To the shareholders of mobilezone holding ag

GENERAL MEETING

Wednesday, 5 April 2023, 10.30 a.m. | Gemeindesaal, Dorfmatt 1, 6343 Rotkreuz

Door opening: 10.00 a.m.

www.mobilezoneholding.ch

About the visual concept of the Annual Report 2022

mobilezone's sustainability strategy is based on the four pillars of employees, customers, smartphone cycle and environmental management. After focusing on our employees last year, this year we are focusing on our customers. Within the Annual Report 2022, we portray private and business customers of mobilezone in Switzerland and Germany. We learn from them why they are customers of mobilezone and what they particularly appreciate about the company. With the portraits on the cover page and in the booklet, we give you an insight into the concept of the Annual Report.

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Agenda items and motions

1. Report on the financial year 2022

  1. Approval of the 2022 Annual Report and consolidated financial statements
  2. Approval of the 2022 financial statements of mobilezone holding ag
  1. Discharge of the Board of Directors and Group Management
  2. Resolution on the appropriation of available earnings, an ordinary dividend and a withholding-tax-free distribution from reserves from capital contribution
  1. Appropriation of the 2022 available earnings and ordinary dividend of mobilezone holding ag
  2. Withholding-tax-freedistribution from reserves from capital contribution of mobilezone holding ag
  1. Amendment to the articles of association Amendment to Article 3 (reduction in share capital)
  2. Remuneration for members of the Board of Directors and Group Management
  1. Advisory vote on the remuneration report for the fiscal year 2022
  2. Approval of the total amount of the maximum permissible remuneration for the Board of Directors for the period up to the next General Meeting
  3. Approval of the total amount of the maximum permissible remuneration for Group management for fiscal year 2024

6. Elections

  1. Members of the Board of Directors
  2. Chairman of the Board of Directors
  3. Members of the Compensation Committee
  4. Independent proxy
  5. Auditor

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Strong 2022 results - mobilezone gains market share - 7.5 per cent organic sales growth to over CHF 1 billion

Dear Shareholders,

In 2022, mobilezone continued to build on the record financial result achieved in the previous year. The market share was further expanded by growing sales volume both in Germany and Switzerland.

Sales amounted to CHF 1 billion, of which 69 per cent were generated in Germany and 31 per cent in Switzerland. The company's own platforms generated "online" sales of CHF 400 million (previous year: CHF 374 million) representing 40 per cent of sales. Organic growth amounted to 7.5 per cent. The solid result, with EBIT of CHF 70.6 million (previous year: CHF 66.7 million) and an EBIT margin of

7.0 per cent (previous year: 6.8 per cent), is a reflection of the consistency in the pursuit of our strategic direction. Adjusted for the negative foreign exchange impact of CHF 2.7 million, EBIT amounted to CHF 73.3 million in the reporting year.

Excluding the non-cash special effect of CHF 6 million from the sale of the wholesale business in Germany in January 2021, EBIT in the previous year was CHF 72.7 million.

Financial guidance

Despite the negative foreign exchange impact of CHF 2.7 million on EBIT and CHF 52 million on sales, the EBIT guidance and sales expectations have been met. The EBIT margin target of 7.6 per cent could not be achieved due to the challenging economic environment in the second half of 2022 and the resulting lower margins in the German business.

Key figures at a glance

Organic sales growth of 7.5 per cent from CHF 982 million to CHF 1,055 million. Adjusted for the negative currency effect of 5.3 per cent, sales amounted to CHF 1,003 million.

Operating profit (EBIT) of CHF 70.6 million (previous year: CHF 66.7 million) with an EBIT margin of 7.0 per cent (previous year: 6.8 per cent), with Switzerland and Germany each contributing 50 per cent.

Financial expenses decreased by CHF 1.1 million to CHF 1.9 million (previous year: CHF 3.0 million).

Tax expenses amounted to CHF 14.2 million, increasing by CHF 0.4 million compared to the previous year.

Net profit was CHF 54.5 million (previous year: CHF 50.7 million).

Free cash flow was CHF 100.8 million (previous year: CHF 67.6 million).

Net working capital amounted to CHF 124 million at the end of the year (previous year: CHF 85 million).

Financial liabilities amounted to CHF 149 million compared to CHF 134 million at the end of December 2021.

Net debt decreased to CHF 30 million (previous year: CHF 76 million).

The net debt to EBITDA ratio was 0.38 (previous year: 0.99).

Shareholders' equity in the statutory financial statements of mobilezone holding ag amounted to CHF 147 million (previous year: CHF 175 million).

The first tranche of the share buyback programme 2022 -2025 was completed with 770,865 shares (1.75 per cent of the outstanding shares) on 20 October 2022 at an average price of CHF 15.57 per share or a total of CHF 12.0 million.

Earnings per share amounted to CHF 1.25 (previous year: CHF 1.13).

The Board of Directors will propose a dividend of

CHF 0.90 per registered share (previous year: CHF 0.84) to the General Meeting.

On 31 December 2022, the share price was CHF 15.32 compared to CHF 13.62 at the end of December 2021.

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REPORT TO SHAREHOLDERS

Markus Bernhard, CEO

Olaf Swantee Chairman of the Board of Directors

Market area Switzerland

Business in Switzerland developed very well across all sectors.

At EBIT-level, retail and B2B segments were able to confirm the best result in the company's history achieved in previous year.

Sales decreased from CHF 323 million to CHF 305 million, representing a drop of 5.6 per cent. The decrease in sales is due to lower hardware sales.

EBIT amounted to CHF 35.5 million (previous year: CHF 36.3 million), resulting in a return on sales of 11.6 per cent (previous year: 11.2 per cent).

The number of shops was 124 as it was in the previous year.

The number of negotiated contracts (postpaid, Internet and TV) increased by 9.8 per cent to 437,000 (previous year: 398,000).

Service sales (fleet management, data transfer, setting up smartphones and other services) amounted to CHF 7.4 million (previous year: CHF 7.2 million).

Accessories sales increased by 4.2 per cent to CHF 24.9 million (previous year: CHF 23.9 million) and represented 8.2 per cent (previous year: 7.4 per cent) of sales in Switzerland.

Sales at the Mobile Virtual Network Operator (MVNO) TalkTalk amounted to CHF 21.2 million (previous year: CHF 17.1 million). The sales share of mobile customers increased to 88 per cent (previous year: 79 per cent). In the postpaid SIM cards segment, the number of customers increased to 66,600 (previous year: 45,700), representing a 46 per cent growth.

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Mobilezone Holding AG published this content on 13 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 March 2023 13:19:05 UTC.