DRILLISCH AG REPORT ON FIRST QUARTER 2012 DATA AND FACTS Key Indicators of the Drillisch Group Drillisch-Konzern Q1/2012 Q1/2011 Q1/2010 Turnover in �( 84.2 80.3 )*+- Service Revenues ./+, 72.4 -*+0 Other revenues1 )+0 .+0 19.6 EBITDA in €m 14.8 12.5 11.0 EBITDA, adjusted in €( 14.8 12.5 11.0 EBIT in €m 14.0 11.3 0+/ EBT in �( 6.1 14.6 0+* Consolidated pro�ts in €m 2.8 10.9 -+- Pro�t/loss per share in € 0.05 0.21 0.12 EBITDA margin in % of turnover 17.6 15.5 13.0 EBITDA margin adjusted in % of turnover 17.6 15.5 13.0 EBIT margin in % of turnover 16.6 14.1 11.2 EBT margin in % of turnover 7.2 18.2 11.2 Consolidated pro�t margin in % of turnover ,+* 13.6 .+) Equity ratio (equity % of balance sheet tota&= 41.7 *0+/ 50.6 Return of equity (ROE) (ratio Group result to equity) 1.7 7.2 *+* Cash �ow from current business operations in €m -22.6 3.2 12.3 Depreciation excluding goodwill in €m 0.8 1.2 1.5 Investments (in tangible and intangible �xed assets), adjusted, in €m 0.9 0.6 0.6 Staff as annual average (incl. Management Board) 328 332 ,)/ Wireless services customers as per 31/03 (approx. in thousands= 2,427 2,473 2,258 Wireless services customers Debit )-/ 1,220 1,221 Wireless services customers Credit 1,562 1,253 1,037 1Ot%er re'enues in#&u"es %an"sets an" ot%er re'enues+ 2 Report on First Quarter 2012 TABLE OF CONTENT Data and Facts 2 To Our Shareholders 4 Letter from the Management Board 4 Investor Relations Report 7 Market Environment 10 The Wireless Services Market 11 The Software Ind str! 14 Commercial Development of the Drillisch roup as per !1 March 2012 1" "ro p #ompanies 1$ T rnover and %arnings &osition 1' (ssets) Lia*ilities and +inancial &osition ,- .pport nities and Risks of the + t re B siness /evelopment ,1 Consolidated #nterim $ccounts as per !1 March 2012 22 #onsolidated #omprehensive Income Statement ,0 #onsolidated Balance Sheet ,4 #onsolidated Statement of #hange in #apital ,$ #onsolidated #apital +low Statement ,7 #onsolidated 1otes ,' Service Corner !1 & *lications 01 2o r #ontacts 01 Information and .rder Service 01 %ditorial Information 0, Report on First Quarter 2012 , TO OUR SHAREHOLDERS Letter from the Management Board Management Board Vlasios Choulidis Paschalis Choulidis Dire#tor o$ Sa&es4 BarFetin8 an" Custo(er Care EAe#uti'e@2oar" SpoFes(an4 Dire#tor o$ Finan#es4 Finan#ia& Co((uni#ation4 Contro&&in8 an" IT Dear Sir or Ba"a(4 Dri&&is#% 8ot o$$ to a su##ess$u& start in t%e ne? !ear+ Dri&&is#% GroupDs trans$or(ation $ro( t%e pre'ious #&assi# ser'i#e pro'i"er to an BENO ;(o<i&e 'irtua& net?orF operator= %as pro'en to <e t%e ri8%t strate8ic "e#ision to assure t%e #ontinuation o$ :ua&itati'e 8ro?t% o'er a perio" o$ (an! !ears+ As ?as reporte" in our #onso&i"ate" annua& report $or 6s#a& !ear 20114 ?e ?ere a<&e to <rin8 t%e &e8al "isputes ?it% Deuts#%e Te&eFo( to a #&ose on 21 Bar#%+ Boreo'er4 t%e in'esti8ations o$ t%e Bana8e(ent 2oar" (e(<ers an" t%e (ana8in8 "ire#tors o$ Dri&&is#% AG su<si"iaries4 initiate" <e#ause o$ t%e #%ar8es 6&e" <! Deuts#%e Te&eFo(4 %a'e <een #&ose" 6na&&! <! t%e pu<&i# prose#utorDs o$6#e ?it% t%e appro'a& of t%e presi"in8 #ourt+ In a""ition to our re8u&ar <usiness a#ti'ities4 ?e trans$erre" t%e re(ainin8 su<s#ri<ers ?%o ?ere using t%e Te&eFo( net?orF to t%e ?ire&ess ser'i#es net?orFs o$ Te&e$Gni#a O2 an" Eo"a$one ?%ere'er t%is ?as per(issi<&e in a##or"an#e ?it% #ontra#ts "urin8 t%e 6rst $our (ont%s o$ t%is !ear+ In a##or"an#e ?it% t%e a8ree(ent #on#&u"e" ?it% Deuts#%e Te&eFo(4 si(p&! so&" a<out */04000 prepaid su<s#ri<ers to Te&eFo( or to a t%ir" part! to <e "esi8nate" <! Te&eFo(+ It ?as #ontra#tua&&! not possi<&e to trans$er t%ese su<s#ri<ers to ot%er ?ire&ess ser'i#es net?orFs+ T%e re(ainin8 su<s#ri<ers #o'ere" <! t%e #urrent #ontra#ts ?i&& <e a<&e to uti&ise t%e Te&eFo( net?ork ?it%out an! restri#tions unti& t%e en" o$ 201,4 at ?%i#% ti(e t%e! #an <e trans$erre" to ot%er net?orFs if no ot%er pro'isions %a'e <een a8ree" ?it% Deuts#%e Te&eFo( <! t%at ti(e+ T%e #on#&usion o$ t%e #ontra#tua& a8ree(ent "es#ri<e" a<o'e is s#%e"u&e" $or Ba! 2012+ On / Apri&4 ?e issue" an eA#%an8ea<&e <on" $or 312/ (i&&ion on $reenet AG s%ares+ T%is transa#tion en@ %an#es t%e 6nan#ia& an" strate8i# >eAi<i&it! o$ our Co(pan! an" assures us o$ a &o? interest rate &ong ter(+ T%e in#o(e $ro( t%e issue ?i&& <e uti&ise" $or a partia& re6nan#in8 o$ #urrent &ia<i&ities an" $or 8enera& <usiness purposes+ The industry association BITKOM is predicting a slight increase in sales for 2012. The driving force here ?ill above all be in (obile data services; the association forecasts growth of about 10% to €8.2 billion in this year. This push in growth is in a consequence of the continuing rise in demand for %igh-quality multimedia mobile phones. ;Source: BITKOM February 2012) Sales of modern touch screen mobile phones are expected to increase by ,/% to 15.9 million units in the current year – which BITKOM regards as a “turning point” on * Report on First Quarter 2012 TO OUR SHAREHOLDERS Letter from the Management Board the mobile phone market. According to a survey conducted by the opinion research company ARIS in April 2012, one out of three Germans has a smartphone, and half of the people in the age 8roup under 30 have one. Additional stimulus is coming from tablet computers which have now, about two years after their �rst appearance on the (arket, become 6rmly established. These digital companions are %ighly popular as a second mobile device. BITKOM expects an increase in sales of 29% to 2.9 million devices this year+ Ce #an #on6r( t%is tren". A&on8 ?it% t%e in#rease in ser'i#e re'enues4 i+e+ t%e in#o(e 8enerate" <! on8oin8 ?ire&ess ser'i#es4 <y 32+0 (i&&ion or *+09 to 3./+, (i&&ion ;Q1 2011I 3.2+*(=4 ot%er sa&es rose "urin8 t%e 6rst :uarter o$ 2012 as ?e&& <! 31+0 (i&&ion to 3)+0 (i&&ion ;Q1 2011I 3.+0(= <e#ause (ore an" (ore o$ our #usto(ers are a&so pur#%asin8 s(artp%ones in t%e ?e<s%ops o$ our 'arious <ran"s+ Tota& re'enues in#rease" <! 3,+0 (i&&ion or *+)9 to 3)*+2 (i&&ion in t%e 6rst :uarter 2012 ;Q1 2011I 3)0+,(=+ Gross pro6t i(pro'e" <! 229 to 32.+. (i&&ion ;Q1 2011I 322+.(= "urin8 t%e 6rst :uarter o$ 2011+ T%e 8ross pro6t (ar8in <roFe t%e <arrier o$ ,09 $or t%e 6rst ti(e in our Co(pan!Ds %istor!4 risin8 <! *+-9 to ,2+09 ;Q1 2011I 2)+,9=4 sea(&ess&! #ontinuin8 t%e pro8ress o$ 6s#a& !ear 2011 ;20+*9=+ Co(pare" ?it% t%e sa(e :uarter o$ t%e pre'ious !ear4 #onso&i"ate" E2ITDA in#rease" <! 1)+/9 or 32+3 (i&&ion to 31*+) (i&&ion ;Q1 2011I 312+/(=+ T%e E2ITDA (ar8in i(pro'e" <! 2+19 to 1.+-9 ;Q1 2011: 1/+/9=. T%e "!na(i# 8ro?t% in t%e postpai" su<s#ri<er <ase #ontinue" una<ate" into t%e 6rst :uarter 2012+ T%e :ua&itati'e i(pro'e(ent in t%e su<s#ri<er <ase in #o(parison ?it% t%e sa(e :uarter o$ t%e pre'ious !ear is e'i"en#e" <! t%e in#rease in postpai" su<s#ri<ers <! 2*+.9 or ,004000 su<s#ri<ers to 1+/-2 (i&&ion su<s#ri<ers #on#o(itant ?it% t%e "e&i<erate a'oi"an#e o$ t%e prepai" <usiness an" its ?eaF (ar8insH (o@ reo'er4 a tota& o$ ,//4000 ina#ti'e su<s#ri<ers %a'e <een re(o'e" $ro( t%e &atter se8(ent4 &ea'in8 a <ase o$ )-/4000 #usto(ers %ere+ As a #onse:uen#e4 t%e ratio o$ postpai" to prepai" su<s#ri<ers i(pro'e" <y 1,9 in t%e !ear@on@!ear #o(parison to -*9 to ,-9 ;Q1 2011I /19 to *09=+ T%e 6nan#ia& resu&t in t%e 6rst :uarter 2012 a(ounte" to 3@.+0 (i&&ion ;Q1 2011I 3L,+,(=+ T%is ?as a #on@ se:uen#e4 on t%e one %an"4 o$ t%e "ire#t e$$e#t $ro( t%e "is#&osure in t%e <a&an#e s%eet o$ t%e $reenet %o&"in8 as e:uit! at 3L.+* (i&&ion $ro( t%e <e8innin8 o$ 2012+ T%is re>e#ts t%e proportionate positi'e "e'e&op(ent o$ $reenet AG4 <a&an#e" a8ainst t%e ?rite@o$$s resu&tin8 $ro( t%e pur#%ase pri#e a&&o#ation.