United Internet : Interim Statement Q1 2020

3

CONTENT

4 FOREWORD OF CEO

6 INTERIM GROUP MANAGEMENT REPORT FOR THE FIRST THREE MONTHS OF 2020 6 Business development

12 Position of the Group

18 Subsequent events

19 Risk and opportunity report

20 Forecast report

22 Notes on the Interim Statements

25 INTERIM FINANCIAL STATEMENTS

FOR THE FIRST THREE MONTHS OF 2020 26 Group balance sheet

28 Group net income

30 Group cash flow

32 Changes in shareholders' equity

34 Segment reporting

37 FINANCIAL CALENDAR / IMPRINT

4

Dear shareholders, employees,

and business associates of United Internet,

United Internet AG got off to a good start in its fiscal year 2020. In the first quarter of 2020, we made further investments in new customer contracts and the expansion of existing customer relationships, and thus in sustainable growth. In total, we increased the number of fee-based customer contracts organically by a further 170,000 contracts to a current 24.91 million. Of this total, 100,000 contracts were added in the Consumer Access segment. In the Consumer Applications segment, 850,000 ad- financed free accounts and 10,000 pay accounts were added. A further 60,000 contracts resulted from the Business Applications segment.

Consolidated sales grew by 4.1 % in the first quarter of 2020, from € 1,276.5 million in the previous year to € 1,329.4 million.

Consolidated EBITDA for the first quarter of 2020 increased by 0.4 %, from € 299.7 million in the previous year to € 300.8 million. This merely moderate growth was due in particular to negative effects in the Consumer Access segment from regulatory decisions of the EU on SMS tariffs (since May 15, 2019) and of Germany's Federal Network Agency regarding subscriber line charges (since July 1, 2019) with a total impact of € -6.9 million, which had not yet come into effect in the first quarter of 2019. Moreover, the initial costs for the construction of our own 5G mobile communication network rose to

• -2.8million (prior year: € -1.0 million). By contrast, the one-off costs for integration projects declined to € -0.3 million (prior year: € -2.1 million). In addition to these expected effects with a net negative impact, the temporary change in customer behavior caused by the coronavirus crisis in the first quarter of 2020 also burdened earnings by € -4.9 million in the Consumer Access segment, and thus also at Group level. Adjusted for the aforementioned effects, like-for-like EBITDA rose by 4.3 %.

Although similarly affected by these negative effects, consolidated EBIT rose by 1.7 % from € 181.1 million in the previous year to € 184.2 million due to lower depreciation. Adjusted for these effects, like-for- like EBIT grew by 8.1 %.

Earnings per share (EPS) improved from € 0.24 in the previous year to € 0.39. EPS was burdened by non-cash impairment charges on the shares we hold in Tele Columbus, which are adjusted throughout the year according to the prevailing share price (EPS effect: € -0.22 in the previous year and € -0.08 in the current reporting period). Without consideration of impairment charges, operating EPS rose slightly from € 0.46 to € 0.47. The same applies to operating EPS before PPA, which increased from € 0.58 to € 0.59.

IN T ERIM M A N AGE MENT REP ORT

N T ERIM FIN AN C IA L S TAT E MENT S

FIN A N CI AL C A LEND AR / I MP RIN T

5

F O RE W O RD

Against the continuing backdrop of uncertain macroeconomic conditions due to the coronavirus crisis, we are upholding our outlook for the fiscal year 2020 and still expect sales and EBITDA to be approximately on a par with the previous year. This forecast is still subject to uncertainty, as an exact assessment of the duration and impact of the coronavirus crisis is not currently possible. In the coming weeks and months, we will continue to analyze the effects of the crisis on our business development and plan to update the outlook in our half-yearly report 2020.

We are well prepared for the next steps in our Company's development and upbeat about our prospects for the remaining months of the fiscal year. In view of the successful start to the year - and in particular the challenges caused by the coronavirus crisis - we would like to express our heartfelt gratitude to all employees for their dedicated efforts as well as to our shareholders and business associates for the trust they continue to place in United Internet AG.

Montabaur, May 13, 2020

Ralph Dommermuth

6

INTERIM STATEMENT

ON THE FIRST QUARTER OF 2020

Business development

Development of the Consumer Access segment

The number offee-based contracts in the Consumer Access segment rose by a total of 100,000 contracts to 14.43 million in the first quarter of 2020. Broadband connections decreased slightly by 10,000 to 4.33 million, while mobile internet contracts increased by 110,000.

Development of Consumer Access contracts in the first quarter of 2020
in million		Mar. 31, 2020		Dec. 31, 2019		Change
Consumer Access, total contracts		14.43		14.33		+ 0.10
thereof Mobile Internet	10.10	9.99	+ 0.11
thereof broadband connections	4.33	4.34	- 0.01

Sales of the Consumer Access segmentrose by 4.3 % in the first quarter of 2020, from € 895.4 million in the previous year to € 933.7 million. This sales growth also includes revenue effects of € +3.1 million due to the coronavirus crisis, resulting from the temporary change in customer behavior (especially in the field of telephony (voice), due in part to work-from-home regulations and shelter-in-place restrictions). Adjusted for this effect, like-for-likesalesrose by 3.9 %.

Despite a highly competitive environment, high-marginservice revenues- which represent the core business of the segment - improved by 3.7 % from € 720.8 million to € 747.8 million. This was also partly due to the above mentioned effect.

Low-marginhardware salesrose by 6.5 % from € 174.6 million to € 185.9 million.

At € 164.8 million, however, segment EBITDAfell short of the prior-year figure (€ 168.5 million). This was mainly due to negative effects from regulatory decisions of the EU on SMS tariffs (since May 15, 2019) and of Germany's Federal Network Agency regarding subscriber line charges (since July 1, 2019) with a total impact of € -6.9 million, which had not yet come into effect in the first quarter of 2019. Moreover, the initial costs for the construction of the Company's own 5G mobile communication network rose to

• -2.8million (prior year: € -1.0 million). By contrast, the one-off costs for integration projects declined to € -0.3 million (prior year: € -2.1 million). In addition to these expected effects with a net strongly negative impact, the temporary change in customer behavior caused by the coronavirus crisis in the first quarter of 2020 also burdened segment earnings by € -4.9 million. Adjusted for these effects, like-for-likeEBITDArose by 4.7 %.

As a result of the above mentioned burdens on earnings, segment EBITwas also slightly down on the previous year at € 128.2 million (prior year: € 130.6 million).

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Asset position

The balance sheet totaldecreased from € 9.086 billion as of December 31, 2019 to € 9.022 billion on March 31, 2020.

Current assetsincreased from € 1,371.2 million as of December 31, 2019 to € 1,415.5 million on March 31, 2020. Due to the redemption of bank liabilities, cash and cash equivalentsdisclosed under current assets decreased from € 117.6 million to € 62.2 million. Trade accounts receivablerose from

• 346.0 million to € 356.7 million due toclosing-date effects. By contrast, inventoriesdeclined from
• 79.3 million to € 72.6 million as a result of increased hardware sales. The itemcontract assetsrose from € 507.8 million to € 512.6 million and includes current claims against customers due to accelerated revenue recognition from the application of IFRS 15. Current prepaid expensesincreased from
• 237.0 million to € 302.6 million and mainly comprise theshort-term portion of expenses relating to contract acquisition and contract fulfillment according to IFRS 15. Other financial assetsrose from
• 48.1 million to € 59.5 million andincome tax claimsfrom € 21.5 million to € 30.3 million.

Non-currentassetsfell from € 7,715.2 million as of December 31, 2019 to € 7,606.9 million on March 31, 2020. Due in particular to the Tele Columbus impairment charges, shares in associated companiesdecreased from € 196.0 million to € 174.0 million. Other financial assetsalso fell from € 90.4 million to

• 85.8 million.Property, plant, and equipmentdeclined slightly from € 1,118.2 million to € 1,105.6 million and intangible assetsfrom € 2,167.4 million to € 2,139.7 million. Goodwillwas virtually unchanged at
• 3,610.7 million. The itemcontract assetswas also virtually unchanged at € 177.2 million and includes non-current claims against customers due to accelerated revenue recognition from the application of IFRS 15. Prepaid expensesdecreased from € 284.3 million to € 242.8 million and mainly include the long-term portion of expenses relating to contract acquisition and contract fulfillment, as well as prepayments in connection with long-term purchasing agreements. Deferred tax assetsrose from
• 10.7 million to € 15.0 million.

Current liabilitiesof € 1,269.1 million on March 31, 2020 were virtually unchanged from € 1,269.0 million as of December 31, 2019. Due to closing-date effects, current trade accounts payabledecreased from

• 475.5 million to € 449.2 million.Short-termbank liabilitiesfell slightly from € 243.7 million to
• 240.6 million.Income tax liabilitiesincreased from € 91.7 million to € 102.4 million. The item current contract liabilitieswas largely unchanged at € 153.6 million and mainly includes payments received from customer contracts for which the performance has not yet been completely rendered. Current other financial liabilitiesrose from € 239.4 million to € 260.6 million.

Non-currentliabilitiesdeclined from € 3,202.6 million as of December 31, 2019 to € 3,039.6 million on March 31, 2020. Long-termbank liabilitieswere reduced significantly from € 1,494.6 million to

• 1,344.9 million.Deferred tax liabilitiesdecreased from € 351.8 million to € 340.2 million. The item non-currentcontract liabilitieswas virtually unchanged at € 33.9 million and mainly includes payments received from customer contracts for which the performance has not yet been completely rendered. The non-currentother financial liabilitieswere largely unchanged at € 1,246.9 million.

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Management Board's overall assessment of the business situation

United Internet got off to a good start in its fiscal year 2020. In the first quarter of 2020, the Company made further investments in new customer contracts and the expansion of existing customer relationships, and thus in sustainable growth. In total, the number of fee-based customer contracts grew organically by a further 170,000 contracts to a current 24.91 million contracts.

100,000 contracts were added in the Consumer Access segment. In the Consumer Applications segment, 850,000 ad-financed free accounts and 10,000 pay accounts were added. A further 60,000 contracts resulted from the Business Applications segments.

In view of this customer growth, a 4.1 % increase in sales to around € 1.329 billion, and a slight year-on- year improvement in EBITDA to around € 301 million, United Internet made good progress once again in the first quarter of 2020 - despite negative regulatory effects and burdens from the coronavirus crisis.

The performance once again highlights the benefits of United Internet's business model based predominantly on electronic subscriptions - with fixed monthly payments and contractually fixed terms. That ensures stable and predictable revenues and cash flows, offers protection against cyclical influences and provides the financial scope to grasp opportunities in new business fields and markets - organically or via investments and acquisitions.

With the sales and earnings figures achieved in the first quarter of 2020, as well as the investments made in sustainable corporate development, the Management Board believes that the Company is well placed for its further development.

FORE WORD				N T ERIM FIN AN C IA L S TAT E MENT		FIN A N CI AL C A LEND AR / I MP RIN T	19
		I N T E R I M M A N A G E M E N T RE P O R T

Subsequent events

There were no significant events subsequent to the reporting date of March 31, 2020 which had a material effect on the financial position and performance of the Company or the Group nor affected its accounting and reporting.

New share buyback program

With the approval of the Supervisory Board, the Management Board of United Internet AG resolved on April 1, 2020 to launch a new share buyback program. In the course of this share buyback program up to 5,000,000 shares of the Company (corresponding to approx. 2.58 % of the share capital of

• 194,000,000) are to be bought back via the stock exchange. The volume of the share buyback program amounts to € 150 million in total. The program was launched on April 3, 2020 and will last until August 31, 2020 at the latest.

United Internet thus utilized the authorization issued by the Annual Shareholders' Meeting of May 18, 2017 to buy back shares until September 18, 2020 representing up to 10 % of the Company's share capital at the time of the resolution or, if the amount is lower, at the time when exercising the authorization. On the basis of the authorization of May 18, 2017, 12,635,523 shares (approx. 6.51 % of share capital) had already been previously bought back. As of the balance sheet date of March 31, 2020, the Company held 6,338,513 treasury shares (approx. 3.27 % of share capital).

The acquired treasury shares can be used for all purposes permitted by the authorization of the Annual Shareholders' Meeting of May 18, 2017. The shares may also be cancelled.

The share buyback is based upon the provisions of Regulation (EU) No. 596/2014 and the Commission Delegated Regulation (EU) 2016/1052. Further details were published before the start of the share buyback program. United Internet AG reserves the right to cancel the share buyback program at any time.

Share buyback program suspended

On April 30, 2020, the Management Board of United Internet AG resolved to suspend the above mentioned share buyback program with effect as of the end of the trading day (April 30, 2020). United Internet AG reserves the right to resume or cancel the share buyback program at any time. In the course of the above mentioned share buyback program, the Company bought back 430,624 treasury shares and thus holds a total of 6,769,137 treasury shares (approx. 3.49 % of capital stock) as of April 30, 2020.

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Risk and opportunity report

The risk and opportunity policy of United Internet AG is based on the objective of maintaining and sustainably enhancing the company's value by utilizing opportunities while at the same time recognizing and managing risks from an early stage in their development. The risk and opportunity management system regulates the responsible handling of those uncertainties which are always involved with economic activity.

Management Board's overall assessment of the Group's risk and opportunity position

The assessment of the overall level of risk is based on a consolidated view of all significant risk fields and individual risks, also taking account of their interdependencies.

There were no recognizable risks which directly jeopardized the United Internet Group as a going concern during the reporting period nor at the time of preparing this Interim Statement, neither from individual risk positions nor from the overall risk situation.

The main challenges at present are still the risk fields "Business development & innovations", "Information security", and "Litigation". The risk classification of the risk field "Organizational structure

• decision-making"was raised from low to moderate in the first quarter of 2020. The further expansion of its risk management system enables United Internet to limit these and other risks to a minimum, where sensible, by implementing specific measures.

Compared with reporting on risks and opportunities in the Annual Financial Statements 2019, the other risk assessments remained unchanged in the first quarter of 2020.

The ongoing global spread of the coronavirus is increasingly impacting the risk situation of the

United Internet Group, for example in the risk areas of "Procurement market" and "Acts of God". Should the spread of the virus continue over a longer period, this may also have a negative impact on demand, as well as on the usage and payment behavior of consumers and business owners, the purchase of pre- services (e.g. smartphones, routers, servers or network technology), or the health and fitness of employees, and thus ultimately on the performance of the United Internet Group. A precise risk assessment with regard to the duration and concrete effects of the coronavirus crisis is not possible at present.

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		I N T E R I M M A N A G E M E N T RE P O R T

Forecast report

Forecast for the fiscal year 2020

Against the backdrop of uncertain macroeconomic conditions due to the coronavirus crisis (see comments in the Management Report sections "3 Subsequent Events", "4.1 Risk Report", and "4.3 Forecast report" of the Annual Report 2019), United Internet is upholding its guidance for the fiscal year 2020 and continues to expect sales and EBITDA to be approximately on a par with the previous year. This forecast is still subject to considerable uncertainty, as an exact assessment of the duration and impact of the coronavirus crisis is not currently possible. In the coming weeks and months, the Company will continue to analyze the effects of the crisis on the business development of the United Internet Group and plans to update the outlook in its half-yearly report 2020.

Management Board's overall statement on the anticipated development

The Management Board of United Internet AG is still upbeat about its prospects for the future. Thanks to a business model based predominantly on electronic subscriptions, United Internet believes it is largely stable enough to withstand cyclical influences. With the investments made over the past few years in customer relationships, new business fields, and further internationalization, as well as via acquisitions and investments, the Company has laid a broad foundation for its future growth.

Forward-looking statements

This Interim Statement contains forward-looking statements based on current expectations, assumptions, and projections of the Management Board of United Internet AG and currently available information. These forward-looking statements are subject to various risks and uncertainties and are based upon expectations, assumptions, and projections that may not prove to be accurate.

United Internet AG does not guarantee that these forward-looking statements will prove to be accurate and does not accept any obligation, nor have the intention, to adjust or update the forward-looking statements contained in this interim report.

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NOTES ON THE QUARTERLY STATEMENT

Information on the Company

United Internet AG ("United Internet") is a service company operating in the telecommunication and information technology sector with registered offices at Elgendorfer Strasse 57, 56410 Montabaur, Germany. The Company is registered at the district court of Montabaur under HRB 5762.

Significant accounting, valuation and consolidation principles

As was the case with the Consolidated Financial Statements as of December 31, 2019, the Interim Statement of United Internet AG as of March 31, 2020 was prepared in compliance with the International Financial Reporting Standards (IFRS) as applicable in the European Union (EU).

The Interim Statement does not constitute interim reporting as defined by IAS 34. With the exception of the mandatory new standards, the accounting and valuation principles applied in this Interim Statement comply with the methods applied in the previous year and should be read in conjunction with the Consolidated Financial Statements as of December 31, 2019.

For better comparability, the reclassifications made as of December 31, 2019 were also made accordingly as of March 31, 2019. There is no effect on the key earnings figures.

Mandatory adoption of new accounting standards

The following standards are mandatory in the EU for the first time for fiscal years beginning on or after January 1, 2020:

Standard				Mandatory for fiscal years		Endorsed by EU
				beginning on or after		Commission
IFRS 3		Amendment: Definition of a Business		January 1, 2020		No
IFRS 7, IFRS 9, IAS 39		Interest Rate Benchmark Reform		January 1, 2020		Yes
IAS 1, IAS 8		Amendment: Definition of Material		January 1, 2020		Yes

In addition, the revised conceptual framework for IFRS standards also applies as of January 1, 2020. This contains revised definitions of assets and liabilities, as well as guidance on measurement and derecognition, presentation and disclosure.

There were no significant effects on this Interim Statement from the initial application of the new accounting standards.

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		I N T E R I M M A N A G E M E N T RE P O R T

Use of estimates and assumptions

The preparation of this Interim Statement requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the end of the reporting period. However, the uncertainty associated with these assumptions and estimates could lead to results which require material adjustments to the carrying amount of the asset or liability affected in future periods.

Use of business-relevant key financial performance indicators

In order to ensure the clear and transparent presentation of United Internet's business trend, the Company's annual and interim financial statements include key performance indicators (KPIs) - in addition to the disclosures required by International Financial Reporting Standards (IFRS) - such as EBITDA, the EBITDA margin, EBIT, the EBIT margin and free cash flow. Information on the use, definition and calculation of these KPIs is provided in the Annual Report 2019 of United Internet AG starting on page 49.

Insofar as required for clear and transparent presentation, the KPIs used by United Internet are adjusted for special items. Such special items usually refer solely to those effects capable of restricting the validity of the key financial performance indicators with regard to the Company's financial and earnings performance - due to their nature, frequency and/or magnitude. All special items are presented and explained for the purpose of reconciliation with the unadjusted financial figures in the relevant section of the financial statements.

Miscellaneous

This Interim Statement includes all subsidiaries and associated companies.

The consolidated group remained largely unchanged from that stated in the Consolidated Financial Statements as at December 31, 2019.

This Interim Statement was not audited according to Sec. 317 HGB nor reviewed by an auditor.

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FINANCIAL CALENDAR

March 26, 2020	Annual financial statements for fiscal year 2019
	Press and analyst conference
May 13, 2020	Interim Statement for the first quarter 2020
May 20, 2020	(Virtual) Annual Shareholders' Meeting
August 13, 2020	6-Month Report 2020
	Press and analyst conference
November 10, 2020	Interim Statement for the first 9 months 2020

United Internet AG

Elgendorfer Straße 57

56410 Montabaur

Germany

www.united-internet.com