DGAP-News

Drillisch AG: EBITDA forecast exceeded - significant improvement in all major KPIs striking proof of successful corporate strategy - EBITDA forecast for 2017 confirmed - Seite 3

Improved cash flow from current business activities

Cash flow from current business activities rose in the past fiscal year 2016 by EUR4.3 million (5.6%) to EUR80.5 million (2015: EUR76.2 million). In Q4 2016, operating cash flow amounted to EUR22.5 million, more than doubling (112.1%) the figure of the same quarter of the previous year (Q4 2015: EUR10.6 million).

Outlook
Drillisch is in an excellent position for the future. The Management Board's outlook for fiscal year 2017 is optimistic; they expect the number of MVNO customers to continue to rise, leading to a parallel continuation of the Company's successful development, and they confirm the EBITDA forecast for the current year 2017 of EUR160 million to EUR170 million (2016: EUR120.2 million). Moreover, Drillisch expects a steady rise in operating cash flow. Foreseeable changes on the cost side such as the recently announced changes in the roaming regulation have been taken into account in these forecasts.

Proposed dividend and confirmation of the long-term dividend policy
In view of the successful course of business, the outstanding market opportunities open to the Company in its position as an MBA MVNO and the expectations of a continued positive development of liquidity and operating cash flow, the Drillisch AG Management Board, subject to the agreement of the Supervisory Board, intends to propose to the Annual General Meeting the eighth successive dividend increase to EUR1.80 per share entitled to dividends.

Provisional performance indicators of Drillisch Group for 2016 (IFRS)

	2016	2015	Change in %
Revenue in EURm	710.0	629.5	+12.8
Service revenue in EURm	551.3	433.7	+27.1
Gross profit in EURm	278.9	254.4	+9.6
Gross profit margin	39.3%	40.4%
AGPPU (average gross profit per MVNO user)	7.58	7.34	+3.3
EBITDA in EURm	120.2	105.6	+13.9
EBITDA margin	16.9%	16.8%
Cash flow from current business operations in EURm	80.5	76.2	+5.6
Subscribers (million)	3.430	2.678	+28.1
Thereof MVNO subscribers	3.359	2.587	+29.8
Thereof budget subscribers	2.863	1.932	+48.2
Thereof volume subscribers	0.496	0.655	-24.3