Freenet – AGM 27 May 2020
WARNING: The AGM is to be held in the form of a virtual AGM in accordance with the German Act to Mitigate the Consequences of the COVID-19 Pandemic. The physical presence of shareholders or their authorised proxies is not possible. The voting rights may therefore be exercised solely by way of postal voting or by granting authority to the proxies designated by the Company.
General: Supervisory Board member Marc Tüngler is Chief Managing Director of DSW, the local partner of ECGS. This report has been prepared using standard ECGS guidelines.
Freenet offers its approximately 13m customers products for a digital living. The Group's operations can be split into two basic segments: Mobile Communications, and TV and Media. In the Mobile Communications segment, Freenet markets mobile communications products and services relating to mobile contracts. In the TV and Media segment, the business model consists of providing and broadcasting media content, particularly the transmission of TV and radio signals.
As of 31 December 2019, Flossbach von Storch AG held 14.98% and BlackRock Inc. held 7.56% of the Company's shares.
In financial year 2019, Group revenues increased by 1.2% to EUR 2.9bn, EBIT decreased by 13.5% to EUR 270m, net income attributable to the shareholders of Freenet AG decreased by 14.4% to EUR 190.9m and Free Cash Flow decreased by 5.6% to EUR 319.1m.
On 3 May 2020, the Company announced that it expects to perform in line with the previously announced 2020 guidance, even after taking COVID-19 into account.Item 2: Against the background of the recent COVID-19 pandemic and the associated economic consequences, the Management Board and the Supervisory Board propose that the payment of a dividend be suspended, except for the mandatory minimum dividend of EUR 0.04. In view of the recent events relating to COVID-19, ECGS is in favour of postponing decisions on the dividend, reductions or suspensions that would allow companies to avoid liquidity risks or not generate risk for their survival. The proposal reflects the focus on preserving liquidity. We recommend support.
Freenet is a telecommunications provider in Germany. Co. provides its customers a portfolio of services and products, particularly in the field of mobile voice and data services. Co. does not operate its own network, but markets mobile communication services for the mobile network operators Telekom, Vodafone, E-Plus and O2 in Germany, under its own name and on its own account. Apart from its own network-independent postpaid, no-frills and prepaid services, Co. also provides the original network operators' tariffs. Co. operates within two segments: mobile communications and other/holding.
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