We intend to achieve a payout ratio of 80% of adjusted free cash flow or to pay a minimum dividend of EUR 2.00 per share, whichever is higher. freenet AG has an above-average dividend yield compared to other companies listed on the MDAX and has been able to continuously increase its ordinary dividend per share in recent years.

With regard to freenet’s expected future dividend development, we refer to our update on the 2028 Financial Ambition. At the end of the 2028 financial year, the Executive Board expects an adjusted free cash flow of at least EUR 340 million. Given the Executive Board’s expectation of rising adjusted free cash flow and the targeted payout ratio of 80% of free cash flow, we anticipate a dividend of at least EUR 2.30 per share for our shareholders in the 2028 financial year.

* The dividend yield is calculated by dividing the dividend per share and the closing price (XETRA) at the end of a financial year.

** (EUR 0.12 of the amount is attributable to a special dividend).

*** The Annual General Meeting approves to pay a dividend for the 2020 financial year in the amount of EUR 1.50 per no-par-value share and a special dividend of EUR 0.15 per share.

**** To ensure the financial stability and flexibility of the freenet Group at a time when the effects of the coronavirus crisis could not yet be foreseen, the proposal by the company’s management to suspend the dividend for the 2019 financial year and only distribute the legally binding statutory minimum of EUR 0.04 per share was adopted with a majority of 94.74% at the Annual General Meeting on 27 May 2020.

The dividend distribution of freenet AG was paid in full from the tax contribution account in 2024. The payment was therefore made without deduction of capital gains tax and solidarity surcharge. In 2025, the dividend was paid out with a partial deduction of capital gains tax. Around 60% of the dividend was paid out without deduction of capital gains tax. Since 2026, the dividend is paid out with full deduction of capital gains tax and solidarity surcharge.

Domestic investors who acquired freenet AG shares after 31 December 2008 will realise a capital gain subject to withholding tax in the event of a sale. In the opinion of the German tax authorities, the distributions in this case reduce the acquisition costs of the shares for tax purposes and thus lead to a higher capital gain - and therefore to an implicit subsequent taxation of the dividends.