EANS-News: freenet AG
freenet AG publishes dividend proposal for 2012 as part
of its new dividend policy
25.03.2013 – 20:43
-------------------------------------------------------------------------------- Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- annual report/Financial Figures/Balance Sheet Büdelsdorf (euro adhoc) - freenet AG publishes dividend proposal for 2012 as part of its new dividend policy * Executive and Supervisory Board to propose a dividend of 1.35 euros per share for the 2012 financial year (prior year: 1.20 euros) to the Annual General Meeting * Payout ratio increases to 66 percent of free cash flow* in the amount of 260 million euros (prior year: 241 million euros) * Recently published preliminary results are confirmed Büdelsdorf, 25 March 2013 - freenet AG today published its full Group financial statements for the 2012 financial year and confirmed the preliminary results announced in late February. Following today's adoption of freenet AG's financial statements as at 31 December 2012 and approval of the Group financial statements as at 31 December 2012 by the Supervisory Board, the Executive Board and Supervisory Board of freenet AG will propose to the AGM a dividend payout in the amount of 1.35 euros per eligible share. The preliminary results reported at the end of February 2013 were confirmed in full. Accordingly, freenet increased its Group net income by 20.3 percent to 173.2 million euros (prior year: 144.0 million euros), the best result in the company's history. At the same time, freenet paid down its net debt by 14.8 percent to 451.3 million euros (prior year: 529.4 million euros), reducing its debt factor - as the ratio of net debt to EBITDA - to 1.26 (prior year: 1.57). With Group EBITDA (earnings before depreciation and amortization, interest and taxes) of 357.8 million euros (prior year: 337.4 million euros) and free cash flow of 260.0 million euros (prior year: 241.0 million euros), freenet AG significantly exceeded its forecast, which in November 2012 was increased to 355.0 million euros for Group EBITDA and 255.0 million euros for free cash flow. The dividend payout now proposed by the Executive and Supervisory Board for the past business year represents an increase of 19.2 million euros to 172.9 million euros (prior year: 153.7 million euros). Measured against free cash flow, the payout ratio is approximately 66 percent. Since dividend payments first began in July 2010, the average annual growth rate (CAGR) of the dividend payout is now at 189 percent. "This development documents the sustainability of our business model," explains freenet AG CEO Christoph Vilanek. "Given our clear strategic positioning as a digital lifestyle provider in a dynamic market environment, we see continued growth potential for the future." "Our financial strategy is designed so that, based on our cash flow strength, it not only finances the company's strategic objectives, but also pays an attractive dividend for shareholders and offers our lenders consistently strong investment terms," adds Joachim Preisig, Chief Financial Officer of freenet AG. At the end of February, upon announcing the preliminary results, the Executive Board had retroactively adjusted its dividend policy from the 2012 financial year and lifted the bandwidth for dividend payouts to 50 to 75 percent of free cash flow (previously: 40 to 60 percent). At the same time, the target range for the debt factor was adjusted to 1.0 to 2.5 (previously: 1.5 to 2.5) for an income-oriented optimisation of the capital structure. The Annual General Meeting is scheduled for 23 May 2013 in Hamburg. The complete annual report for the 2012 financial year will be available for download shortly from the freenet AG website at http://www.freenet-group.de/investor/index.html. *************************************** *Free cash flow is defined as cash flow from operating activities, minus investments in property, plant and equipment and intangible assets, plus proceeds from the disposal of property, plant and equipment and intangible assets. Further inquiry note: freenet AG Investor Relations Tel.: +49 (0)40 513 06-778 E-Mail: ir@freenet.ag end of announcement euro adhoc -------------------------------------------------------------------------------- company: freenet AG Hollerstraße 126 D-24782 Büdelsdorf phone: +49 (0)4331 691000 mail: ir@freenet.ag WWW: http://www.freenet-group.de sector: Telecommunications ISIN: DE000A0Z2ZZ5 indexes: Midcap Market Index, TecDAX, CDAX, HDAX, Prime All Share, Technology All Share stockmarkets: free trade: Hannover, Berlin, München, Hamburg, Düsseldorf, Stuttgart, regulated dealing/prime standard: Frankfurt language: English