United Internet AG: Non-scheduled, non-cash impairment on Tele Columbus
investment

EQS-Ad-hoc: United Internet AG / Key word(s): Investment/Strategic Company
Decision
United Internet AG: Non-scheduled, non-cash impairment on Tele Columbus
investment

14-Jun-2024 / 20:10 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation
(EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Montabaur, June 14, 2024. United Internet AG today resolved to make no
further investments in the holding company Kublai GmbH (Kublai). Kublai
currently holds around 95% of shares in Tele Columbus AG (Tele Columbus).

Specifically, United Internet is waiving its right to increase its stake in
Kublai to 40% again after it was diluted to around 5% in the course of a
capital increase in the first quarter of 2024. As a result, United Internet
expects a non-cash impairment loss on its investment in Kublai of around EUR
185 million in its Half-year Financial Report 2024.

In its Interim Statement Q1 2024, United Internet reported that Kublai had
conducted a capital increase in the first quarter of 2024 to provide Tele
Columbus with equity, in which United Internet did not participate. A
further shareholder of Kublai is Hilbert Management GmbH, an indirect
subsidiary of Morgan Stanley Infrastructure Inc. (MSI), an infrastructure
fund managed by the investment bank Morgan Stanley, which subscribed to the
full amount of the capital increase totaling EUR 300 million. This resulted
in a dilution of United Internet's stake in Kublai to around 5% (previously
40%). Until June 17, 2024 (previously agreed: June 6, 2024), United Internet
has the option to increase its stake in Kublai back to 40% by acquiring
shares from MSI in return for a payment of EUR 120 million.

United Internet is convinced that the valuation of Tele Columbus AG on which
the capital increase is based is significantly too low and that the dilution
of the shares held by United Internet is therefore too far-reaching.
However, its majority of votes at the shareholders' meeting enabled MSI to
conduct the capital increase on the basis of a valuation determined by MSI.
United Internet will now initiate the contractually stipulated anti-dilution
proceedings and arrange for an arbitration court to review MSI's valuation.
If the court follows United Internet's opinion based on a valuation
commissioned prior to the capital increase, United Internet is entitled to a
compensation amount of approximately EUR 300 million.

The reason for the decision of the Management Board and Supervisory Board of
United Internet AG not to make any further investments in Kublai is a
difference of opinion between MSI and United Internet regarding the future
financing of Kublai.

Contact

United Internet AG
Lisa Pleiß
Phone +49 2602 96-1616
presse@united-internet.de


Note

In the interests of clear and transparent reporting, the annual financial
statements and interim statements of United Internet AG, as well as its
ad-hoc announcements pursuant to Art. 17 MAR, contain additional financial
performance indicators to those required under International Financial
Reporting Standards (IFRS), such as EBITDA, EBITDA margin, EBIT, EBIT margin
and free cash flow. Information on the use, definition and calculation of
these performance measures is provided in the Annual Report 2023 of United
Internet AG on page 58.


End of Inside Information

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   Language:       English
   Company:        United Internet AG
                   Elgendorfer Straße 57
                   56410 Montabaur
                   Germany
   Phone:          +49 (0)2602 / 96 - 1100
   Fax:            +49 (0)2602 / 96 - 1013
   E-mail:         info@united-internet.de
   Internet:       www.united-internet.de
   ISIN:           DE0005089031
   WKN:            508903
   Indices:        MDAX, TecDAX
   Listed:         Regulated Market in Berlin, Frankfurt (Prime Standard);
                   Regulated Unofficial Market in Dusseldorf, Hamburg,
                   Hanover, Munich, Stuttgart, Tradegate Exchange
   EQS News ID:    1925721

End of Announcement EQS News Service
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1925721 14-Jun-2024 CET/CEST