DGAP-Adhoc: Drillisch AG: Forecast for the Year Exceeded;

Drillisch AG / Key word(s): Preliminary Results/Dividend 26.02.2015 17:56 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Drillisch AG: Forecast for the Year Exceeded; Increase of Dividend Highlights of Business Year 2014 (Provisional Results) - EBITDA rises by EUR14.4m to EUR85.2m (+20.3% over previous year) - EBITDA margin rises by 5.0 percentage points to 29.4% - Gross profit rises by EUR23.6m to EUR142.6m (+19.8% over previous year) - Gross profit per MVNO user (AGPPU) rises to EUR6.47 (+3.9% over previous year) - MVNO clientele grows by 223,000 to 1.928 million (+13.1% over previous year) - Budget clientele grows by 355,000 to 1.211 million (+41.5% over previous year) Maintal, 26 February 2015 - Drillisch AG (ISIN DE 0005545503) grew in business year 2014 and increased operating profit once again. The MVNO clientele increased by 223,000 (13.1%) to 1.928 million subscribers (2013: 1.705 million subscribers). This increase comes especially from the growth in the budget subscribers sector, which rose by 355,000 subscribers (41.5%) to 1.211 million (2013: 856,000 subscribers). Service revenue that grew by EUR7.4 million (2.7%) to EUR284.6 million (2013: EUR277.2m) was realised from a total subscriber base of 2.070 million (2013: 1.900 million subscribers). Thanks to subscriber growth and the improved quality of the tariff mix, gross profit rose by EUR23.6 million (19.8%) to EUR142.6 million (2013: EUR119.0m). The gross profit margin improved by 8.2 percentage points to 49.2% (2013: 41.0%) and marks a new high point in the Company's history. Average gross profit per MVNO user (AGPPU) increased by 3.9% to EUR6.47 (2013: EUR6.23) in business year 2014. The EBITDA (earnings before interest, taxes, depreciation and amortisation) rose by EUR14.4 million (20.3%) to EUR85.2 million (2013: EUR70.8m) while the EBITDA margin increased by 5.0 percentage points to 29.4% (2013: 24.4%). Profit before taxes (EBT), adjusted for the one-off effects from the complete sale of the freenet AG holding and the related repayment of all bank loans and the repayment of the convertible bond on freenet stock issued in 2012 rose by EUR10.5 million (16.9%) to EUR72.6 million (2013: EUR62.1m). Operative cash flow improved strongly in business year 2014 by EUR14.8 million (26.0%) to EUR71.8 million (2013: EUR57.0m). Cash in the group increased by 130.1 million (69.5%) over the previous year and amounted to EUR317.1 million at the end of 2014 (2013: EUR187.0m). Performance indicators developed as shown below during Q4 2014: Service revenue in Q4 2014 rose by EUR4.7 million (6.6%) over Q3 2014 to EUR74.8 million (Q3 2014: EUR70.2m). In comparison with the same quarter of the previous year, Service revenue rose by EUR4.8 million (6.9%) (Q4 2013: EUR70.0m). The number of budget subscribers rose by 93,000 (8.3%) in Q4 in comparison with Q3. This is an increase of 355,000 subscribers (41.5%) over the same quarter of the previous year. Gross profit in Q4 at EUR37.4 million rose slightly (by 0.2%) in comparison with Q3. In comparison with Q4 2013, there was a significant rise of EUR5.5 million (17.1%). The gross profit ratio reached 48.7% (Q4 2013: 44.0%). The EBITDA increased to EUR20.6 million in Q4 2014. This represents a rise of EUR1.9 million (10.3%) over Q4 2013 (Q4 2013: EUR18.7m). The EBITDA margin improved by 1.2 percentage points from 25.7% to 26.9%. In comparison with Q3 2014, EBITDA declined by EUR1.6 million because of higher marketing spend. Confirmation of the EBITDA forecast 2015: Drillisch is targeting a clear increase of the MVNO subscriber segment as well as further improvements in the tariff mix and profitability from operations, accompanied by simultaneous growth in revenue. With the acquisition of yourfone GmbH and the start of the MBA MVNO model with effect of 1st July 2015, the offline distribution with circa 300 shops will begin as well. The company is expecting additional growth in subscribers and revenues. Based on this trends, marketing activities will clearly increase as well and support future growth. Despite of increasing marketing costs in the middle-digit million Euros, management board still expects a further increase in EBITDA to between EUR95 million and EUR100 million for 2015 as a whole. Increase of dividend and confirmation of the dividend policy: As a consequence of the positive development in the Company's business and liquidity and in the expected cash flow, the Drillisch AG Management Board is planning to submit a proposal for a cash dividend for business year 2014 of EUR1.70 per voting share to the next ordinary Annual General Meeting, corresponding to an increase of 6.25% in comparison with the previous year's dividend. In line with our corporate policy that aims for sustainability, we strive for a dividend of at least the same amount for the fiscal years 2015 and 2016. This sustained increase is our way of involving our shareholders in the positive development of our business over the long term. Provisional performance indicators of Drillisch Group for 2014 <pre> In EURm 2014 2013 Change in % Revenue 289.6 290.5 -0.3% Service revenue 284.6 277.2 +2.7% Gross profit 142.6 119.0 +19.8% Gross profit margin 49.2% 41.0% AGPPU average gross profit per user (MVNO) 6.47 6.23 +3.9% (blended) EBITDA 85.2 70.8 +20.3% EBITDA margin 29.4% 24.4% Cash 317.7 187.0 +69.5% Debenture bonds 88.8 86.2 +3.0% Financial liabilities 0.0 0.0 Cash flow from current business activities 71.8 57.0 +26.0% Subscribers (thousands) 2.070 1.900 +8.9% Thereof MVNO subscribers 1.928 1.705 +13.1% Thereof budget subscribers 1.211 856 +41.5% Thereof volume subscribers 717 848 -15.4% </pre> Provisional performance indicators of Drillisch Group for Q4 2014 <pre> In EURm Q4 14 Q4 13 Change in Q3 14 % Revenue 76.6 72.6 +5.6% 71.3 Service revenue 74.8 70.0 +6.9% 70.2 Gross profit 37.4 31.9 +17.1% 37.3 Gross profit margin 48.7% 44.0% 52.3% AGPPU average gross profit per 6.42 6.38 +0.6% 6.59 user (MVNO) (blended) EBITDA 20.6 18.7 +10.3% 22.2 EBITDA margin 26.9% 25.7% 31.2% </pre> The complete, audited Annual Report will be available from 20 March 2015 at the following link: http://www.drillisch.de/investor-relations/berichte Maintal, 26 February 2015 Drillisch AG The Management Board Disclaimer: This report contains certain statements oriented to the future which are based on the current assumptions and projections of the management of Drillisch AG. Various risks, uncertainties and other factors, both known and unknown, can cause actual developments, especially in the results, financial position, and the business of our Company, to deviate substantially from the projections about the future as they are shown here. The Company does not undertake any obligation to update such future-oriented statements and to adapt them to future events or developments. All of the above information is based on provisional calculations prior to the final consolidation and the conclusion of the audit. It is consequently possible that the final business figures presented on 20 March 2015 will differ from those shown here. Contact: Oliver Keil Head of Investor Relations Mail: ir@drillisch.de 26.02.2015 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Drillisch AG Wilhelm-Röntgen-Straße 1-5 63477 Maintal Germany Phone: +49 (0)6181 412 218 Fax: +49 (0)6181 412 183 E-mail: ir@drillisch.de Internet: www.drillisch.de ISIN: DE0005545503 WKN: 554550 Indices: TecDAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------