreciation over the normal useful life
Deferred tax assets increased slightly by €1.4 million to €14.1 million (31 December 2016: €12.7 million).
The cash balance declined by €69.7 million to €23.1 million (31 December 2016: €92.8 million). This change is primarily due to the dividend payment made in May in the amount of €98.6 million. Trade receivables amounted to €102.9 million (31 December 2016: €92.7 million). Other current assets increased by €10.7 million to €15.7 million (31 December 2016: €5.0 million). All in all, current assets declined by €51.8 million to €148.7 million (31 December 2016: €200.5 million).
The assets of the disposal group per 31 December 2016 concerned the current assets to be presented separately of Phone House Telecom Vertrieb GmbH, which was sold in January 2017. These assets comprised essentially receivables due from network operators in the amount of €16.9 million from the Phone House brokerage activities. In accordance with the provisions of IFRS 5, these assets were classifi ed as being held for sale and presented appropriately as separate items in the balance sheet.
The balance sheet total for Drillisch Group increased by a total of €358.0 million to €953.2 million as per 30 June 2017 (31 December 2016: €595.2 million).
In comparison with 31 December 2016, total equity increased by €470.1 million to €754.3 million (31 December 2016: €283.4 million). As a result of the conversions in the fi rst half of 2017 related to the convertible bonds issued by Drillisch AG in December 2013 and the capital increase eff ected in connection with the acquisition of the shares of 1&1, Subscribed capital rose by €15.5 million and now amounts to €75.7 million (31 December 2016: €60.2 million). As a further consequence of the conversions and the capital increase effected in May, capital reserves increased by €531.3 million to €826.8 million (31 December 2016: €295.6 million). Owing to the dividend disbursement, accumulated defi cit (balanced against the semi-annual profi t) increased by a total of €75.8 million to €-178.7 million (31 December 2016: €-102.9 million). The item Other equity of €-0.6 million (31 December 2016: €-0.6 million) refl ects the actuarial gain or loss from the measurement of the pension provisions recognised as non-operating results in accordance with IAS 19. The equity ratio as per 30 June 2017 came to 79.1% (31 December 2016: 47.6%).
Long-term liabilities declined by €94.4 million to €47.0 million (31 December 2016: €141.5 million). The deferred tax liabilities declined by €3.3 million to €24.8 million as per 30 June 2017 (31 December 2016: €28.1 million) and result essentially from the assets and liabilities identifi ed within the framework of the purchase price allocations of yourfone and Phone House in 2015. The long-term Other liabilities as per 30 June 2017 amounted to €17.0 million (31 December 2016: €16.7 million) and include €14.7 million (31 December 2016: €14.7 million) in liabilities owed primarily to Telefónica pursuant to the 2016 purchase of the trademark rights for the use of the brand name Telefónica.
Assets, Liabilities and Financial Position
In December 2013, Drillisch AG issued a non-subordinated convertible bond with a total volume of €100.0 million and a term of fi ve years. The convertible bond includes an annual coupon of 0.75%. The bond was issued at 100% of the nominal value and will also be redeemed at 100%. The term of the bond ends on 12 December 2018. Shares with a nominal volume of €96.9 million were converted into shares of stock in Drillisch AG in the fi rst half of 2017. A total of 5,000,000 Drillisch shares were issued for this purpose; they will be entitled to dividends for the fi rst time in fi scal year 2018. The bond was presented in the balance sheet at €3.1 million as per 30 June 2017 (31 December 2016: €94.2 million).
Short-term liabilities fell by €1.9 million to €151.8 million as per 30 June 2017 (31 December 2016: €153.7 million). Trade accounts payable rose by €0.9 million to €45.8 million (31 December 2016: €44.9 million). The Other fi nancial liabilities in the amount of €4.5 million (31 December 2016: €5.8 million) are related to contingent short-term purchase price liabilities from the acquisition of Phone House. Tax liabilities rose by €2.2 million to €13.6 million (31 December 2016: €11.4 million). Payments received on account declined to €3.5 million (31 December 2016: €4.2 million). Bank loans and overdrafts in the amount of €50.1 million (31 December 2016: €50.0 million) result from the utilisation of the credit line that has been available since December 2014. Other liabilities declined by €2.7 million to €23.0 million (31 December 2016: €25.7 million). Shortterm provisions as per 30 June 2017 amounted to €10.5 million (31 December 2016: €10.7 million).
The debts of the disposal group were related to the short-term debts of Phone House Telecom Vertrieb GmbH, sold in January 2017, that must be presented separately; they comprised essentially trade liabilities due to distribution partners in the amount of €16.4 million. In accordance with the provisions of IFRS 5, debts that were classifi ed as being held for sale had to be presented as separate items in the balance sheet analogously to the assets.
Cash fl ow
Cash fl ow from current business activities in the fi rst six months of 2017 amounted to €43.2 million (HY1 2016: €61.5 million), refl ecting the earning power of the operating business. The operating cash fl ow of the fi rst half of 2016 was infl uenced by eff ects related to closing dates and period shifts, so that the operating cash fl ows of HY1 2017 and HY1 2016 can only be compared to a limited extent.
Cash fl ow from investment activities came to €-8.7 million (HY1 2016: €-3.3 million) and concerns €6.9 million in payments for investments in tangible and intangible assets (HY1 2016: €2.1 million) and €0.4 million in interest received (HY1 2016: €0.3 million). Payments for acquisitions in the amount of €1.3 million concern subsequent payouts for the acquisition of Drillisch Logistik GmbH (formerly The Phone House Deutschland GmbH). Payments for investments in other fi nancial assets in the amount of €0.9 million (HY1 2016: 0.0 Euro) concern transaction costs directly related to the May 2017 capital increase within the framework of the acquisition of the holding in 1&1. These costs were to be off set directly against the capital reserves.
During the fi rst half of 2017, there was a total outfl ow of funds of €104.3 million from fi nancing activities (HY1 2016: outfl ow of funds of €86.8 million). The funds include €98.6 million (HY1 2016: €95.8 million) essentially concerning the dividend paid in May 2017, €5.2 million (HY1 2016: €0.6 million) concerning interest paid and €-0.5 million (HY1 2016:
Opportunities and Risk Report of the Future Business Development Important events occurring after 30 June 2017 | Outlook
€-0.3 million) concerning the change in investment liabilities. The change in Other fi nancial liabilities during the fi rst half of 2016 results in outgoing payments in the amount of €40.0 million and incoming payments in the amount of €50.0 million from the utilisation of shortterm fi nancing loans.
Opportunity and risk report
The risk management system is an integral component of corporate policy aimed at early exploitation of opportunities and the detection and limitation of risks. Drillisch operates a risk management system throughout the Group that includes continuous observation to ensure early recognition and the standardised recording, assessment, control and monitoring of risks. The objective is to obtain information about negative developments and the related fi nancial eff ects as early as possible so that the appropriate measures can be initiated to counteract them. The management of the company results and company value makes use of the instruments of risk management, which can thus become a strategic success factor for the Company's management for subsidiaries and Drillisch itself.
Opportunities and risks – in comparison with the risks described in the annual report for the year 2016 – of ongoing business operations did not change appreciably during the fi rst six months of fi scal year 2017. In the opinion of the Management Board, adequate precautions have been taken to counter all current existing and identifi ed risks.
Important events occurring after 30 June 2017
On 25 July, the Drillisch AG shareholders present at the extraordinary general meeting approved the non-cash capital increase for the complete acquisition of 1&1 Telecommunication SE (1&1).
As part of the streamlining of the organisational structure, yourfone AG was merged with Drillisch Online AG with the registration in the Commercial Register of 28 July 2017.
Outlook
In view of these general conditions, the Management Board expects a signifi cant increase in MVNO clientele and a related continuation of the positive development of gross profi t in its operating business and a substantial rise in turnover in the area of "service revenues" for 2017 as a whole. The Management Board expects an increase in adjusted EBITDA to between €160 million and €170 million for 2017 (stand alone without 1&1).
ABRIDGED CONSOLIDATED INTERIM ACCOUNTS PER 30 JUNE 2017
- 22 Consolidated Comprehensive Income Statement
- 23 Consolidated Balance Sheet
- 25 Consolidated Statement of Change in Capital
- 26 Consolidated Cash Flow Statement
- 27 Abridged Consolidated Notes
Consolidated Comprehensive Income Statement
| I-II/2017 | I-II/2016 | II/2017 | II/2016 | I/2017 | I/2016 | |
|---|---|---|---|---|---|---|
| €k | €k | €k | €k | €k | €k | |
| Sales | 311,255 | 341,252 | 158,384 | 167,849 | 152,871 | 173,403 |
| Other own work capitalised | 1,539 | 1,192 | 968 | 678 | 571 | 514 |
| Other operating income | 2,556 | 5,259 | 1,171 | 2,084 | 1,385 | 3,175 |
| Raw material, consumables and services used | -165,501 | -204,151 | -84,741 | -98,944 | -80,760 | -105,207 |
| Personnel expenses | -24,806 | -28,861 | -12,595 | -14,496 | -12,211 | -14,365 |
| Other operating expenses | -52,780 | -63,594 | -26,012 | -30,042 | -26,768 | -33,552 |
| Write-off s | -29,730 | -24,489 | -15,277 | -12,225 | -14,453 | -12,264 |
| Operating result | 42,533 | 26,608 | 21,898 | 14,904 | 20,635 | 11,704 |
| Interest income | 410 | 367 | 210 | 186 | 200 | 181 |
| Interest and similar expenses | -9,472 | -2,160 | -8,371 | -1,152 | -1,101 | -1,008 |
| Financial result | -9,062 | -1,793 | -8,161 | -966 | -901 | -827 |
| Profi t before taxes | 33,471 | 24,815 | 13,737 | 13,938 | 19,734 | 10,877 |
| Taxes on income | -10,701 | -7,631 | -4,653 | -4,261 | -6,048 | -3,370 |
| Consolidated Earnings | 22,770 | 17,184 | 9,084 | 9,677 | 13,686 | 7,507 |
| Items which cannot be included in operating results in the future |
0 | 0 | 0 | 0 | 0 | 0 |
| Items which can be included in operating results in the future |
0 | 0 | 0 | 0 | 0 | 0 |
| Consolidated comprehensive results | 22,770 | 17,184 | 9,084 | 9,677 | 13,686 | 7,507 |
| Profi t per share (in €) | ||||||
| Undiluted | 0.39 | 0.31 | 0.14 | 0.17 | 0.25 | 0.14 |
| Diluted | 0.39 | 0.31 | 0.14 | 0.17 | 0.24 | 0.14 |
Consolidated Balance Sheet
| ASSETS | ||
|---|---|---|
| 30/06/2017 | 31/12/2016 | |
| €k | €k | |
| Fixed assets | ||
| Other intangible assets | 230,297 | 255,330 |
| Goodwill | 98,546 | 98,546 |
| Tangible assets | 7,815 | 10,584 |
| Other fi nancial assets | 453,687 | 561 |
| Deferred taxes | 14,120 | 12,697 |
| Fixed assets, total | 804,465 | 377,718 |
| Current assets | ||
| Inventories | 6,969 | 9,984 |
| Trade accounts receivable | 102,893 | 92,658 |
| Tax reimbursement claims | 38 | 38 |
| Cash | 23,058 | 92,771 |
| Other current assets | 15,742 | 5,021 |
| Current assets, total | 148,700 | 200,472 |
| Assets of the disposal group | 0 | 17,014 |
| ASSETS, TOTAL | 953,165 | 595,204 |
Consolidated Balance Sheet
| SHAREHOLDERS' EQUITY AND LIABILITIES | 30/06/2017 | 31/12/2016 |
|---|---|---|
| €k | €k | |
| Shareholders' equity | ||
| Subscribed capital | 75,709 | 60,241 |
| Capital reserves | 826,816 | 295,559 |
| Earnings reserves | 31,123 | 31,123 |
| Other equity | -636 | -636 |
| Unappropriated retained earnings | -178,693 | -102,887 |
| Equity, total | 754,319 | 283,400 |
| Long-term liabilities | ||
| Pension provisions | 1,692 | 1,655 |
| Deferred tax liabilities | 24,763 | 28,062 |
| Debenture bonds | 3,066 | 94,231 |
| Leasing liabilities | 533 | 796 |
| Other liabilities | 16,984 | 16,730 |
| Long-term liabilities, total | 47,038 | 141,474 |
| Short-term liabilities | ||
| Short-term provisions | 10,462 | 10,712 |
| Tax liabilities | 13,643 | 11,397 |
| Trade accounts payable | 45,798 | 44,940 |
| Payments received on account | 3,493 | 4,179 |
| Other fi nancial liabilities | 4,540 | 5,800 |
| Leasing liabilities | 781 | 1,029 |
| Bank loans and overdrafts | 50,080 | 50,011 |
| Other liabilities | 23,011 | 25,678 |
| Short-term liabilities, total | 151,808 | 153,746 |
| Liabilities of the disposal group | 0 | 16,584 |
| SHAREHOLDERS' EQUITY AND LIABILITIES, TOTAL | 953,165 | 595,204 |
Consolidated Statement of Change in Capital
| Number of | Subscribed | Capital | Earnings | Other | Accumula | Equity, | |
|---|---|---|---|---|---|---|---|
| shares | capital | reserves | reserves | equity | ted defi cit | total | |
| €k | €k | €k | €k | €k | €k | ||
| Per 01/01/2016 | 54,764,649 | 60,241 | 295,559 | 31,123 | -417 | -33,483 | 353,023 |
| Dividend payments | 0 | 0 | 0 | 0 | -95,838 | -95,838 | |
| Issue of new shares in the context of the acquisition of 1&1 Telecommunication SE |
0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Convertible bond | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Consolidated comprehensive results |
0 | 0 | 0 | 0 | 17,184 | 17,184 | |
| Per 30/06/2016 | 54,764,649 | 60,241 | 295,559 | 31,123 | -417 | -112,137 | 274,369 |
| Per 01/01/2017 | 54,764,649 | 60,241 | 295,559 | 31,123 | -636 | -102,887 | 283,400 |
| Dividend payments | 0 | 0 | 0 | 0 | -98,576 | -98,576 | |
| Issue of new shares in the context of the acquisition of 1&1 Telecommunication SE* |
9,062,169 | 9,968 | 441,708 | 0 | 0 | 0 | 451,676 |
| Convertible bond | 5,000,000 | 5,500 | 89,549 | 0 | 0 | 0 | 95,049 |
| Consolidated comprehensive results |
0 | 0 | 0 | 0 | 22,770 | 22,770 | |
| Per 30/06/2017 | 68,826,818 | 75,709 | 826,816 | 31,123 | -636 | -178,693 | 754,319 |
*Transaction costs in the amount of €1,432k were taken into account in the capital reserves.
Consolidated Cash Flow Statement
| I-II/2017 | I-II/2016 | |
|---|---|---|
| €k | €k | |
| Consolidated earnings before interest and taxes | 42,533 | 26,608 |
| Income tax paid | -14,216 | -10,508 |
| Income tax received | 104 | 3,194 |
| Write-off s | 29,730 | 24,489 |
| Results from the disposal of fi xed assets | -46 | 141 |
| Change in inventories | 3,014 | 15,154 |
| Change in receivables and other assets | -3,943 | 12,246 |
| Change in trade payables, other liabilities and provisions | -13,250 | -9,277 |
| Change in payments received on account | -686 | -510 |
| Cash fl ow from current business activities | 43,240 | 61,537 |
| Payments for investments in tangible and intangible assets | -6,927 | -2,144 |
| Payments for acquisitions less acquired cash | -1,260 | -1,500 |
| Outgoing payments for investments in other fi nancial assets | -909 | 0 |
| Interest received | 410 | 367 |
| Cash fl ow from investment activities | -8,686 | -3,277 |
| Dividend payments | -98,576 | -95,838 |
| Incoming payments from the taking out of loans | 0 | 50,000 |
| Interest paid | -5,183 | -604 |
| Amortisation of Other fi nancial liabilities | 0 | -40,000 |
| Incurrence/amortisation of investment liabilities | -508 | -344 |
| Cash fl ow from fi nancing activities | -104,267 | -86,786 |
| Change in cash | -69,713 | -28,526 |
| Cash at end of period | 23,058 | 94,906 |
| Cash at beginning of period | 92,771 | 123,432 |
1. General information
Drillisch AG is a listed stock corporation that off ers telecommunication services. Drillisch was founded in 1997. The core business of Drillisch Group is telecommunications and is essentially conducted by the wholly-owned subsidiaries Drillisch Online AG and yourfone AG, both of which are registered in Maintal.
The Group has concluded an MBA MVNO agreement with the network operator Telefónica and an MVNO agreement with the network operator Vodafone; in addition to these agreements, it has service provider licences from the networks Telekom, Vodafone and Telefónica. The Drillisch business comprises essentially the marketing of postpaid and prepaid products in the Telefónica and Vodafone networks.
The address and registered offi ce of Drillisch AG as the parent company of the Group is Wilhelm-Röntgen-Strasse 1–5, 63477 Maintal, Germany. The Company is registered at Hanau Local Court under HRB 7384.
In January 2017, 100% of the shares held in The Phone House Telecom Vertrieb GmbH – i.e. the distribution business, above all with network operator agreements – was sold.
These consolidated interim accounts per 30 June 2017 have neither been audited pursuant to Section 317 HGB [German Commercial Code] nor reviewed by a chartered public accountant.
2. Applied accounting principles
The abridged consolidated interim accounts have been prepared in accordance with the International Financial Reporting Standards (IFRS) as they are to be applied in the EU. All of the applicable IFRS that have been adopted by the EU and became mandatory per 1 January 2017 have been taken into consideration.
The same accounting and valuation methods were applied as to the consolidated annual accounts per 31 December 2016. This abbreviated interim report as per 30 June 2017 has been prepared in accordance with IAS 34, "Interim Financial Reporting". The rate for the consolidated tax on income remains unchanged at 30.25%. The preparation of the interim report requires management to make a number of assumptions and estimates, a situation that can lead to discrepancies between the values disclosed in the interim report and the actual values.
In December 2013, Drillisch AG issued a non-subordinated convertible bond with a total volume of €100.0m and a term of fi ve years. The convertible bond includes an annual coupon of 0.75 %. The bond was issued at 100 percent of the nominal value and will also be redeemed at 100 percent. The conversion right was recognised at the time of its emission in the capital reserves at a value of €12.4m. An interest rate of 3.47 percent was applied for the allocation and led to an initial measurement of the bond of €86.1m. It has been possible to convert the bonds with a nominal value of €100k each into Drillisch AG shares since 22 January 2014. In accordance with the terms and conditions of the bonds, the conversion price was adjusted from the original €24.2869 to €20.3217 per share following the disbursement of a cash dividend in May 2014, May 2015, May 2016 and May 2017, corresponding to 4,920.848 (previous year: 4,764.718) shares per partial debenture. Due to the change in control which occurred twice in the period under review within the framework of the noncash capital increase and the related issue of 9,062,169 new shares of Drillisch AG to United
Internet AG, the conversion price had to be adjusted, and amounted to €19.5990 on the eff ective date of 26 June 2017, or €19.0759 by the eff ective date of 15 August 2017, corresponding to 5,102.301 and 5,242.217 shares respectively per partial debenture. The term of the bond ends on 12 December 2018. Interest will accrue to the liability for the bond in accordance with the eff ective interest rate method.
No bonds were repaid during the reporting period. The convertible bond issued in 2013 was converted in the amount of a nominal volume of €96,900k during the fi rst half of 2017. This resulted in 5,000,000 new shares, which in 2018 will be entitled to dividends for fi scal year 2017. The subscribed capital increased by €5,500k and the capital reserves increased by €89,549k because of the conversion.
For the fi rst time with the beginning of the 2018 fi nancial year, IFRS 15 – Revenue from Contracts with Customers – is compulsory for fi nancial years beginning on or after 1 January 2018. The new standard replaces the existing standards IAS 18 – Revenue and IAS 11 – Construction Contracts, and provides for a uniform, principle-based, fi ve-step model for determining and recording revenue that is to be applied to all contracts with customers. For the transition to IFRS 15, Drillisch will exercise the right to choose in favour of the modifi ed retrospective transition method. The cumulative eff ects of the application of IFRS 15 on contracts that are not yet completed will be recorded in equity without eff ect on income at the beginning of the 2018 reporting period. It is not expected that the application of IFRS 15 will have a signifi cant impact on the revenue recognition of open-ended contracts. For contracts with a term of 24 months, on the other hand, specifi c changes are anticipated from the conversion to IFRS 15 which are expected to aff ect both the level of sales of individual service components as well as at the point in time of revenue recognition. The new features – which may lead to changes in revenue recognition – essentially concern the one-off connection fees received at the beginning of the contract, as well as the direct costs incurred in connection with the acquisition of a contract (sales commissions).
In future, one-off connection fees received at the beginning of the contract are to be carried as liabilities. This can result in both an impact on the point in time of revenue recognition as well as – with several contractual performance obligations – on the level of sales of the individual performance obligations, whereby the sum of the revenues will remain unchanged over the entire term of the contract. Carrying the connection fees as liabilities also leads to an increase in the balance sheet total.
In future, direct costs incurred in connection with the acquisition of a contract (sales commissions) are to be carried on the assets side and written off depending on the transfer of the individual contractual performance obligations to the customer, instead of recognising these costs as expenses at the point in time of payment to the sales partner. On the one hand, this results in an increase in the balance sheet total, and on the other hand leads to shifts within the profi t and loss account. Assuming a proportional distribution of customer acquisition costs, a smoothing can be expected in the profi t and loss account.
A split into several contractual performance obligations (in particular mobile services and hardware – multiple-component transaction) on the basis of their relative fair values and
recognition of revenue at the point in time of fulfi lment of the individual performance obligations is already taking place now, so that this will not result in any signifi cant eff ects on revenue recognition.
At the moment, a reliable concrete estimate of the quantitative eff ects is not possible.
3. Treasury stock
The Annual General Meeting on 21 May 2015 adopted a resolution authorising the Drillisch AG Management Board to acquire treasury stock totalling up to 10% of the share capital at the time of the Annual General Meeting 2015 on or before 20 May 2020 (including the use of derivatives). Per the closing date 30 June 2017, Drillisch AG did not hold any shares of its own stock.
4. Profi t per share
The undiluted profi t per share is calculated in accordance with IAS 33.9 et seqq by dividing the consolidated profi t from continuing business operations by the weighted average of the number of ordinary shares outstanding.
The diluted profi t per share is calculated in accordance with IAS 33.30 et seqq. by dividing the consolidated results from continuing business operations, adjusted for the after-tax effects of any interest recognised in the period related to potential ordinary shares, by the weighted average number of shares outstanding plus the weighted number of shares which would be issued on the conversion of all dilutive potential shares into ordinary shares.
| I-II/2017 | I-II/2016 | |
|---|---|---|
| Consolidated profi t in €k | 22,770 | 17,184 |
| Weighted average less own shares held (number) | 58,006,009 | 54,764,649 |
| Undiluted consolidated profi t per share in € | 0.39 | 0.31 |
| Consolidated profi t in €k | 22,770 | 17,184 |
| Net eff ect on results from convertible bond in €k | 0 | 1,220 |
| Adjusted consolidated profi t in €k | 22,770 | 18,404 |
| Weighted average less own shares held (number) | 58,006,009 | 54,764,649 |
| Shares from convertible bond to be included as average (number) | 0 | 4,764,718 |
| Adjusted weighted average less own shares held (number) | 58,006,009 | 59,529,367 |
| Diluted consolidated profi t per share in € | 0.39 | 0.31 |
Dilution eff ects can result because of potential ordinary shares from the issue of the convertible bond. The calculation of the diluted profi t as per 30 June 2017 did not take account of a net eff ect on results of €4,089k from the convertible bond, because this would have counteracted dilution.
5. Explanatory comments on capital fl ow statement
The liquidity (cash) shown in the cash fl ow statement includes cash on hand and cash in banks which are shown under Cash in the consolidated balance sheet.
The cash fl ow statement has been prepared in compliance with IAS 7 and breaks down the changes in cash according to payment fl ows from current business, investment and fi nancing activities. Cash fl ow from current business activities is calculated using the indirect method.
6. Segment presentation
The segment report is based on the internal organisation and reporting structure, The differentiation between the segments Online and Offl ine is based on the expanded sales structure. The segment Miscellaneous is described in addition to the segments Online and Offl ine.
The Group's activities in the area of mobile services, diff erentiated according to the sales structure, are shown in the segments Online and Offl ine.
In the segment Online, mobile services of the network operators Telefónica Germany GmbH & Co. OHG and Vodafone D2 GmbH are marketed via online distribution channels and are provided to the acquired customers on the basis of mobile services contracts. The advance services acquired from the two network operators are resold to end consumers for the Company's own account and at rates that Drillisch defi nes itself based on its own calculations.
In the segment Offl ine, mobile services on the network of Telefónica Germany GmbH & Co. OHG are marketed basically via own shops, yourfone partner shops and other indirect distribution channels and provided to the customers acquired via these channels on the basis of mobile services contracts. Moreover, the segment Offl ine encompasses all of the activities related to the full operation of own and partner shops, including the provision of hardware and the distribution business (until end of 2016). The advance services acquired from the network operator Telefónica Germany GmbH & Co. OHG are resold to end consumers for the Company's own account and at rates that Drillisch defi nes itself based on its own calculations. Last year, the rates of the network operators were calculated on a commission basis in the distribution sector.
The segment Miscellaneous comprises all of the activities related to the off ering of custom software solutions, maintenance and support services and (to a small extent) mobile services as well.
| Segment Report 01/01/2017– 30/06/2017 |
Online | Offl ine | Miscellane ous |
Consoli dation |
Total |
|---|---|---|---|---|---|
| €k | €k | €k | €k | €k | |
| Sales with third parties | 244,936 | 65,874 | 445 | 0 | 311,255 |
| Inter-company sales | 11,336 | 32,449 | 51 | -43,836 | 0 |
| Segment sales | 256,272 | 98,323 | 496 | -43,836 | 311,255 |
| Cost of materials external third parties |
-129,181 | -36,269 | -51 | 0 | -165,501 |
| Cost of materials from inter company relationships |
-14,486 | -29,251 | -82 | 43,819 | 0 |
| Cost of materials for segment | -143,667 | -65,520 | -133 | 43,819 | -165,501 |
| Gross profi t for segment | 112,605 | 32,803 | 363 | -17 | 145,754 |
| Segment EBITDA | 76,724 | -762 | 1,138 | -4,837 | 72,263 |
| Segment Report 01/01/2016 – 30/06/2016 |
Online | Offl ine | Miscellane ous |
Consoli dation |
Total |
|---|---|---|---|---|---|
| €k | €k | €k | €k | €k | |
| Sales with third parties | 200,123 | 140,638 | 491 | 0 | 341,252 |
| Inter-company sales | 16,299 | 9,968 | 126 | -26,393 | 0 |
| Segment sales | 216,422 | 150,606 | 617 | -26,393 | 341,252 |
| Cost of materials external third parties |
-111,157 | -92,924 | -70 | 0 | -204,151 |
| Cost of materials from inter company relationships |
-10,095 | -16,126 | -178 | 26,399 | 0 |
| Cost of materials for segment | -121,252 | -109,050 | -248 | 26,399 | -204,151 |
| Gross profi t for segment | 95,170 | 41,556 | 369 | 6 | 137,101 |
| Segment EBITDA | 57,656 | -4,542 | 738 | -2,755 | 51,097 |
*Adjusted
In the same period last year, Drillisch AG business activities related to its holding activities were attributed to the Miscellaneous/Holding segment. In the period under review, these are shown in the Consolidation column.
The reconciliation of the total of the segment profi ts (EBITDA) with the profi t before taxes on income is determined as shown below:
| I-II/2017 | I-II/2016 | |
|---|---|---|
| €k | €k | |
| Total segment profi ts (EBITDA) | 72,263 | 51,097 |
| Write-off s | -29,730 | -24,489 |
| Operating result | 42,533 | 26,608 |
| Financial result | -9,062 | -1,793 |
| Profi t before taxes on income | 33,471 | 24,815 |
All business relations within and/or between the segments are eliminated in the course of consolidation. Such relations are essentially the off setting of the expenses and income within the Group. The accounting principles (IFRS as they are to be applied in the EU) are identical for all of the segments.
7. Relations to relatives and companies
Per 30 June 2017, there were amounts (income and expenses) owed from and owed to relatives and companies as shown below:
The Baugemeinschaft Maintal, consisting of the shareholders Paschalis Choulidis and Marianne Choulidis, has let offi ce space in Maintal to Drillisch Group. The lease runs until 31 December 2020. Rent expenses for the fi rst 6 months of 2017 amounted to €254k (last year: €254k).
The company VPM Immobilien Verwaltungs GmbH, Maintal (shareholders: Vlasios Choulidis, Paschalis Choulidis and Marc Brucherseifer), has let offi ce space in Maintal to Drillisch Group. The lease runs until 31 December 2020. Rent expenses for the fi rst 6 months of 2017 amounted to €89k (last year: €89k).
The company SP Beteiligungs GmbH, Langenselbold (shareholder: Ms Simone Choulidis), realised sales in the amount of €79k (previous year: €0k) with Drillisch Group in the fi rst 6 months of 2017.
There were no amounts due to or due from the related parties mentioned above per 30 June 2017.
8. Financial instruments
None of the fi nancial assets were reclassifi ed into another valuation category pursuant to IAS 39 during the reporting period. None of the fi nancial assets and fi nancial liabilities were designated as operating results at fair value during the reporting period. The pertinent book value for short-term fi nancial assets and liabilities that are not derivatives is a reasonable approximation of the fair value within the sense of IFRS 7.29(a).
Financial assets and liabilities measured at fair value must be classifi ed according to various valuation levels (so-called fair value hierarchy). The hierarchy levels are based on the factors used to determine the attributable fair value. Level 1 utilises the quoted price (unadjusted) on active markets for identical assets or liabilities. Level 2 utilises inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 utilises inputs which are not based on observable market data and must be determined on the basis of valuation methods.
As per 30 June 2017, there were other fi nancial assets in the amount of €453.7m; these are presented in the balance sheet at fair value. The fi nancial assets obtained from the acquisition of 7.75% shares of 1&1 Telecommunication SE were measured in accordance with Level 3 (no observable market values, valuation based on valuation models). In total, €453.7m (31 December 2016: €0.6m) is to be classifi ed at Level 3.
As per 30 June 2017, there were fi nancial liabilities in the amount of €4.5m (31 December 2016: €5.8m); these are measured at fair value. The variable purchase price liability from the acquisition of The Phone House Deutschland GmbH was measured in accordance with Level 3 (no observable market values, valuation based on valuation models). The variable purchase price liabilities arise from legal disputes related to Phone House that are still pending. If and when further payments are received, Drillisch must (pursuant to the purchase contract) forward them to the seller. The measurement is oriented to the amount that in all likelihood must be paid. In total, €4.5m (31 December 2016: €5.8m) is to be classifi ed at Level 3.
The fi nancial instruments included in Level 3 developed as shown below during the fi rst half of 2017:
| I-II/2017 | |
|---|---|
| €k | |
| 1 January (liability) | -5.2 |
| Additions to Other fi nancial assets | 453.1 |
| Amortisation and depreciation | 1.3 |
| 30 June (asset) | 449.2 |
Affi rmation Statement of the Legal Representatives
Declaration according § 37y WpHG in connection with § 37w Sec. 2 Nr. 3 WpHG
We warrant, to the best of our knowledge, that the consolidated interim accounts, in accordance with the applicable accounting principles for interim reporting, present a true and fair view of the assets and liabilities, fi nancial position and profi t and losses of the Group, and that the course of business described in the consolidated interim management report, including the results of business activities and the Group's position, is presented in such a manner as to give a true and fair view thereof as well as of the major opportunities and risks of the foreseeable development of the Group during the remainder of the business year.
Maintal, 10 August 2017
Vlasios Choulidis André Driesen
INVESTOR RELATIONS CORNER
- 36 Financial Calendar | Current Analyst Assessments
- 37 Share Price Development | Director's Holdings
- 38 Shareholder Structure
Financial Calendar | Current Analyst Assessments
1. Financial Events Calendar
| Financial Events 2017* | |
|---|---|
| Date | Subject |
| Thursday, 10 August 2017 | Quarterly Close Q2 2017 |
| Tuesday, 14 November 2017 | Quarterly Close Q3 2017 |
| * Date is preliminary and subject to change. |
2. Dividend Policy
For fi scal 2016, the general meeting (18 May 2017) approved an increased dividend of €1.80 per voting share (2016: €1.75). Since 2009, the eighth increase of the dividend. Drillisch want to ensure that the shareholder benefi t appropriately from the success of the Company in future as well.
3. Current Analyst Assessments (Last Revised 04 July 2017)
In view of the Company's performance (EBITDA of €120.2 million in fi scal year 2016 (slightly outperformed on the EBITDA guidance) and a further increase to between €160 million and €170 million in fi scal year 2017 as well as a long-term dividend policy and the good strategic positioning on the German wireless services market, the capital market rates the Drillisch stock overall as promising.
| Latest analyst assessments (per 04 July 2017) | ||||
|---|---|---|---|---|
| Analysis | Rating | Target | Date | |
| Lampe | "Buy" | €66.00 | 04 July 2017 | |
| Hauck & Aufhäuser | "Sell" | €44.00 | 23 June 2017 | |
| NewStreet | "Hold" | €61.00 | 22 June 2017 | |
| Barclays | "Overweight" | €70.00 | 19 June 2017 | |
| Goldman | "Hold" | €60.00 | 13 June 2017 | |
| Warburg | "Hold" | €56.00 | 13 June 2017 | |
| UBS | "Buy" | €68.00 | 12 June 2017 | |
| HSBC | "Buy" | €70.00 | 31 May 2017 | |
| UBS | "Buy" | €53.00 | 30 May 2017 | |
| Kepler | "Buy" | €64.00 | 24 May 2017 | |
| Barclays | "Overweight" | €70.00 | 22 May 2017 | |
| Lampe | "Buy" | €66.00 | 22 May 2017 |
A constantly updated overview of the analysts' recommendations can be found on the Drillisch AG IR home page.
www.drillisch.de
- Investor Relations
- Research Notes
Share Price Development | Director's Holdings
4. Share Price Development in First Half of 2017
| The performance of the Drillisch stock in First Half of 2017 in comparison with the indices | ||||
|---|---|---|---|---|
| 2016 year end | 30 June 2017 | %-change | ||
| Drillisch | €40.895 | €52.65 | + 28.7 | |
| TecDAX | 1,811.72 | 2,188.25 | + 20.8 | |
| DAX | 11,481.06 | 12,325.12 | + 7.4 |
Performance of the of the Drillisch stock signifi cantly better than DAX and TecDAX
5. Directors' Holdings per 30 June 2017
| Management Board | No-par-shares |
|---|---|
| Vlasios Choulidis | 208,333 0.30 % |
| MV Beteiligungs GmbH | 65,000 0.09 % |
| Supervisory Board | No-par-shares |
| Marc Brucherseifer, Dipl.-Kfm. (Chair) | 828,108 1.20 % |
Shareholder Structure
6. Shareholder Structure (as of 30 June 2017)
* Per the voting rights notifi cations published to date as well as the announcement of United Internet pursuant to Sec. 23 para. 1 sentence 1 no. 1 German Securities and Takeover Act; number of shares admitted to trading: 59,764,649 1) On the basis of the XETRA closing price €52.65 on 30 June 2017. Free Float acc. to the rule of Dt. Boerse AG: 69.61%. Note: Share numbers in the structure chart do not include instruments pursuant to Sec. 25 WpHG
7. Investor Relations
Communications are conducted in conformity with the fair disclosure principle, i.e. all shareholders and interested parties are simultaneously provided with the same type of information about all important developments. The ongoing work can be followed and tracked equally by all investor groups on our investor relations home page where all of our relevant reports can be viewed. Many of the people interested in our Company also take advantage of the opportunity for personal contact via email and/or telephone.
SERVICE CORNER
- 40 Publications | Contacts | Information and Order Service
- 41 Editorial Information
- 42 Drillisch AG Brands the Choice is Yours!
Publications | Contacts | Information and Order Service
Publications
The present report o is also available in a German version.
You can view and download our business and quarterly reports, ad-hoc announcements, press releases and other publications about Drillisch AG at www.drillisch.de.
Information and Order Service
Please use our online order service in the Investor Relations section on our website at www.drillisch.de
We will of course be glad to send you the requested information by post or fax as well.
We will also be glad to help you with any personal queries by telephone.
Your Contacts
We will also be glad to help you with any queries about Drillisch AG and our brands:
Oliver Keil,
Head of Investor Relations
Wilhelm-Röntgen-Straße 1-5 D – 63477 Maintal Telefon: +49 (0) 6181 / 412 200 Fax: +49 (0) 6181 / 412 183 E-Mail: [email protected]
Archibald Preuschat,
Corporate Communications Press Offi cer
Wilhelm-Röntgen-Straße 1-5 D – 63477 Maintal Telefon: +49 (0) 6181 / 412 143 Fax: +49 (0) 6181 / 412 183 E-Mail: [email protected]
Editorial Information
Company Headquarters:
Wilhelm-Röntgen-Straße 1-5 D – 63477 Maintal Telephone: +49 (0) 6181 / 412 3 Fax: +49 (0) 6181 / 412 183 Wilh l Rö t St ß 1 5
Responsible:
Drillisch AG
Management Board:
Vlasios Choulidis (Spokesperson)
André Driesen
Supervisory Board: Marc Brucherseifer, Dipl.-Kfm. (Chair)
Dr Susanne Rückert (Deputy Chair)
Norbert Lang
Horst Lennertz, Dr.-Ing.
Frank Rothauge, Dipl.-Kfm.
Dr Bernd H. Schmidt (until 31 May 2017)
Investor Relations Contact:
Telephone: +49 (0) 6181 / 412 200 Fax: +49 (0) 6181 / 412 183 E-mail: [email protected]
Commercial Register Entry: HRB 7384 Hanau VAT ID No.: DE 812458592 Tax No.: 03522506037 Off enbach City Tax Offi ce l
Disclaimer:
The information provided in this publication is checked carefully. However, we cannot guarantee that all specifi cations are complete, correct and up to date at all times.
Future-oriented Statements:
This report contains certain statements oriented to the future which are based on the current assumptions and projections of the management of the Drillisch Group. Various risks, uncertainties and other factors, both known and unknown, can cause the actual results, fi nancial position, development or performance of the Company to deviate substantially from the assessments shown here. Such factors include those which we described in reports to the Frankfurt securities exchange. The Company does not undertake any obligation to update such future-oriented statements and to adapt them to future events or developments.
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Drillisch AG
Wilhelm-Röntgen-Straße 1-5 63477 Maintal Germany