EQS-Adhoc: 1&1 with successful fiscal year 2022

1&1 with successful fiscal year 2022

• Customer contracts: + 350,000 to 15.78 million
• Revenue: + 1.4 percent to €3,964 million, thereof €3,175 million service revenues (+ 1.7 percent)
• EBITDA: €693.3 million (+ 3.2 percent) - excluding out-of-period income in 2021

Montabaur, March 29, 2023 – In the business year 2022, 1&1 AG (ISIN DE 0005545503) was able to increase the number of its customer contracts compared to the previous year’s reporting date by 350,000 to 15.78 million. Growth was based on 490,000 new mobile internet contracts (+650,000 operational growth less -160,000 contracts due to TKG effect), whilst the number of broadband lines decreased by - 140,000 to 4.10 million (-50,000 operational and -90,000 contracts due to TKG effect).

Revenue rose by 1.4 percent to €3,963.7 million (2021: €3,909.7 million). In this context, high-value service revenue increased by 1.7 percent to €3,175.4 million (2021: €3,123.4 million).

Earnings before interest, taxes, depreciation and amortisation (EBITDA) decreased by 2.5 percent or €18.0 million to €693.3 million compared to the previous year (2021: €711.3 million). This includes €39.4 million in out-of-period income in 2021 related to conditions of the new national roaming agreement applicable as of 1 July 2020, which were corrected retroactively. Excluding this out-of-period income, comparable operating EBITDA was at €671.9 million, resulting in 2022 in a comparable EBITDA increase of 3.2 percent or €21.4 million compared to the same period last year.

The above EBITDA includes increased start-up costs for preparations for the 5G network roll-out of €14.5 million (2022: -€52.4 million; 2021: -€37.9 million).

Earnings per share (EPS) amounted to €2.08 (2021: €1.94, excluding out-of-period income). Excluding the effects of PPA amortization, earnings per share amounted to €2.34 (2021: €2.29 excluding income relating to other periods).

The annual financial statements of the 1&1 AG under commercial law close financial year 2022 with a net loss of €983.1 million (2021: net profit of €364.8 million). The result includes a non-cash impairment loss on the carrying amount under commercial law of the subsidiary 1&1 Telecommunication SE in the amount of €1,338.0 million. The unscheduled adjustment results from the significant increase in interest rates at the end of the year under the actuarial valuation model and is not operationally justified. The adjustment has no impact on the key figures in the Group.

Forecast

For the financial year 2023, the Company expects a growth of ca. 500,000 new customer contracts. Service revenue is expected to increase by around 2 percent to ca. €3.23 billion (2022: €3.175 billion) and the EBITDA is expected at ca. €655 million (2022: €693.3 million). The "Access" segment will contribute a growth of ca. 4 percent to ca. €775million (2022: €745.7 million) and the "1&1 mobile network" segment with start-up costs for the construction of the 5G network ca. - €120 million (2022: - €52.4 million). A capital expenditure volume (cash capex) of around €320 million is expected for 2023 (2022: €250 million), primarily for the new mobile communications network (antennas, computers, software, etc.).

Based on the figures for 2022, the Management Board and Supervisory Board will propose an unchanged dividend of €0.05 per share for the fiscal year 2022 (prior year: €0.05) at the Annual Shareholders' Meeting on May 16, 2023. This proposal is oriented to the minimum dividend required by Section 254 (1) Stock Corporation (Aktiengesetz; AktG). Assuming 176.3 million shares entitled to dividend (as per 31/12/2022), this would result in a total disbursement of €8.8 million for fiscal 2022.

Performance indicators pursuant to IFRS — comparison 2022 vs. 2021

The annual report will be made available on the Company’s home page on March 30, 2023.

https://www.1und1.ag/investor-relations-en#meldungen-berichte-praesentationen

Montabaur, 29 March 2023

1&1 AG

The Management Board

About 1&1 AG

1&1 AG is a listed telecommunications provider domiciled in Montabaur. The Company is a member of the United Internet AG corporate group. 1&1 offers its customers a comprehensive portfolio of mobile and broadband access. Moreover, other portfolio components are attractively bundled mobile and fixed network products and value-added applications such as home networking, online storage, video on demand, smart home solutions or IPTV. While the 1&1 brand is addressing value and premium segments, the Group’s discount brands appeal to price-conscious target customers.

Following the successful participation in the 5G frequency auction, 1&1 as the fourth German network operator will establish the first European-wide fully virtualized mobile network on the basis of the innovative OpenRAN technology.

Note:

Financial performance indicators such as EBITDA, EBITDA margin, EBIT, EBIT margin or free cash flow are used in addition to the disclosures required by the International Financial Reporting Standards (IFRS) in the annual and interim financial statements of 1&1 AG and in ad hoc reports pursuant to Art. 17 MAR to ensure a clear and transparent presentation of 1&1 AG business development. Information about the use, definition and calculation of these performance indicators is provided on page 45, 46 of the Annual Report 2021 of 1&1 AG.

1596259  29-March-2023 CET/CEST