DGAP-News

freenet AG approves dividend payment of EUR 172.8 million

DGAP-News: freenet AG / Key word(s): AGM/EGM/Dividend
freenet AG approves dividend payment of EUR 172.8 million

23.05.2013 / 14:26

---------------------------------------------------------------------

- Annual General Meeting approves dividend of EUR 1.35 per eligible share

- Payout ratio rises to 66% of free cash flow*

- Creation of new authorized capital in the amount of 12.8 million euros

Büdelsdorf, 23 May 2013 - freenet AG today approved, with around 37 percent
of its outstanding share capital in attendance and by a large majority, all
of the agenda items proposed by its boards.

Following a constructive shareholder debate, freenet Group's strategic
development from Germany's largest independent provider of mobile
communications services into a strong-selling digital lifestyle provider
centring on the core business of mobile communications was confirmed.

'Thanks to our strategic focus on growth areas in the digital lifestyle
sector, we are very well positioned in a mobile communications market that
is increasingly dominated by smartphones,' says freenet AG CEO Christoph
Vilanek. 'Given our existing range of services, we have a good basis for
developing additional potential for value creation here.'

Due to the sustainable business model with continued high cash inflows, the
Executive Board had adjusted its dividend policy retroactively from the
2012 fiscal year at the beginning of the year, and increased the payout
corridor to between 50 and 75 percent of free cash flow. The now-approved
dividend payment for the past fiscal year in the amount of 1.35 euros per
eligible share represents a payout ratio of around 66 percent of free cash
flow. The remaining balance sheet profit of 227.3 million euros will be
carried forward.

'We are pleased to have our shareholders participate in the freenet Group's
profitable business performance in fiscal 2012,' says freenet AG CFO
Joachim Preisig. 'At the same time, we have reduced our net debt by nearly
15 percent, to further improve our risk profile for lenders.'

Apart from the regular agenda items, the creation of new authorized capital
in the amount of 12.8 million euros and the adaptation of existing
intercompany agreements with freenet AG subsidiaries to reflect current
legislation were put to the vote.

Further information about freenet AG's 2013 Annual General Meeting is
posted at http://www.freenet-group.de/investor.

* 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.


End of Corporate News

---------------------------------------------------------------------

23.05.2013 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

DGAP's 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: freenet AG
Hollerstraße 126
24782 Büdelsdorf
Germany
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]
Internet: www.freenet-group.de
ISIN: DE000A0Z2ZZ5, DE000A1KQXU0
WKN: A0Z2ZZ , A1KQXU
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart


End of News DGAP News-Service
---------------------------------------------------------------------
212742 23.05.2013