DGAP-Adhoc

1&1 Drillisch AG: Substantial price increase from July 2020 onwards for the use of Telefónica's network capacity. As a precaution EBITDA forecast 2020 reduced to approx. EUR 600 million. - Seite 2

This forecast is still subject to uncertainties as a precise assessment of the duration and further effects of the coronavirus pandemic and the outcome of the ongoing negotiations is currently not possible.

The outcome of the ongoing negotiations also has an impact on the rollout of a high-performance 5G network planned by 1&1 Drillisch. This is because national roaming will be required for a multiyear transitional period. For the national roaming agreement, which is negotiated between Telefónica and 1&1 Drillisch for almost two years on the basis of Telefónica's commitments under the EU merger clearance decision regarding the merger with E-Plus, the prices of the MBA MVNO Agreement are principally applicable. However, it is not foreseeable whether an agreement will be reached and under what conditions.

1&1 Drillisch considers the advance service prices claimed by Telefónica from 1 July 2020 onwards to not comply with the commitments of Telefónica under European Commission's merger clearance decision on the merger with E-Plus as well as the MBA MVNO agreement. In the agreement, for both five-year prolongation periods from 1 July 2020, according to 1&1 Drillisch's understanding, only provisions to determine the maximum prices per bitstream component were agreed. The prices per unit (per GByte, voice minute and SMS) to be determined within these maximum requirements must also be guided by the market trends and continue to be annually reduced to enable the offering of mobile tariffs in line with the market.

1&1 Drillisch will take the measures necessary to safeguard its rights (including possible claims for damages). 1&1 Drillisch is in exchange with the European Commission on this issue. Furthermore, the prices are subject of ongoing price adjustment proceedings initiated by 1&1 Drillisch. Telefónica is blocking the appointment of an independent expert for the two price review proceedings initiated in January and July 2020 (Price Review 5 and 6). 1&1 Drillisch has, with respect to the appointment of an expert, already filed a request for arbitration for the Price Review 5 proceedings and is preparing the necessary steps for the Price Review 6 proceedings].