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MarketScreener Homepage  >  Equities  >  Xetra  >  United Internet AG    UTDI   DE0005089031

UNITED INTERNET AG

(UTDI)
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United Internet : Interim Statement Q3 2020

11/10/2020 | 04:47am EST

Interim Statement Q3 2020

2

SELECTED KEY FIGURES

Sept. 30, 2020

Sept. 30, 2019

Change

NET INCOME (in € million)

Sales

3,984.7

3,855.0

+ 3.4%

EBITDA(1)

896.4

944.0

- 5.0 %

EBIT(1)

541.6

587.6

- 7.8 %

EBT(2)

501.7

528.6

- 5.1 %

EPS (in €)(2)

1.33

1.39

- 4.3 %

BALANCE SHEET (in € million)

Current assets

1,359.3

1,405.9

- 3.3%

Non-current assets

7,805.0

7,896.1

- 1.2%

Equity

4,835.7

4,801.0

+ 0.7%

Equity ratio

52.8%

51.6%

Total assets

9,164.3

9,302.0

- 1.5%

CASH FLOW (in € million)

Operative cash flow

690.5

725.9

- 4.9%

Cash flow from operating activities

717.7

476.0

+ 50.8%

Cash flow from investing activities

- 349.2

-69.6

Free cash flow(3)

284.3

323.7

- 12.2%

EMPLOYEES

Total headcount as of September 30

9,565

9,241

+ 3.5%

thereof Germany

7,866

7,627

+ 3.1%

thereof abroad

1,699

1,614

+ 5.3%

SHARE (in €)

Share price as of September 30 (Xetra)

32.67

32.73

- 0.2%

CUSTOMER CONTRACTS (in million)

Access, total contracts

14.68

14.12

+ 0.56

thereof mobile internet

10.36

9.78

+ 0.58

thereof broadband connections

4.32

4.34

- 0.02

Consumer Applications, total accounts

41.17

39.27

+ 1.90

thereof with Premium Mail subscription (contracts)

1.61

1.54

+ 0.07

thereof with Value-Added subscription (contracts)

0.74

0.72

+ 0.02

thereof free accounts

38.82

37.01

+ 1.81

Business Applications, total contracts

8.38

8.13

+ 0.25

thereof Germany

4.01

3.88

+ 0.13

thereof abroad

4.37

4.25

+ 0.12

Fee-based customer contracts, total

25.41

24.51

+ 0.90

  1. 9M 2019 including extraordinary income from the sale of virtual minds shares (EBITDA and EBIT effect: € +21.5 million)
  2. 9M 2019 without extraordinary income from the sale of virtual minds shares (EBT effect: € +21.5 million; EPS effect: € +0.11 €) and
    without impairment charges Tele Columbus (EBT effect: € -34.2 million; EPS effect: € -0.17);
  3. Free cash flow is defined as cash flow from operating activities, less capital expenditures, plus payments from disposals of intangible assets and property, plant and equipment (without aperiodic tax payments); including the repayment portion of lease liabilities, which have been reported under cash flow from financing activities since the fiscal year 2019 (IFRS 16); 9M 2019 without capital gains tax payment (free cash flow effect: € -56.2 million) and without tax payments from fiscal year 2017 and previous years (free cash flow effect: € -27.2 million)

3

CONTENT

4 FOREWORD OF CEO

6 INTERIM GROUP MANAGEMENT REPORT FOR THE FIRST NINE MONTHS OF 2020 6 Business development

13 Position of the Group

21 Subsequent events

21 Risk and opportunity report

22 Forecast report

24 Notes on the quarterly statement

29 INTERIM FINANCIAL STATEMENTS

FOR THE FIRST NINE MONTHS OF 2020 30 Balance sheet

32 Net income

34 Cash flow

36 Changes in shareholders' equity

38 Segment reporting

40 FINANCIAL CALENDAR / IMPRINT

4

Dear shareholders, employees,

and business associates of United Internet,

Despite the adverse macroeconomic environment caused by the coronavirus pandemic, United Internet AG continued to make significant investments in new customer contracts and the expansion of existing customer relationships - and thus in sustainable growth - during the first nine months of 2020. As a result, we increased the number of fee-based customer contracts organically by a further 670,000 to

25.41 million contracts. Of this total, 350,000 contracts were added in the Consumer Access segment and 230,000 contracts in the Business Applications segment. A further 90,000 contracts (pay accounts) and 1.23 million ad-financed free accounts were added in the Consumer Applications segment.

Consolidated sales grew by 3.4% in the first nine months of 2020, from € 3,855.0 million in the previous year to € 3,984.7 million. This growth was achieved in spite of the negative impact on business from the coronavirus pandemic, especially in the Consumer Access and Consumer Applications segments. There were opposing positive effects in the Business Access segment. Adjusted for these pandemic effects of

  • -17.0million in total, like-for-like sales rose by 3.8%. All four business segments contributed to this revenue growth.

There was a significant 5.0% decline in consolidated EBITDA to € 896.4 million in the first nine months of 2020 compared to the prior-year figure (€ 944.0 million including extraordinary income of € 21.5 million from the sale of shares in virtual minds).

Apart from the positive extraordinary income in the previous year, this decrease was mainly due to the price increase introduced by Telefónica Germany on July 1, 2020 for 1&1 Drillisch's use of Telefónica's network capacity. 1&1 Drillisch believes that the wholesale prices charged by Telefónica as of July 1, 2020 are excessive and do not comply with the voluntary commitments of Telefónica as part of the European Commission's clearance of its merger with E-Plus, as well as the MBA MVNO agreement. 1&1 Drillisch will take the necessary steps to safeguard its rights (including possible claims for damages) in order to seek a review of the unjustified portion of the invoiced price increase ("excessive MBA invoicing").

In addition to this excessive MBA invoicing by an amount of € 35.4 million, earnings of 1&1 Drillisch were burdened by negative effects from regulatory decisions of the EU on SMS tariffs (since May 15, 2019) and of Germany's Federal Network Agency regarding subscriber line charges (since July 1, 2019) with a total impact of € -13.7 million (prior year: € -1.0 million). Moreover, the initial costs for the construction of our own 5G mobile communications network rose to € -8.4 million (prior year: € -2.5 million). By contrast, the one-off costs for integration projects declined to € -0.7 million (prior year: € -3.8 million). On top of this, the coronavirus pandemic also burdened earnings by a total of € -19.7 million in the first nine months of 2020. The negative impact on both the Consumer Access and Consumer Applications segments was offset in part by slightly positive effects in the Business Access segment. Adjusted for the extraordinary income in the previous year, the excessive MBA invoicing, and the aforementioned negative effects, like-for-like EBITDA was 4.8% above the prior-year figure.

Consolidated EBIT of € 541.6 million was similarly influenced by these negative effects and also fell well short of the prior-year figure (€ 587.6 million including the aforementioned extraordinary income). Adjusted for the extraordinary income in the previous year, excessive MBA invoicing, and the aforementioned negative effects, like-for-like EBIT was 8.0% above the prior-year figure.

IN T ERIM M A N AGE MENT REP ORT

IN T ERIM FIN AN C IA L S TAT E MENT S

FIN A N CI AL C A LEND AR / I MP RIN T

5

F O R E W O R D

Earnings per share (EPS) fell from € 1.35 in the previous year to € 1.33. The prior-year EPS figure included positive extraordinary income from the sale of virtual minds (EPS effect: € +0.11) as well as an opposing effect from non-cash impairment charges on Tele Columbus shares (EPS effect: € -0.15). Adjusted for these effects, operating EPS decreased by 4.3% from € 1.39 to € 1.33 and operating EPS before PPA amortization by 4.5% from € 1.76 to € 1.68. This decline was also caused by the increase in wholesale prices and the negative effects from regulation topics, as well as by the coronavirus pandemic and initial costs for the construction of our own 5G mobile communications network.

1&1 Drillisch anticipates lower than expected sales of smartphones and tablets due to a reduced willingness among its existing customers to change tariffs. Consequently, we have updated our sales growth guidance for 2020 from approx. 4% to approx. 3% (prior-year sales € 5,194.1 million). It should be noted, however, that at the beginning of the year 1&1 Drillisch and United Internet had still anticipated that sales would merely remain unchanged from the previous year. Moreover, as the sale of devices is an extremely low-margin business, this sales update also has no impact on our EBITDA forecast and we can thus confirm this figure at the unchanged level of € 1.180 billion.

This guidance is still subject to uncertainty, as an exact assessment of the duration and further impact of the coronavirus pandemic is not currently possible and the outcome of the current negotiations cannot be predicted.

We are well prepared for the next steps in our Company's development and upbeat about our prospects for the remaining months of the fiscal year. After completing the first nine months of 2020, we would like to express our heartfelt gratitude to all employees for their dedicated efforts - especially in view of the challenges presented by the coronavirus pandemic. We also want to thank our shareholders and business associates for the trust they continue to place in United Internet AG.

Montabaur, November 10, 2020

Ralph Dommermuth

6

INTERIM STATEMENT ON THE THIRD QUARTER OF 2020

Business development of the Group

Development of the Consumer Access segment

The number of fee-based contracts in the Consumer Access segment rose by 350,000 contracts to

  1. million in the first nine months of 2020. Broadband connections decreased slightly by 20,000 to
  1. million, while mobile internet contracts increased by 370,000 to 10.36 million.

Development of Consumer Access contracts in the first nine months of 2020

in million

Sept. 30, 2020

Dec. 31, 2019

Change

Consumer Access, total contracts

14.68

14.33

+ 0.35

thereof Mobile Internet

10.36

9.99

+ 0.37

thereof broadband connections

4.32

4.34

-0.02

Development of Consumer Access contracts in the third quarter of 2020

in million

Sept. 30, 2020

June 30, 2020

Change

Consumer Access, total contracts

14.68

14.57

+ 0.11

thereof Mobile Internet

10.36

10.24

+ 0.12

thereof broadband connections

4.32

4.33

-0.01

Sales of the Consumer Access segment rose by 3.1% in the first nine months of 2020, from

  • 2,709.2 million in the previous year to € 2,792.8 million. Whereas the temporary change in customer behavior caused by the coronavirus pandemic (especially in the field of telephony, due in part to work- from-home regulations and shelter-in-place restrictions) still had a positive impact on sales in the first quarter of 2020, this was outweighed in the second and third quarters by burdens on sales (especially from reduced international roaming revenue) due to severely restricted travel possibilities for customers in this segment. All in all, there was a resulting negative effect on sales of € -16.4 million. Adjusted for this effect, like-for-likesales rose by 3.7%.

Despite the fall in international roaming revenue, high-marginservice revenues - which represent the core business of this segment - rose by 2.6% from € 2,200.3 million to € 2,257.7 million. Low-marginhardware sales (customers pay no or only a low one-off price when signing contracts and the device is refinanced via higher tariff prices over the contract term) increased by 5.1% from € 508.9 million to

  • 535.1 million - even though the third quarter was well below target due to fewer tariff changes among existing customers.

With a 9.8% decrease to € 458.6 million, however, segment EBITDA fell well short of the prior-year figure (€ 508.6 million). This was mainly due to a price increase introduced by Telefónica on July 1, 2020 for the use of its network capacity. 1&1 Drillisch believes that the wholesale prices charged do not comply with the voluntary commitments of Telefónica as part of the European Commission's clearance of its merger with E-Plus, as well as the MBA MVNO agreement. 1&1 Drillisch will take the necessary steps to safeguard its rights (including possible claims for damages) in order to seek a review of the unjustified portion of the invoiced price increase ("excessive MBA invoicing"). In addition to this excessive MBA invoicing by an amount of € 35.4 million, earnings were burdened by negative effects

FORE WORD

IN T ERIM FIN AN C IA L S TAT E MENT S

FIN A N CI AL C A LEND AR / I MP RIN T

7

I N T E R I M M A N A G E M E N T RE P O R T

from regulatory decisions of the EU on SMS tariffs (since May 15, 2019) and of Germany's Federal Network Agency regarding subscriber line charges (since July 1, 2019) with a total impact of

  • -13.7million (prior year: € -1.0 million). Moreover, the initial costs for the construction of the Company's own 5G mobile communications network rose to € -8.4 million (prior year: € -2.5 million). By contrast, one-off costs for integration projects declined to € -0.7 million (prior year: € -3.8 million). On top of this, the temporary change in customer behavior caused by the coronavirus pandemic in the first nine months of 2020, especially in the field of telephony and international roaming (due in part to work-from-home regulations, shelter-in-place restrictions, and greatly reduced travel), also burdened segment earnings by € -17.7 million. Adjusted for excessive MBA invoicing and the aforementioned effects, like-for-likeEBITDA rose by 3.6%.

Due to the above mentioned burdens on earnings, segment EBIT of € 345.7 million was also down on the prior-year figure (€ 396.6 million).

Key sales and earnings figures in the Consumer Access segment (in € million)

Sales

2,792.8

+ 3.1 %

9M 2020

2,709.2

9M 2019

thereof service sales

2,257.7

+ 2.6 %

2,200.3

thereof hardware sales(1)

535.1

+ 5.1 %

508.9

EBITDA

458.6(2)

508.6(3)

EBIT

345.7(2)

396.6(3)

  1. Hardware sales incl. small amount of other sales
  2. Including one-off expenses for integration projects (EBITDA and EBIT effect: € -0.7 million)
  3. Including one-off expenses for integration projects (EBITDA and EBIT effect: € -3.8 million)
  • 9.8 %
  • 12.8 %

Quarterly development; change over prior-year quarter

in € million

Q4 2019

Q1 2020

Q2 2020

Q3 2020

Q3 2019

Change

Sales

938.3

933.7

933.5

925.6

916.3

+ 1.0%

thereof service sales

742.7

747.8

749.1

760.8

748.5

+ 1.6%

thereof hardware sales(1)

195.6

185.9

184.4

164.8

167.8

-1.8%

EBITDA

178.0(2)

164.8(3)

166.5(4)

127.3(5)

168.2(6)

-24.3%

EBIT

139.4(2)

128.2(3)

129.7(4)

87.8(5)

132.0(6)

-33.5%

  1. Hardware sales incl. small amount of other sales
  2. Including one-off expenses for integration projects (EBITDA and EBIT effect: € +0.6 million from reversal of provisions)
  3. Including one-off expenses for integration projects (EBITDA and EBIT effect: € -0.3 million)
  4. Including one-off expenses for integration projects (EBITDA and EBIT effect: € -0.1 million)
  5. Including one-off expenses for integration projects (EBITDA and EBIT effect: € -0.3 million)
  6. Including one-off expenses for integration projects (EBITDA and EBIT effect: € -1.5 million)

8

Multi-period overview: Development of key sales and earnings figures

9M 2016

9M 2017

9M 2018

9M 2019

9M 2020

in € million

(IAS 18)

(IAS 18)

(IFRS 15)

(IFRS 16)

Sales

1,790.7

1,975.8

2,683.4

2,709.2

2,792.8

thereof service sales

1,721.1

1,882.7

2,136.4

2,200.3

2,257.7

thereof hardware sales(1)

69.6

93.1

547.0

508.9

535.1

EBITDA

288.3

361.9

521.8(2)

508.6(3)

458.6(4)

EBITDA margin

16.1%

18.3%

19.4%

18.8%

16.4%

EBIT

280.3

339.3

401.1(2)

396.6(3)

345.7(4)

EBIT margin

15.7%

17.2%

14.9%

14.6%

12.4%

  1. Hardware sales incl. small amount of other sales
  2. Including one-off expenses for integration projects (EBITDA and EBIT effect: € -12.4 million)
  3. Including one-off expenses for integration projects (EBITDA and EBIT effect: € -3.8 million)
  4. Including one-off expenses for integration projects (EBITDA and EBIT effect: € -0.7 million)

FORE WORD

IN T ERIM FIN AN C IA L S TAT E MENT S

FIN A N CI AL C A LEND AR / I MP RIN T

9

I N T E R I M M A N A G E M E N T RE P O R T

Development of the Business Access segment

Despite the expiry in fiscal 2019 of services which 1&1 Versatel had previously provided for the broadband customers of 1&1 Drillisch, acquired in 2017, sales and earnings in the Business Access segment were noticeably improved.

Segment sales in the first nine months of 2020, for example, rose by 4.0% from € 352.5 million to

  • 366.6 million. There was even stronger growth in segment EBITDA, which improved by 8.9% from
  • 105.0 million to € 114.3 million. These figures include positive effects from increased telephony (voice) business as a result of the coronavirus pandemic, which led to an additional € +3.9 million in sales and
  • +1.6 million in EBITDA. There was an opposing effect in the segment's project business, where delays in tendering and ordering are currently being felt.

Without consideration of the aforementioned services provided in the previous year, like-for-likesales rose by 7.4% and like-for-likeEBITDA by 13.5% or - additionally adjusted for the above mentioned positive pandemic effect - by 6.2% (sales) and 11.9% (EBITDA).

Despite high writedowns for network infrastructure, Segment EBIT improved from € -43.0million in the previous year to € -34.6 million.

Key sales and earnings figures in the Business Access segment (in € million)

Sales

366.6

+ 4.0 %

352.5

EBITDA

114.3

+ 8.9 %

105.0

EBIT

-34.6

-43.0

Quarterly development; change over prior-year quarter

in € million

Q4 2019

Q1 2020

Q2 2020

Q3 2020

Q3 2019

Change

Sales

124.1

118.7

122.8

125.1

118.2

+ 5.8%

EBITDA

42.2

35.2

39.7

39.4

34.9

+ 12.9%

EBIT

-8.2

-14.5

-10.7

-9.4

-14.2

Multi-period overview: Development of key sales and earnings figures

9M 2016

9M 2017

9M 2018

9M 2019

9M 2020

in € million

(IAS 18)

(IAS 18)

(IFRS 15)

(IFRS 16)

Sales

383.8

325.8

334.6

352.5

366.6

EBITDA

89.8

62.1

43.6

105.0

114.3

EBITDA margin

23.4%

19.1%

13.0%

29.8%

31.2%

EBIT

-4.2

-29.1

-52.5

-43.0

-34.6

EBIT margin

-

-

-

-

-

9M 2020

9M 2019

10

Development of the Consumer Applications segment

The number of pay accounts (fee-based contracts) in the Consumer Applications segment rose by 90,000 to 2.35 million in the first nine months of 2020. Ad-financedfree accounts increased by

  1. million to 38.82 million. The total number of Consumer Applications accounts therefore increased by
  1. million to 41.17 million. The further strong rise in pay accounts in the third quarter of 2020 also results from contracts concluded during the coronavirus lockdown but not included until later in the contract figures - after a test phase granted to customers.

Development of Consumer-Applications accounts in the first nine months of 2020

in million

Sept. 30, 2020

Dec. 31, 2019

Change

Consumer Applications, total accounts

41.17

39.85

+ 1.32

thereof with Premium Mail subscription

1.61

1.54

+ 0.07

thereof with Value-Added subscription

0.74

0.72

+ 0.02

thereof free accounts

38.82

37.59

+ 1.23

Development of Consumer-Applications accounts in the third quarter of 2020

in million

Sept. 30, 2020

June 30, 2020

Change

Consumer Applications, total accounts

41.17

40.82

+ 0.35

thereof with Premium Mail subscription

1.61

1.57

+ 0.04

thereof with Value-Added subscription

0.74

0.74

0.00

thereof free accounts

38.82

38.51

+ 0.31

In the first nine months of 2020, operations in the Consumer Applications segment continued to focus on the repositioning and reconstruction of the GMX und WEB.DE portals, as well as the simultaneous establishment of data-driven business models. In addition to the further increase in customer accounts, this transformation is already being reflected in initial successes in the segment's key financial figures - although these were overshadowed, especially in the second quarter and to some extent in the third quarter of 2020, by a decline in the online advertising market due to the marked restraint of many advertisers during the coronavirus pandemic. The loss of marketing business caused by the pandemic impacted sales by € -4.8 million and earnings by € -3.6 million in total during the first nine months of 2020.

All in all, sales of the Consumer Applications segment improved by 1.5% from € 178.2 million

(€ 184.5 million reported prior-year figure) to € 180.9 million. It should be noted that for this key figure, third-party marketing revenues were changed from gross to net presentation at the beginning of 2020. This change was necessitated by the altered contractual terms of newly concluded agreements with third-party marketing partners. A comparison of segment revenue on a net basis and after adjustment of the above mentioned pandemic-related negative sales effect (€ -4.8 million) reveals an increase in total like-for-likesales of 4.2%.

Sales in the segment's core business of pay accounts and the marketing of ad space on its own portals improved by 1.9% from € 174.3 million to € 177.6 million. Adjusted for the pandemic-relatedsales effect, like-for-like sales in the segment's core business rose by 4.6%.

Sales in the field of third-partymarketing amounted to € 3.3 million net - compared to a net amount of € 3.9 million in the previous year.

FORE WORD

IN T ERIM FIN AN C IA L S TAT E MENT S

FIN A N CI AL C A LEND AR / I MP RIN T

11

I N T E R I M M A N A G E M E N T RE P O R T

Segment EBITDA of € 69.5 million was not affected by the change to net disclosure but was slightly below the prior-year figure (€ 70.6 million) due to the above mentioned pandemic-related negative effects on earnings (€ -3.6 million). Adjusted for this effect, like-for-likeEBITDA improved by 3.5% in the first nine months, whereby the third quarter of 2020 was affected by changes in the mix of advertising formats and environments requested by advertisers.

Due in particular to increased depreciation and amortization, as well as the negative impact of the coronavirus pandemic, segment EBIT of € 54.4 million was also down on the previous year (€ 58.2 million).

Key sales and earnings figures in the Consumer Applications segment (in € million)

Sales(1)

180.9

+ 1.5 %

9M 2020

thereof pay accounts/

178.2 (184.5)

9M 2019

177.6

+ 1.9 %

portal marketing

174.3

thereof third-party

3.3

- 15.4 %

marketing

3.9 (10.2)

EBITDA

69.5

- 1.6 %

70.6

EBIT

54.4

- 6.5 %

58.2

  1. Sales in 2019 after changing from gross to net presentation of third-party marketing revenues in 2020; the gross amount disclosed in 2019 is shown in brackets

Quarterly development; change over prior-year quarter

in € million

Q4 2019

Q1 2020

Q2 2020

Q3 2020

Q3 2019

Change

Sales(1)

69.1 (70.6)

60.8

58.9

61.2

58.7 (60.7)

+ 4.3%

thereof pay

accounts/portal

67.9

59.7

57.8

60.1

57.8

+ 4.0%

marketing

thereof third-party

1.2 (2.7)

1.1

1.1

1.1

0.9 (2.9)

+ 22.2%

marketing

EBITDA

33.1

23.3

23.7

22.5

23.3

-3.4%

EBIT

27.7

18.4

18.6

17.4

19.0

-8.4%

  1. Sales in the quarters of the previous year after changing from gross to net presentation of third-party marketing revenues in 2020; the gross amount disclosed in 2019 is shown in brackets

Multi-period overview: Development of key sales and earnings figures

9M 2016

9M 2017

9M 2018

9M 2019

9M 2020

in € million

(IAS 18)

(IAS 18)

(IFRS 15)

(IFRS 16)

Sales(1)

205.8

201.8

203.9

178.2 (184.5)

180.9

thereof pay

accounts/portal

195.1

189.2

182.8

174.3

177.6

marketing

thereof third-party

10.7

12.6

21.1

3.9 (10.2)

3.3

marketing

EBITDA

88.5

84.7

79.9

70.6

69.5

EBITDA margin

43.0%

42.0%

39.2%

39.6%

38.4%

EBIT

79.1

76.0

70.8

58.2

54.4

EBIT margin

38.4%

37.7%

34.7%

32.7%

30.1%

(1) Sales in 2019 after changing from gross to net presentation of third-party marketing revenues in 2020;

the gross amount disclosed in 2019 is shown in brackets; 2016 - 2018 reported unchanged on a gross statement

12

9M 2020

9M 2019

Development of the Business Applications segment

Due in part to time-limited discounted offers for new customers during the coronavirus lockdown, the number of fee-basedBusiness Applications contracts was increased by 230,000 contracts in the first nine months of 2020. This growth resulted from 110,000 new contracts in Germany and 120,000 abroad. As a result, the total number of contracts rose to 8.38 million.

Development of Business Applications contracts in the first nine months of 2020

in million

Sept. 30, 2020

Dec. 31, 2019

Change

Business Applications, total contracts

8.38

8.15

+ 0.23

thereof in Germany

4.01

3.90

+ 0.11

thereof abroad

4.37

4.25

+ 0.12

Development of Business Applications contracts in the third quarter of 2020

in million

Sept. 30, 2020

June 30, 2020

Change

Business Applications, total contracts

8.38

8.32

+ 0.06

thereof in Germany

4.01

3.98

+ 0.03

thereof abroad

4.37

4.34

+ 0.03

In the first nine months of 2020, sales of the Business Applications segment rose by 6.2% from

  • 665.7 million in the previous year to € 707.3 million. This increase in revenue was attributable in part to the lower-margin and volatile domain parking business of the Sedo brand, which grew more strongly than in the weak prior-year period and accounted for 2.9 percentage points of this growth.

Segment EBITDA improved by 7.5% from € 236.8 million to € 254.6 million. Segment EBITDA contains marketing expenses of € 63.2 million (prior year: € 70.8 million, of which € 15.1 million for rebranding).

Due to lower depreciation and amortization charges (scheduled writedowns and PPA), as well as the lack of rebranding measures, segment EBIT rose by 14.2 % from € 156.8 million to € 179.0 million.

Key sales and earnings figures in the Business Applications segment (in € million)

Sales

707.3

+ 6.2 %

665.7

EBITDA

254.6

+ 7.5 %

236.8

EBIT

179.0

+ 14.2 %

156.8

Quarterly development; change over prior-year quarter

in € million

Q4 2019

Q1 2020

Q2 2020

Q3 2020

Q3 2019

Change

Sales

224.9

237.0

234.6

235.7

222.4

+ 6.0%

EBITDA

69.4

76.9

90.9

86.8

88.5

-1.9%

EBIT

44.6(1)

51.6

65.8

61.6

61.6

0.0%

(1) Excluding trademark writeups Strato (EBIT effect: € +19.4 million)

FORE WORD

IN T ERIM FIN AN C IA L S TAT E MENT S

FIN A N CI AL C A LEND AR / I MP RIN T

13

I N T E R I M M A N A G E M E N T RE P O R T

Multi-period overview: Development of key sales and earnings figures

9M 2016

9M 2017

9M 2018

9M 2019

9M 2020

in € million

(IAS 18)

(IAS 18)

(IFRS 15)

(IFRS 16)

Sales

479.2

557.2

634.7

665.7

707.3

EBITDA

145.4

186.4

233.9

236.8

254.6

EBITDA margin

30.3%

33.5%

36.9%

35.6%

36.0%

EBIT

113.2

143.7

168.4

156.8

179.0

EBIT margin

23.6%

25.8%

26.5%

23.6%

25.3%

14

Position of the Group

Earnings position

In the first nine months of 2020, the total number of fee-basedcustomer contracts in the United Internet Group was raised by 670,000 to 25.41 million contracts. At the same time, ad-financed free accounts rose by 1.23 million to 38.82 million.

Consolidated sales grew by 3.4% in the first nine months of 2020, from € 3,855.0 million in the previous year to € 3,984.7 million. Growth was impeded by the effects of the coronavirus pandemic. These effects had a particularly negative impact on the Consumer Access and Consumer Applications segments. There were opposing positive effects in the Business Access segment. Adjusted for these pandemic effects of € -17.0 million in total, like-for-likesales rose by 3.8%. All four business segments contributed to this revenue growth, whereby hardware sales to existing customers in the Consumer Access segment were below target in the third quarter of 2020 (due to fewer tariff changes). The sale of devices is generally a low-margin business as customers pay no or only a low one-off price when they sign a contract or change tariffs and the device costs are refinanced via higher tariff prices. This business fluctuates seasonally and depends heavily on the attractiveness of new devices and manufacturers' model cycles.

Sales outside Germany improved by 6.4% from € 322.2 million in the previous year to € 342.9 million in in the first nine months of 2020.

Due in particular to the increased use of hardware and the additional burdens on earnings from regulatory decisions, as well as extra costs for wholesale mobile communication purchases due to the coronavirus pandemic and the price increase for using Telefónica's network capacity, there was a disproportionately strong increase in cost of sales from € 2,546.9 million (66.1% of sales) in the previous year to € 2,686.6 million (67.4% of sales). There was a corresponding decline in the gross margin from 33.9% to 32.6%. As a result, gross profit decreased by 0.8% from € 1,308.1 million to € 1,298.1 million.

There was a proportionately slower increase in sales and marketing expenses from € 556.4 million (14.4% of sales) in the previous year to € 569.4 million (14.3% of sales). Administrative expenses fell from € 154.7 million (4.0% of sales) to € 151.1 million (3.8% of sales).

Multi-period overview: Development of key cost items

9M 2016

9M 2017

9M 2018(1)

9M 2019(1)

9M 2020

in € million

(IAS 18)

(IAS 18)

(IFRS 15)

(IFRS 16)

Cost of sales

1,847.0

1,924.5

2,501.0

2,546.9

2,686.6

Cost of sales ratio

65.3%

64.0%

65.8%

66.1%

67.4%

Gross margin

34.7%

36.0%

34.2%

33.9%

32.6%

Selling expenses

392.5

433.8

510.5

556.4

569.4

Selling expenses ratio

13.9%

14.4%

13.4%

14.4%

14.3%

Administrative expenses

135.8

131.8

163.2

154.7

151.1

Administrative expenses ratio

4.8%

4.4%

4.3%

4.0%

3.8%

(1 ) 2018 and 2019 adjusted as part of the financial statements 2019

There was a significant 5.0% decline in consolidated EBITDA to € 896.4 million in the first nine months of 2020 compared to the prior-year figure (€ 944.0 million including extraordinary income of € 21.5 million from the sale of shares in virtual minds).

FORE WORD

IN T ERIM FIN AN C IA L S TAT E MENT S

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15

I N T E R I M M A N A G E M E N T RE P O R T

Apart from the extraordinary income in the previous year, this decline was mainly due to the price increase introduced by Telefónica Germany on July 1, 2020 for the use of Telefónica's network capacity. 1&1 Drillisch believes that the wholesale prices charged by Telefónica as of July 1, 2020 do not comply with the voluntary commitments of Telefónica as part of the European Commission's clearance of its merger with E-Plus, as well as the MBA MVNO agreement. 1&1 Drillisch will take the necessary steps to safeguard its rights (including possible claims for damages) in order to seek a review of the unjustified portion of the invoiced price increase ("excessive MBA invoicing").

In addition to this excessive MBA invoicing by an amount of € 35.4 million, earnings of 1&1 Drillisch were burdened by negative effects from regulatory decisions of the EU on SMS tariffs (since May 15, 2019) and of Germany's Federal Network Agency regarding subscriber line charges (since July 1, 2019) with a total impact of € -13.7 million (prior year: € -1.0 million). Moreover, the initial costs for the construction of our own 5G mobile communications network rose to € -8.4 million (prior year: € -2.5 million). By contrast, the one-off costs for integration projects declined to € -0.7 million (prior year: € -3.8 million). On top of this, the coronavirus pandemic also burdened earnings by a total of € -19.7 million in the first nine months of 2020. The negative impact on both the Consumer Access and Consumer Applications segments was offset in part by slightly positive effects in the Business Access segment. Adjusted for the extraordinary income in the previous year, the excessive MBA invoicing, and the aforementioned negative effects, like-for-likeEBITDA was 4.8% above the prior-year figure.

Consolidated EBIT of € 541.6 million was similarly influenced by these negative effects and also fell well short of the prior-year figure (€ 587.6 million including the aforementioned extraordinary income). Adjusted for the extraordinary income in the previous year, excessive MBA invoicing, and the negative effects, like-for-likeEBIT was 8.0% above the prior-year figure.

Key sales and earnings figures of the Group (in € million)

3,984.7

Sales+ 3.4 % 3,855.0

EBITDA

896.4(1)

- 5.0 %

944.0(2)

EBIT

541.6(1)

- 7.8 %

587.6(2)

  1. Including one-off expenses for integration projects (EBITDA and EBIT effect: € -0.7 million)
  2. Including one-off expenses for integration projects (EBITDA and EBIT effect: € -3.8 million);
    including extraordinary income from the sale of virtual minds shares (EBITDA and EBIT effect: € +21.5 million)

Quarterly development; change over prior-year quarter

in € million

Q4 2019

Q1 2020

Q2 2020

Q3 2020

Q3 2019

Change

Sales

1,339.1

1,329.4

1,328.5

1,326.8

1,298.5

+ 2.2%

EBITDA

321.7(1)

300.8(2)

319.7(3)

275.9(4)

314.0(5)

-12.1%

EBIT

204.1(1)

184.2(2)

201.2(3)

156.3(4)

196.8(5)

-20.6%

  1. Including one-off expenses for integration projects (EBITDA and EBIT effect: € +0.6 million);
    excluding trademark writeups Strato (EBIT effect: € +19.4 million)
  2. Including one-off expenses for integration projects (EBITDA and EBIT effect: € -0.3 million)
  3. Including one-off expenses for integration projects (EBITDA and EBIT effect: € -0.1million)
  4. Including one-off expenses for integration projects (EBITDA and EBIT effect: € -0.3 million)
  5. Including one-off expenses for integration projects (EBITDA and EBIT effect: € -1.5 million)

9M 2020

9M 2019

16

Multi-period overview: Development of key sales and earnings figures

9M 2016

9M 2017

9M 2018

9M 2019

9M 2020

in € million

(IAS 18)

(IAS 18)

(IFRS 15)

(IFRS 16)

Sales

2,828.1

3,008.2

3,800.4

3,855.0

3,984.7

EBITDA

610.6

684.1(1)

874.6(2)

944.0(3)

896.4(4)

EBITDA margin

21.6%

22.7%

23.0%

24.5%

22.5%

EBIT

466.0

511.2(1)

582.8(2)

587.6(3)

541.6(4)

EBIT margin

16.5%

17.0%

15.3%

15.2%

13.6%

  1. Without extraordinary income from revaluation of Drillisch shares (EBITDA and EBIT effect: € +303.0 million) and revaluation of ProfitBricks shares
    (EBITDA and EBIT effect: € +16.1 million), as well as without M&A transaction costs (EBITDA and EBIT effect: € -17.1 million),
  2. Including one-off expenses for integration projects (EBITDA and EBIT effect: € -12.4 million)

(2) Including one-off expenses for integration projects (EBITDA and EBIT effect: € -3.8 million);

including extraordinary income from the sale of virtual minds shares (EBITDA and EBIT effect: € +21.5 million)

(4) Including one-off expenses for integration projects (EBITDA and EBIT effect: € -0.7 million)

Earnings before taxes (EBT) decreased from € 519.2 million to € 501.7 million in the first nine months of 2020. In the previous year, EBT included extraordinary income from the sale of shares in virtual minds (€ +21.5 million) as well as an opposing effect from non-cash impairment charges on Tele Columbus shares (€ -30.9 million). Adjusted for these extraordinary prior-year effects, operating EBT decreased by 5.1% from € 528.6 million in the previous year to € 501.7 million. This decline was mainly due to the price increase for the use of Telefónica's network capacity and the negative effects from regulation issues, as well as by the coronavirus pandemic and the initial costs for the construction of the Company's own 5G mobile communications network.

There was a corresponding decrease in earnings per share (EPS) from € 1.35 in the previous year to

  • 1.33. EPS in the previous year was also influenced by the extraordinary income (EPS effect: € +0.11) and the Tele Columbus impairment charges (EPS effect: € -0.15). Adjusted for these effects, and due to the above mentioned reasons, operating EPS fell by 4.3% from € 1.39 to € 1.33 and operating EPS before PPA amortization by 4.5% from € 1.76 to € 1.68.

Financial position

Based on net income of € 331.1 million (prior year: € 357.6 million), operative cash flow of

€ 690.5 million in the first nine months of 2020 also fell short of the prior-year figure (€ 725.8 million).

Cash flow from operating activities in the first nine months of 2020 increased from € 476.0 million in the previous year to € 717.7 million. This increase was due to a cash outflow after the balance sheet date for wholesale services received in the first nine months of 2020 and - with an opposing effect - a capital tax payment and out-of-period tax payments in the previous year.

Cash flow from investing activities amounted to € 349.2 million in the reporting period (prior year:

  • 69.6 million). This resulted mainly from disbursements of € 356.9 million for capital expenditures,
  • 165.0 million of which for the first five-year extension phase of the existing MBA MVNO agreement with Telefónica which began on July 1, 2020. Cash flow from investing activities in the previous year was dominated by disbursements of € 165.9 million for capital expenditures and - with an opposing effect - proceeds from the sale of associated companies (mainly from the sale of shares in virtual minds) amounting to € 35.6 million, as well as proceeds from the sale of financial assets (especially the partial sale of Rocket Internet shares) amounting to € 65.5 million.

United Internet's free cash flow is defined as cash flow from operating activities, less capital expenditures, plus payments from disposals of intangible assets and property, plant, and equipment.

FORE WORD

IN T ERIM FIN AN C IA L S TAT E MENT S

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I N T E R I M M A N A G E M E N T RE P O R T

Due to the strong increase in capital expenditures (especially the payment of € 165.0 million for the extension phase of the MBA MVNO agreement), free cash flow fell from € 398.7 million in the previous year (excluding a capital gains tax payment of € 56.2 million and without tax payments for fiscal year 2017 and previous years of € 27.2 million) to € 365.4 million. Since the initial application of the accounting standard IFRS 16 in fiscal year 2019, the redemption share of lease liabilities is disclosed in cash flow from financing activities. After deducting the cash flow item "Redemption of finance lease liabilities and rights of use", free cash flow fell from € 323.7 million in the previous year (without the above mentioned tax payments) to € 284.3 million in the first nine months of 2020. Due to closing-date effects, free cash flow for the first nine months of 2020 was around € 100 million higher as the cash outflow for certain advance services received was not until after the balance sheet date.

Cash flow from financing activities in the first nine months of 2020 was dominated by the net repayment of loans totaling € 251.6 million (prior year: € 199.2 million), the dividend payment of €

93.6 million (prior year: € 10.0 million), and the redemption of lease liabilities of € 81.1 million (prior year: € 75.0 million).

As of September 30, 2020, cash and cash equivalents amounted to € 45.5 million - compared to € 49.5 million on the same date last year.

Development of key cash flow figures

in € million

Sept. 30, 2020

Sept. 30, 2019

Change

Operative cash flow

690.5

725.8

-35.3

Cash flow from operating activities

717.7

476.0

+ 241.7

Cash flow from investing activities

-349.2

-69.6

-279.6

Free cash flow(1)

284.3(2)

323.7(3)

-39.4

Cash flow from financing activities

-441.2

-415.6

-25.6

Cash and cash equivalents on September 30

45.5

49.5

-4.0

  1. Free cash flow is defined as cash flow from operating activities, less capital expenditures, plus payments from disposals of intangible assets and property, plant and equipment
  2. 2020 including the repayment portion of lease liabilities, which have been reported under cash flow from financing activities since the fiscal year 2019 (IFRS 16)
  3. 2019 without capital gains tax payment (€ 56.2 million) and without tax payments from fiscal year 2017 and previous years (€ 27.2 million) and including the repayment portion of lease liabilities, which have been reported under cash flow from financing activities since the fiscal year 2019 (IFRS 16)

18

Multi-period overview: Development of key cash flow figures

9M 2016

9M 2017

9M 2018

9M 2019

9M 2020

in € million

(IAS 18)

(IAS 18)

(IFRS 15)

(IFRS 16)

Operative cash flow

461.8

461.1

659.3

725.8

690.5

Cash flow from operating activities

433.2(2)

503.5(3)

326.7

476.0

717.7

Cash flow from investing activities

-370.7

-805.0

-268.9

-69.6

-349.2

Free cash flow(1)

320.1(2)

352.1(3)

181.7(4)

323.7(5)

284.3(6)

Cash flow from financing activities

49.3

269.5

-235.5

-415.6

-441.2

Cash and cash equivalents on September 30

87.7

134.7

61.3

49.5

45.5

  1. Free cash flow is defined as cash flow from operating activities, less capital expenditures, plus payments from disposals of intangible assets and property, plant and equipment
  2. 2016 without consideration of an income tax payment originally planned for the fourth quarter of 2015 (€ 100.0 million)
  3. 2017 without consideration of a capital gains tax refund originally planned for the fourth quarter of 2016 (€ 70.3 million)
  4. 2018 without tax payment from fiscal year 2016 (€ 34.7 million)
  5. 2019 without capital gains tax payment (€ 56.2 million) and without tax payments from fiscal year 2017 and previous years (€ 27.2 million) and including the repayment portion of lease liabilities, which have been reported under cash flow from financing activities since the fiscal year 2019 (IFRS 16)
  6. 2020 including the repayment portion of lease liabilities, which have been reported under cash flow from financing activities since the fiscal year 2019 (IFRS 16)

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I N T E R I M M A N A G E M E N T RE P O R T

Asset position

The balance sheet total increased from € 9.086 billion as of December 31, 2019 to € 9.164 billion on September 30, 2020.

Development of current assets

in € million

Sept. 30, 2020

Dec. 31, 2019

Change

Cash and cash equivalents

43.5

117.6

-74.1

Trade accounts receivable

356.6

346.0

+ 10.6

Contract assets

539.3

507.8

+ 31.5

Inventories

68.7

79.3

-10.6

Prepaid expenses

265.3

237.0

+ 28.3

Other financial assets

50.4

48.1

+ 2.3

Income tax claims

17.5

21.5

-4.0

Other non-financial assets

17.9

13.8

+ 4.1

Total current assets

1,359.3

1,371.2

-11.9

Current assets decreased slightly from € 1,371.2 million as of December 31, 2019 to € 1,359.9 million on September 30, 2020. Due to the redemption of bank liabilities and the dividend payment, cash and cash equivalents disclosed under current assets decreased from € 117.6 million to € 43.5 million. Trade accounts receivable rose from € 346.0 million to € 356.6 million due to closing-date effects. In line with customer growth, the item contract assets rose from € 507.8 million to € 539.3 million and includes current claims against customers due to accelerated revenue recognition from the application of IFRS 15. Inventories decreased from € 79.3 million to € 68.7 million due to closing-date effects. By contrast, current prepaid expenses increased from € 237.0 million to € 265.3 million and mainly comprise the short-term portion of expenses relating to contract acquisition and contract fulfillment according to IFRS 15. Other financial assets, income tax claims and other non-financialassets remained virtually unchanged.

Development of non-current assets

in € million

Sept. 30, 2020

Dec. 31, 2019

Change

Shares in associated companies

185.9

196.0

-10.1

Other financial assets

71.4

90.4

-19.1

Property, plant and equipment

1,207.4

1,118.2

+ 89.2

Intangible assets

2,229.8

2,167.4

+ 62.4

Goodwill

3,608.9

3,616.5

-7.6

Trade accounts receivable

55.6

57.7

-2.1

Contract assets

188.6

174.3

+ 14.3

Prepaid expenses

235.1

284.3

-49.1

Deferred tax assets

22.3

10.4

+ 11.8

Total non-current assets

7,805.0

7,715.2

+ 89.8

Non-currentassets rose from € 7,715.2 million as of December 31, 2019 to € 7,805.0 million on September 30, 2020. Due in particular to the subsequent valuation of Tele Columbus shares, shares in associated companies decreased from € 196.0 million to € 185.9 million. As a result of the subsequent valuation of derivatives, long-termother financial assets fell from € 90.4 million to € 71.4 million. The increase in property, plant, and equipment from € 1,118.2 million to € 1,207.4 million was mainly the result of additions from new long-term leases and network infrastructure. Due in particular to the extension of the MBA MVNO agreement, intangible assets increased from € 2,167.4 million to

€ 2,229.8 million. The item contract assets rose in line with customer growth from € 174.3 million to

20

  • 188.6 million and includes non-current claims against customers due to accelerated revenue recognition from the application of IFRS 15. Mainly as a result of reclassifications to current expenses, non-currentprepaid expenses decreased from € 284.3 million to € 235.1 million and mainly include the long-term portion of expenses relating to contract acquisition and contract fulfillment, as well as prepayments in connection with long-term purchasing agreements. Deferred tax assets rose from
  • 10.7 million to € 22.3 million. Goodwill and trade accounts receivable were largely unchanged.

Development of current liabilities

in € million

Sept. 30, 2020

Dec. 31, 2019

Change

Trade accounts payable

507.7

475.5

+ 32.2

Liabilities due to banks

438.0

243.7

+ 194.3

Income tax liabilities

107.9

91.7

+ 16.2

Contract liabilities

149.8

149.9

-0.1

Other accrued liabilities

12.1

18.4

-6.3

Other financial liabilities

266.9

239.4

+ 27.5

Other non-financial liabilities

46.1

50.3

-4.2

Total current liabilities

1,528.6

1,269.0

+ 259.6

Current liabilities rose from € 1,269.0 million as of December 31, 2019 to € 1,528.6 million on September 30, 2020. Due to closing-date effects, current trade accounts payable increased from

  • 475.5 million to € 507.7 million. There was an increase in current bank liabilities following a reclassification of non-current liabilities (in accordance with their maturity). Income tax liabilities rose from € 91.7 million to € 107.9 million. Due in particular to marketing activities, current other financial liabilities rose from € 239.4 million to € 266.0 million. The item current contract liabilities, which mainly includes payments received from customer contracts for which the performance has not yet been completely rendered, as well as the items current other accrued liabilities, and current other non-financialliabilities were all largely unchanged.

Development of non-current liabilities

in € million

Sept. 30, 2020

Dec. 31, 2019

Change

Liabilities due to banks

1,048.7

1,494.6

-445.9

Deferred tax liabilities

333.6

351.8

-18.2

Trade accounts payable

8.1

6.1

+ 2.0

Contract liabilities

32.2

34.9

-2.7

Other accrued liabilities

65.4

67.6

-2.3

Other financial liabilities

1,311.9

1,247.5

+ 64.4

Total non-current liabilities

2,799.9

3,202.6

-402.7

Non-currentliabilities declined from € 3,202.6 million as of December 31, 2019 to € 2,799.9 million on September 30, 2020. This was due in particular to long-termbank liabilities, which were reduced significantly from € 1,494.6 million to € 1,048.7 million following the repayment of loans and reclassifications to current liabilities. Deferred tax liabilities decreased from € 351.8 million to

  • 333.6 million. The increase in non-currentother financial liabilities from € 1,246.9 million to
  • 1,316.0 million was mainly a result of new long-term rental agreements. Non-currenttrade accounts payable, non-currentcontract liabilities (which mainly include payments received from customer contracts for which the performance has not yet been completely rendered), and non-currentother accrued liabilities were all largely unchanged.

FORE WORD

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21

I N T E R I M M A N A G E M E N T RE P O R T

Development of equity

in € million

Capital stock

Capital reserves

Accumulated profit

Treasury shares

Revaluation reserves

Currency translation adjustment

Equity attributable to shareholders of the parent company

Non-controlling interests

Total equity

Sept. 30, 2020

Dec. 31, 2019

Change

194.0

205.0

-11.0

2,317.0

2,643.9

-327.0

2,148.8

1,993.9

+ 155.0

-212.7

-548.4

+ 335.7

25.0

25.2

-0.2

-20.6

-9.6

-11.0

4,451.4

4,310.0

+ 141.4

384.3

304.8

+ 79.5

4,835.7

4,614.7

+ 221.0

The Group's equity capital rose from € 4,614.7 million as of December 31, 2019 to € 4,835.7 million on September 30, 2020. The equity ratio increased accordingly from 50.8% to 52.8%.

Based on the authorization granted by the Annual Shareholders' Meeting on May 18, 2017 regarding the acquisition and use of treasury shares, and with the approval of the Supervisory Board, the Management Board of United Internet AG resolved on March 12, 2020 to cancel 11,000,000 treasury shares and to reduce the capital stock of United Internet AG by € 11,000,000, from € 205,000,000 to € 194,000,000. The number of shares issued decreased correspondingly by 11,000,000, from 205,000,000 to 194,000,000 shares. Issued shares continue to represent a notional share of capital stock of € 1 each. The cancellation of treasury shares is aimed at raising the percentage stake of United Internet shareholders. On completion of the capital reduction, the Company's capital stock therefore returned to the level prior to the capital increase for the Versatel acquisition in 2014. Following the cancellation of these 11,000,000 shares, United Internet still holds 6,338,513 treasury shares - compared to 17,338,513 as of December 31, 2019.

With the approval of the Supervisory Board, the Management Board of United Internet AG resolved on April 1, 2020 to launch a new share buyback program. In the course of this share buyback program up to 5,000,000 shares of the Company (corresponding to approx. 2.58 % of the capital stock of

  • 194,000,000) were to be bought back via the stock exchange. The Company thus also utilized the authorization issued by the Annual Shareholders' Meeting of May 18, 2017. The volume of the share buyback program amounted to € 150 million in total. The program was launched on April 3, 2020 and was to last until August 31, 2020 at the latest. On April 30, 2020, the Management Board of
    United Internet AG resolved to suspend this share buyback program with effect as of the end of the trading day (April 30, 2020). United Internet AG reserved the right to resume or cancel the share buyback program at any time. In the course of this share buyback program, the Company bought back 430,624 treasury shares for a total of € 12.2 million and thus held a total of 6,769,137 treasury shares (approx. 3.49 % of capital stock) as of April 30, 2020, the date on which the program was suspended, and also at the end of the reporting period on September 30, 2020.

22

Despite the dividend payment of € 93.6 million and the contractually agreed payment of € 165.0 million to Telefónica Germany in the third quarter of 2020 for the first five-year extension phase of the MBA MVNO agreement beginning on July 1, 2020, the Group's net bank liabilities (i.e., the balance of bank liabilities and cash and cash equivalents) were reduced from € 1,620.8 million as of December 31, 2019 to € 1,443.2 million on September 30, 2020.

Multi-period overview: Development of key balance sheet items

Dec. 31,

Dec. 31,

Dec. 31,

Dec. 31,

Sept. 30,

2016

2017

2018

2019

2020

in € million

(IAS 18)

(IAS 18)

(IFRS 15)

(IFRS 16)

Total assets

4,073.7

7,605.2

8,173.8

9,086.4

9,164.3

Cash and cash equivalents

101.7

238.5

58.1

117.6

43.5

Shares in associated companies

755.5

418.0(1)

206.9(1)

196.0

185.9

Other financial assets

287.7

333.7(2)

348.1(2)

90.4(2)

71.4

Property, plant and equipment

655.0

747.4(3)

818.0

1,118.2(3)

1,207.4

Intangible assets

369.5

1,408.4(3)

1,244.6

2,167.4(4)

2,229.8

Goodwill

1,087.7

3,564.1(5)

3,612.6(5)

3,616.5

3,608.9

Liabilities due to banks

1,760.7

1,955.8(6)

1,939.1

1,738.4

1,486.7

Capital stock

205.0

205.0

205.0

205.0

194.0(7)

Equity

1,197.8

4,048.7(8)

4,521.5(8)

4,614.7

4,835.7

Equity ratio

29.4%

53.2%

55.3%

50.8%

52.8%

  1. Decrease due to takeover and consolidation of ProfitBricks and Drillisch (2017); decrease due to Tele Columbus impairment charges (2018)
  2. Increase due to subsequent valuation of shares in listed companies (2017); increase due to subsequent valuation of shares in listed companies (2018); decrease due to sale of Rocket Internet shares (2019)
  3. Increase due to Strato, ProfitBricks and Drillisch takeovers (2017); increase due to initial application of IFRS 16 (2019)
  4. Increase due to initial recognition of acquired 5G frequencies (2019)
  5. Increase due to Strato, ProfitBricks and Drillisch takeovers (2017); increase due to World4You takeover (2018)
  6. Increase due to Strato takeover and increased stakes in Drillisch and Tele Columbus (2017)
  7. Decrease due to withdrawal of treasury shares
  8. Increase due to consolidation effects in connection with the investment of Warburg Pincus in the Business Applications segment and takeover of Strato (2017); transitional effects from initial application of IFRS 15 (2018)

Management Board's overall assessment of the business situation

Despite an adverse macroeconomic environment, United Internet made further successful investments in new customer contracts and the expansion of existing customer relationships, and thus in sustainable growth, in the first nine months of 2020. As a result, the total number of fee-based customer contracts grew organically by a further 670,000 contracts to 25.41 million contracts.

In view of this strong customer growth, a 3.4% increase in sales, and EBITDA of -5.0%(like-for-like: +4.8%) compared to the previous year, United Internet made relatively good progress once again in the first nine months of 2020.

This performance once again highlights the benefits of United Internet's business model based predominantly on electronic subscriptions, with fixed monthly payments and contractually fixed terms. That ensures stable and predictable revenues and cash flows, offers protection against cyclical influences and provides the financial scope to grasp opportunities in new business fields and markets - organically or via investments and acquisitions.

With the sales and earnings figures achieved in the first nine months of 2020, as well as the investments made in sustainable corporate development, the Management Board believes that the Company is well placed for its further development.

FORE WORD

IN T ERIM FIN AN C IA L S TAT E MENT S

FIN A N CI AL C A LEND AR / I MP RIN T

23

I N T E R I M M A N A G E M E N T RE P O R T

Subsequent events

There were no significant events subsequent to the reporting date of September 30, 2020 which had a material effect on the financial position and performance of the Company or the Group nor affected its accounting and reporting.

Risk and opportunity report

The risk and opportunity policy of United Internet AG is based on the objective of maintaining and sustainably enhancing the Company's value by utilizing opportunities while at the same time recognizing and managing risks from an early stage in their development. The risk and opportunity management system regulates the responsible handling of those uncertainties which are always involved with economic activity.

Management Board's overall assessment of the Group's risk and opportunity position

The assessment of the overall level of risk is based on a consolidated view of all significant risk fields and individual risks, also taking account of their interdependencies.

There were no recognizable risks which directly jeopardized the United Internet Group as a going concern during the reporting period nor at the time of preparing this Interim Statement, neither from individual risk positions nor from the overall risk situation.

The main challenges at present are still the risk fields "Business development & innovations", "Information security", and "Litigation". The risk classification of the risk field "Organizational structure

  • decision-making",which was raised from low to moderate in the first quarter of 2020, could already be reduced to low again in the second quarter of 2020.

The further expansion of its risk management system enables United Internet to limit these and other risks to a minimum, where sensible, by implementing specific measures.

Compared with reporting on risks and opportunities in the Annual Financial Statements 2019, the other risk assessments remained unchanged in the first nine months of 2020.

Over the course of the fiscal year 2020 so far, the risk situation in the risk areas "Procurement market" and "Acts of God" has not changed significantly - despite the global spread of the coronavirus - compared to the annual financial statements 2019. Should the spread of the virus continue over a longer period, however, this may also have a negative impact on demand in the future, as well as on the usage and payment behavior of consumers and business owners, the purchase of pre-services (e.g. smartphones, routers, servers or network technology), or the health and fitness of employees, and thus ultimately on the performance of the United Internet Group. A precise risk assessment with regard to the duration and concrete effects of the coronavirus pandemic is not possible at present.

It is also impossible at present to make reliable statements about specific and lasting effects on the future sales and earnings figures of United Internet with regard to how the coronavirus pandemic may impact the usage behavior of customers in the further future, for example due to increased work from home.

24

Forecast report

Forecast for the fiscal year 2020

The United Internet subsidiary 1&1 Drillisch anticipates lower than expected sales of smartphones and tablets due to a reduced willingness among its existing customers to change tariffs. Consequently, United Internet updated its sales growth guidance for 2020 from approx. 4% to approx. 3% (prior- year sales € 5,194.1 million). It should be noted, however, that at the beginning of the year 1&1 Drillisch and United Internet had still anticipated that sales would merely remain unchanged from the previous year.

Moreover, as the sale of devices is an extremely low-margin business, this sales update has no impact on the Company's EBITDA forecast which can thus be confirmed at the unchanged level of € 1.180 billion.

This forecast is still subject to uncertainty, as an exact assessment of the duration and further effects of the coronavirus pandemic is not currently possible and the outcome of the current negotiations with Telefónica cannot be predicted.

Management Board's overall statement on the anticipated development

The Management Board of United Internet AG remains upbeat about its prospects for the future. Thanks to a business model based predominantly on electronic subscriptions, United Internet believes it is largely stable enough to withstand cyclical influences. And with the investments made over the past few years in customer relationships, new business fields and internationalization, as well as via acquisitions and investments, the Company has laid a broad foundation for its planned future growth.

At the time of preparing this Interim Statement, the Management Board of United Internet AG believes that the Company is on track to reach the sales and earnings guidance presented above in the section "Forecast for the fiscal year 2020".

Forward-looking statements

This Interim Statement contains forward-looking statements based on current expectations, assumptions, and projections of the Management Board of United Internet AG and currently available information. These forward-looking statements are subject to various risks and uncertainties and are based upon expectations, assumptions, and projections that may not prove to be accurate.

United Internet does not guarantee that these forward-looking statements will prove to be accurate and does not accept any obligation, nor have the intention, to adjust or update the forward-looking statements contained in this Interim Statement.

FORE WORD

IN T ERIM FIN AN C IA L S TAT E MENT S

FIN A N CI AL C A LEND AR / I MP RIN T

25

I N T E R I M M A N A G E M E N T RE P O R T

NOTES ON THE INTERIM STATEMENT

Information on the Company

United Internet AG ("United Internet") is a service company operating in the telecommunication and information technology sector with registered offices at Elgendorfer Strasse 57, 56410 Montabaur, Germany. The Company is registered at the district court of Montabaur under HRB 5762.

Significant accounting, measurement and consolidation principles

As was the case with the Consolidated Financial Statements as of December 31, 2019, the Interim Statement of United Internet AG as of September 30, 2020 was prepared in compliance with the International Financial Reporting Standards (IFRS) as applicable in the European Union (EU).

The Interim Statement does not constitute interim reporting as defined by IAS 34. With the exception of the mandatory new standards, the accounting and valuation principles applied in this Interim Statement comply with the methods applied in the previous year and should be read in conjunction with the Consolidated Financial Statements as of December 31, 2019.

Mandatory adoption of new accounting standards

The following standards are mandatory in the EU for the first time for fiscal years beginning on or after January 1, 2020:

Standard

Mandatory for fiscal years

Endorsed by EU

beginning on or after

Commission

IFRS 3

Amendment: Definition of a

January 1, 2020

No

Business

IFRS 7, IFRS 9, IAS 39

Interest Rate Benchmark Reform

January 1, 2020

Yes

IAS 1, IAS 8

Amendment: Definition of Material

January 1, 2020

Yes

In addition, the revised conceptual framework for IFRS standards also applies as of January 1, 2020. This contains revised definitions of assets and liabilities, as well as guidance on measurement and derecognition, presentation and disclosure.

There were no significant effects on this Interim Statement from the initial application of the new accounting standards.

26

Use of estimates and assumptions

The preparation of this Interim Statement requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the end of the reporting period. However, the uncertainty associated with these assumptions and estimates could lead to results which require material adjustments to the carrying amount of the asset or liability affected in future periods.

Use of business-relevant key financial performance indicators

In order to ensure the clear and transparent presentation of United Internet's business trend, the Company's annual and interim financial statements include key performance indicators (KPIs) - in addition to the disclosures required by International Financial Reporting Standards (IFRS) - such as EBITDA, the EBITDA margin, EBIT, the EBIT margin and free cash flow. Information on the use, definition and calculation of these KPIs is provided in the Annual Report 2019 of United Internet AG starting on page 49.

Insofar as required for clear and transparent presentation, the KPIs used by United Internet are adjusted for special items. Such special items usually refer solely to those effects capable of restricting the validity of the key financial performance indicators with regard to the Company's financial and earnings performance - due to their nature, frequency and/or magnitude. All special items are presented and explained for the purpose of reconciliation with the unadjusted financial figures in the relevant section of the financial statements.

Miscellaneous

This Interim Statement includes all material subsidiaries and associated companies.

The following company was merged with an existing Group company in the reporting period:

  • United Internet Service Holding GmbH, Montabaur, was merged with 1&1 Versatel GmbH, Düsseldorf.
    Shares in the following company were sold during the reporting period:
  • 1&1 Berlin Telecom Service GmbH, Berlin

This transaction had no material impact on the Group's financial position and performance.

FORE WORD

IN T ERIM FIN AN C IA L S TAT E MENT S

FIN A N CI AL C A LEND AR / I MP RIN T

27

I N T E R I M M A N A G E M E N T RE P O R T

Shares in the following associated company were sold during the reporting period:

  • ePages GmbH, Hamburg

The following companies were liquidated in the reporting period:

  • General Media Xervices GMX SL, Madrid, Spain
  • GMX Italia SRL, Milan, Italy

Otherwise, the consolidated group remained largely unchanged from that stated in the Consolidated Financial Statements as at December 31, 2019.

This Interim Statement was not audited according to Sec. 317 HGB nor reviewed by an auditor.

144

INTERIM FINANCIAL STATEMENTS

GROUP BALANCE SHEET

30

GROUP NET INCOME

32

GROUP CASH FLOW

34

GROUP CHANGES IN SHAREHOLDERS´ EQUITY

36

SEGMENT-REPORTING

38

FINANCIAL CALENDAR

40

IMPRINT

41

30

GROUP BALANCE SHEET

As of September 30, 2020 in k€

ASSETS

September 30, 2020

December 31, 2019

Current assets

Cash and cash equivalents

43,531

117,573

Trade accounts receivable

356,609

346,004

Contract assets

539,278

507,829

Inventories

68,659

79,268

Prepaid expenses

265,311

237,036

Other financial assets

50,424

48,141

Income tax claims

17,522

21,546

Other non-financial assets

17,919

13,772

1,359,253

1,371,168

Non-current assets

Shares in associated companies

185,933

196,037

Other financial assets

71,361

90,413

Property, plant and equipment

1,207,437

1,118,192

Intangible assets

2,229,757

2,167,392

Goodwill

3,608,947

3,616,515

Trade accounts receivable

55,606

57,697

Contract assets

188,586

174,251

Prepaid expenses

235,114

284,252

Deferred tax assets

22,257

10,437

7,804,999

7,715,186

Total assets

9,164,252

9,086,354

FORE WORD

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FIN A N CIAL CA LEND AR / IMPRIN T

31

I N T E R I M F I N A N C I A L RE P O R T

LIABILITIES AND EQUITY

September 30, 2020

December 31, 2019

Current liabilities

Trade accounts payable

507,703

475,535

Liabilities due to banks

438,000

243,733

Income tax liabilities

107,908

91,680

Contract liabilities

149,816

149,930

Other accrued liabilities

12,101

18,372

Other financial liabilities

266,940

239,435

Other non-financial liabilities

46,121

50,337

1,528,589

1,269,022

Non-current liabilities

Liabilities due to banks

1,048,747

1,494,635

Deferred tax liabilities

333,608

351,824

Trade accounts payable

8,059

6,092

Contract liabilities

32,217

34,893

Other accrued liabilities

65,397

67,650

Other financial liabilities

1,311,918

1,247,507

2,799,946

3,202,601

Total liabilities

4,328,535

4,471,623

EQUITY

Capital stock

194,000

205,000

Capital reserves

2,316,972

2,643,946

Accumulated profit

2,148,833

1,993,860

Treasury shares

-212,731

-548,443

Revaluation reserves

24,955

25,173

Currency translation adjustment

-20,606

-9,558

Equity attributable to shareholders of the parent company

4,451,423

4,309,977

Non-controlling interests

384,294

304,753

Total equity

4,835,717

4,614,730

Total liabilities and equity

9,164,252

9,086,354

32

GROUP NET INCOME

From January to September 30, 2020 in k€

2020

2019

January -

January -

September

September*

Sales

3,984,687

3,855,000

Cost of sales

-2,686,599

-2,546,929

Gross profit

1,298,088

1,308,071

Selling expenses

-569,390

-556,449

General and administrative expenses

-151,131

-154,704

Other operating income

25,755

57,932

Impairment of receivables and contract assets

-61,693

-67,261

Operating result

541,629

587,588

Financial result

-28,907

-24,585

Result from associated companies

-11,004

-43,764

Pre-tax result

501,719

519,239

Income taxes

-170,583

-161,601

Net income

331,136

357,638

thereof attributable to

non-controlling interests

82,548

87,460

Shareholders of United Internet AG

248,588

270,179

* Prior year figures adjustet

FORE WORD

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33

I N T E R I M F I N A N C I A L RE P O R T

2020

2019

January -

January -

September

September

Result per share of shareholders of United Internet AG (in €)

basic

1.33

1.35

diluted

1.33

1.35

Weighted average of outstanding shares (in million units)

basic

187.39

200.18

diluted

187.39

200.18

Reconciliation to total comprehensive income

Net income

331,136

357,638

Items that may be reclassified subsequently to profit or loss

Currency translation adjustment - unrealized

-16,572

1,290

Items that are not reclassified subsequently to profit or loss

Market value changes of financial assets measured

at fair value through other comprehensive income

989

51,558

Tax effect

-25

0

Share in other comprehensive income of associated companies

255

285

Other comprehensive income

-15,353

53,133

Total comprehensive income

315,784

410,771

thereof attributable to

non-controlling interests

78,461

87,885

Shareholders of United Internet AG

237,323

322,886

34

GROUP CASH FLOW

From January to September 30, 2020 in k€

2020

2019

January -

January -

September

September

Result from operating activities

Net income

331,136

357,639

Adjustments to reconcile net income to net cash provided by operating

activities

Depreciation and amortization of intangible assets and property, plant and

equipment

232,498

218,709

Depreciation and amortization of assets resulting from company acquisitions

122,302

137,704

Employee expenses from employee shareholdings

9,205

10,109

Result from associated companies

11,004

43,764

Income from the sale of associated companies

0

-21,512

Other non-cash items from tax adjustments

-25,612

-15,725

Other non-cash items

9,956

-4,917

Operative cash flow

690,488

725,770

Change in assets and liabilities

Change in receivables and other assets

-17,444

9,099

Change in inventories

10,609

19,775

Change in contract assets

-45,784

-70,004

Change in income tax claims

4,024

3,782

Change in deferred expenses

20,863

8,675

Change in trade accounts payable

34,135

-141,920

Change in other accrued liabilities

-8,524

-11,590

Change in income tax liabilities

16,228

-30,130

Change in other liabilities

15,614

23,504

Change in contract liabilities

-2,523

-4,831

Change in assets and liabilities, total

27,196

-193,639

Capital gains tax refund

0

-56,156

Cash flow from operating activities

717,685

475,974

FORE WORD

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FIN A N CIAL CA LEND AR / IMPRIN T

35

I N T E R I M F I N A N C I A L RE P O R T

2020

2019

January -

January -

September

September

Cash flow from investing activities

Capital expenditure for intangible assets and property, plant and equipment

-356,865

-165,916

Payments from disposals of intangible assets and property, plant and equipment

4,557

5,200

Purchase of shares in associated companies

-1,264

-5,037

Payments received from the sale of associated companies

0

35,602

Payments for loans granted

0

-2,500

Payments from the sale of financial assets

0

62,500

Payments received from the repayment of other financial assets

4,354

525

Cash flow from investment activities

-349,218

-69,626

Cash flow from financing activities

Purchase of treasury stock

-12,235

-30,356

Repayment of loans

-251,621

-199,199

Redemption of finance lease liabilities and rights of use

-81,103

-75,044

Dividend payments

-93,615

-10,015

Dividend payments to non-controlling interests

-2,577

-2,557

Auszahlung an Minderheitsaktionären

0

-98,384

Cash flow from financing activities

-441,151

-415,554

Net change in cash and cash equivalents

-72,685

-9,205

Cash and cash equivalents at the beginning of fiscal year

117,573

58,066

Currency translation adjustments of cash and cash equivalents

-1,358

629

Cash and cash equivalents at end of fiscal year

43,530

49,490

36

GROUP CHANGES IN

SHAREHOLDERS´ EQUITY

In 2020 and 2019 in k€

Capital

Accumulated

Capital stock

reserves

profit

Treasury shares

Share

€k

€k

€k

Share

€k

Balance as of January 1, 2019

205,000,000

205,000

2,703,141

1,496,154

4,702,990

-174,858

Net income

270,179

Other comprehensive income

Total comprehensive income

270,179

Purchase of treasury shares

1,031,957

-30,356

Disposal of financial assets measured at fair value

through other comprehensive income

22,425

Employee stock ownership program

7,530

Dividend payments

-10,015

Profit distributions

Transactions with shareholders

-16,882

Balance as of September 30, 2019

205,000,000

205,000

2,693,789

1,778,743

5,734,947

-205,214

Balance as of January 1, 2020

205,000,000

205,000

2,643,946

1,993,860

17,338,513

-548,442

Net income

248,588

Other comprehensive income

Total comprehensive income

248,588

Purchase of treasury shares

430,624

-12,235

Redemption of own shares

-11,000,000

-11,000

-336,946

-11,000,000

347,946

Employee stock ownership program

9,972

Dividend payments

-93,615

Profit distributions

Balance as of September 30, 2020

194,000,000

194,000

2,316,972

2,148,833

6,769,137

-212,730

FORE WORD

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37

I N T E R I M F I N A N C I A L RE P O R T

Equity attributable to

Currency translation

shareholders of United

Revaluation reserves

difference

Internet AG

Non-controlling interests

Total equity

€k

€k

€k

€k

€k

83,023

-14,314

4,298,146

223,326

4,521,472

270,179

87,460

357,639

51,843

864

52,707

426

53,133

51,843

864

322,886

87,885

410,771

-30,356

-30,356

-22,425

0

7,530

2,579

10,109

-10,015

-10,015

0

-2,557

-2,557

-16,882

-81,502

-98,384

112,441

-13,450

4,571,309

229,731

4,801,040

25,173

-9,558

4,309,977

304,753

4,614,730

248,588

82,548

331,136

-218

-11,048

-11,266

-4,087

-15,353

-218

-11,048

237,322

78,461

315,783

-12,235

-12,235

0

0

9,972

3,657

13,629

-93,615

-93,615

0

-2,577

-2,577

24,955

-20,606

4,451,423

384,294

4,835,717

38

SEGMENT-REPORTING

From January to September 30, 2020

Consumer

Business

Consumer

Business

United

Access

Access

Applications

Applications

Internet

m€

segment

segment

segment

segment

Corporate

Reconciliation

Group

January - September 2020

€m

€m

€m

€m

€m

€m

€m

Segment revenue

2,792.8

366.6

180.9

707.3

0.9

-63.8

3,984.7

- thereof domestic

2,792.8

366.6

177.7

359.8

0.9

-56.0

3,641.8

- thereof foreign

0

0

3.2

347.5

0

-7.8

342.9

Segment revenue from transactions with

other segments

1.1

50.0

9.7

3.1

0

63.9

Segment revenue from contracts with

customers

2,791.7

316.6

171.2

704.2

0.9

3,984.7

- thereof domestic

2,791.7

316.6

168.1

364.4

0.9

0

3,641.8

- thereof foreign

0

0

3.1

339.8

0

342.9

EBITDA

458.6

114.3

69.5

254.6

-5.4

4.8

896.4

EBIT

345.7

-34.6

54.4

179.0

-7.3

4.4

541.6

Financial result

-28.9

Result from associated companies

-11.0

EBT

257.7

-28.7

36.9

71.1

35.2

3.3

501.7

Income taxes

-170.6

Net income

331.1

Investments in intangible assets, property,

plant and equipment (without goodwill)

240.5

171.7

8.3

87.60

15.40

-1.2

522.2

Amortization/depreciation

112.9

148.9

15.1

75.6

1.9

354.8

- thereof intangible assets, and property,

plant and equipment

28.4

135.2

15.1

51.5

1.9

232.5

- thereof assets capitalized during company

acquisitions

84.5

13.7

0

24.1

0

122.3

Number of employees

3,154

1,188

1,005

3,591

627

9,565

- thereof domestic

3,154

1,188

1,001

1,896

627

7,866

- thereof foreign

0

0

4

1,695

0

1,699

FORE WORD

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39

I N T E R I M F I N A N C I A L RE P O R T

From January to September 30, 2019

Consumer

Business

Consumer

Business

United

Access

Access

Applications

Applications

Internet

m€

segment

segment

segment

segment

Corporate

Reconciliation

Group

January - September 2019

€m

€m

€m

€m

€m

€m

€m

Segment revenue

2,734.9

352.5

0.8

-57.6

3,880.8

184.5

665.7

- thereof domestic

2,734.9

352.5

178.5

324.0

0.8

-32.1

3,558.6

- thereof foreign

0

0

6.0

341.7

0

-25.5

322.2

Segment revenue from transactions with

other segments

1.2

42.0

11.1

3.3

0

57.6

Segment revenue from contracts with

customers

2,733.7

310.5

173.4

662.4

0.8

3,880.8

- thereof domestic

2,733.7

310.5

167.4

346.2

0.8

3,558.6

- thereof foreign

0

0

6.0

316.2

0

322.2

EBITDA

508.6

105.0

70.6

236.8

23.0

944.0

EBIT

396.6

-42.9

58.2

156.8

18.9

587.6

Financial result

-24.6

Result from associated companies

-43.8

EBT

519.2

Income taxes

-161.6

Net income

357.6

Investments in intangible assets, property,

plant and equipment (without goodwill)

1,064.2

137.9

30.2

50.3

16.3

-49

1,250.0

Amortization/depreciation

112.0

148.0

12.3

79.9

4.2

-

356.4

- thereof intangible assets, and property,

plant and equipment

18.7

133.2

12.3

50.3

4.2

-

218.7

- thereof assets capitalized during company

acquisitions

93.3

14.8

0

29.6

0

-

137.7

Number of employees

3,082

1,176

988

3,382

613

-

9,241

- thereof domestic

3,082

1,176

984

1,772

613

-

7,627

- thereof foreign

0

0

4

1,610

0

-

1,614

40

FINANCIAL CALENDAR

March 26, 2020

Annual financial statements for fiscal year 2019

Press and analyst conference

May 13, 2020

Interim Statement for the first quarter 2020

May 20, 2020

(Virtual) Annual Shareholders' Meeting

August 13, 2020

6-Month Report 2020

Press and analyst conference

November 10, 2020

Interim Statement for the first 9 months 2020

FORE WORD

IN T ERIM M A N AGE MENT REP ORT

FIN A N CIAL CA LEND AR / IMPRIN T

41

I N T E R I M F I N A N C I A L RE P O R T

IMPRINT

Publisher and Copyright © 2020

United Internet AG Elgendorfer Straße 57 56410 Montabaur Germany www.united-internet.com

Contact

Investor Relations

Phone: +49(0) 2602 96-1100

Fax: +49(0) 2602 96-1013

E-mail:investor-relations@united-internet.com

November 2020

Registry court: Montabaur HRB 5762

Notice:

Due to calculation processes, tables and references may produce rounding differences from the mathematically exact values (monetary units, percentage statements, etc.).

This Interim Statement is available in German and English. Both versions can also be downloaded from www.united-internet.de. In all cases of doubt, the German version shall prevail.

For reasons of better readability, the additional use of the female form is omitted in this report. United Internet would like to stress that the use of the masculine form is to be understood purely as the gender -neutral form.

Inhouse produced with Firesys

Disclaimer

This Interim Statement contains certain forward-looking statements which reflect the current views of United Internet AG's management with regard to future events. These forward looking statements are based on our currently valid plans, estimates and expectations. The forward-looking statements made in this Interim Statement are only based on those facts valid at the time when the statements were made. Such statements are subject to certain risks and uncertainties, as well as other factors which United Internet often cannot influence but which might cause our actual results to be materially different from any future results expressed or implied by these statements. Such risks, uncertainties and other factors are described in detail in the Risk Report section of the Annual Reports of United Internet AG. United Internet does not intend to revise or update any forward-looking statements set out in this Interim Statement.

United Internet AG

Elgendorfer Straße 57

56410 Montabaur

Germany

www.united-internet.com

Disclaimer

United Internet AG published this content on 10 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 November 2020 09:46:01 UTC


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