​​​​​​​Philion SE: Acquisition of Handyflash.de is the beginning of growth acceleration

Philion SE: Acquisition of Handyflash.de is the beginning of growth acceleration

- Acquisition of Handyflash.de and 30 branches against a 30% stake in DEINHANDY
- Significant economies of scale on the cost side
- Further M&A activities planned by the end of the year

Berlin, 11 September 2019. Philion SE (ISIN: DE000A1X3WF3) aims to take advantage of the changes in the German telecommunications market and establish one of the three leading network-independent mobile service providers. In doing so, the Group relies on an Omni-Channel strategy. Now the strategic build-up phase has been completed and the growth of the group is gaining speed. An exchange of shareholdings was agreed with the Swiss mobilezone group. In addition, the partnership is to be intensified in order to exploit cost advantages. The M&A activities are to be continued in the coming months.

"With the acquisition of Handyflash.de and the even closer partnership with mobilezone, we have created the prerequisites for implementing the Omni-Channel approach much faster and bringing it to market. In addition, we can realize cost advantages along the entire value chain," says René Schuster, Chairman of the Board of Philion SE. "Philion is actively helping to break down the outdated sales structures in the German telecommunications market and will offer customers significant added value. It will not matter whether they prefer to shop online or come to the stores. All customers can look forward to innovative products, competent advice and attractive prices".

The agreement with mobilezone provides for the following: Philion acquires OBS GmbH with the online platform Handyflash.de and 30 stationary branches. Handyflash.de is the third largest online service provider in the German mobile phone market, has contracts with all network operators and already today a complete platform for the implementation of a comprehensive Omni-Channel approach. In return, Philion will sell its 30% stake in Mister Mobile GmbH with the DEINHANDY brand, which it acquired at the end of 2018. In addition, the two partners will cooperate intensively in purchasing and relationship management with the network operators. As a result, Philion will be able to benefit from considerable economies of scale on the cost side.
The Philion Group will in future include the chain stores Fexcom, OBS and Helferline as well as the online platform Handyflash. The implementation of the transaction still requires the signing of the contracts. This is expected to take place this month.

Due to the planned transaction, Mister Mobile GmbH will not be consolidated by Philion. Although the sales of more than EUR 150 million originally announced for this year will not be achieved, the transaction will not have any negative impact on the earnings forecast. For the full year 2019, Philion currently expects a positive result. This corresponds to the forecast made in the management report of the 2018 annual financial statements.

Contact:
Philion SE // www.philion.de // M: info@philion.de

Investor Relations & Press
Fabian Lorenz // T: +49 221 29 83 15 88 // M: ir@philion.de

Über Philion SE
Led by Board Chairman René Schuster (former CEO of Telefonica Germany), the management team of Philion SE looks back on decades of experience in the international telecommunications market and has set itself a clear objective, i.e. to build up a leading network-independent service provider for all digital telecommunications products with the help of an effective buy-and-build strategy. In this context, Philion acts as a listed holding company and pursues an omni-channel strategy for its subsidiaries to combine the advantages of online commerce with the benefits of personal in-store service. The first steps were the takeover of Fexcom GmbH at the turn of the year 2017/18 and the investment in DEINHANDY at the end of 2018. The planned takeover of the OBS Group is a consistent continuation of this path. This means that the Group now has more than 160 mobile network stores and a fast-growing online trade throughout Germany.

Disclaimer
This announcement does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities. There will be no public offering of securities of Philion SE. This announcement does not constitute a securities prospectus. This announcement and the information contained therein are not intended for direct or indirect distribution in or within the United States of America, Canada, Australia or Japan.