EANS-News: freenet AG / freenet AG publishes dividend proposal for 2012 as part of its new dividend policy

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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
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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