The dividend policy is a key component of freenet AG’s equity story and underlines the company’s focus on generating sustainable cash flow and providing shareholders with an attractive and reliable share in the company’s success.

freenet follows a clearly defined and predictable dividend policy with the aim of making consistent and reliable dividend payments. This reflects the shareholder structure, which comprises a high proportion of retail shareholders, while also addressing income-oriented investors seeking stable and attractive recurring cash returns.

The dividend is calculated according to a clearly defined and consistently applied methodology:

• Payout ratio: 80 % of adj. free cash flow
• Minimum dividend: 2.00 € per share
• The higher of the two amounts applies in each case

For the financial years 2026 to 2028, the dividend, in accordance with the defined payout methodology, will be 80  per cent of the adj. free cash flow or the minimum dividend of 2.00 € per share, whichever is the higher amount.

The table below sets out the methodology for calculating dividends and the outlook derived from it.

freenet has a long-standing track record of predominantly rising ordinary dividends.

Special dividends have been paid out in certain years in addition to the regular dividends and are not part of the recurring payout methodology.

A temporary deviation occurred in the 2019 financial year in connection with the COVID-19 pandemic.

The table below shows freenet AG’s historical dividend data.

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The table below provides an overview of the tax treatment of dividend payments made by freenet AG, broken down by year of payment.

Note for domestic investors

In the view of the German tax authorities, for domestic investors who acquired shares in freenet AG after 31 December 2008, distributions from the tax contribution account may reduce the tax acquisition cost of the shares.

In the event of a subsequent disposal, this may result in a correspondingly higher capital gain subject to flat-rate withholding tax; in economic terms, this leads to an implicit subsequent taxation of the distribution shares previously received tax-free.

How is the dividend determined?

80% of adj. free cash flow or at least EUR 2.00 per share, whichever amount is higher.

What is the dividend for the 2025 financial year?

2.07 € per share.

Is there a minimum dividend?

Yes, 2.00 € per share.

Is the dividend subject to tax?

Since the 2026 financial year, the dividend has been fully taxable.

How does the dividend relate to the 2028 financial ambition?

The expected dividend is based directly on the target figure for adj. free cash flow set out in the 2028 financial ambition.

How is the adjusted free cash flow (adj. free cash flow) calculated and what role does it play in determining the dividend?

Adj. free cash flow is the key performance indicator used to determine the dividend and reflects the sustainable operating cash surplus.

The definition is consistent with freenet AG’s external financial reporting.

Derivation

Adjustments

Non-recurring and non-operating cash flows that are adjusted to determine adj. free cash flow. These include, in particular, restructuring measures, corporate transactions (acquisitions and disposals), exceptional legal or regulatory matters, and other atypical one-off effects. Regularly recurring operating cash flows are not considered to be special items.

The adjustment for special items serves to present the company’s sustainable cash flow generation in a transparent manner and on a period-appropriate basis.

Dividend yield

The dividend yield is calculated as the ratio of the dividend per share to the closing price (Xetra) at the end of the relevant financial year and represents a historical key figure as at that date.

Total distribution

Dividend per share multiplied by the number of shares outstanding during the relevant financial year.

Tax contribution account

The tax contribution account comprises contributions from shareholders that do not derive from taxed profits (e.g. capital contributions). Distributions from this account are therefore not treated as dividends for tax purposes, but as a return of capital.