Colt

Colt

Colt Investor presentation March 2015 2015 Colt Technology Services Group Limited. All rights reserved. Forward looking statements This presentation contains 'forward-looking statements' including statements concerning plans, future events or performance and underlying assumptions and other statements which are other than statements of historical fact. Colt Group S.A., ("the Group"), wishes to caution readers that any such forward looking statements are not guarantees of future performance and certain important factors could in the future affect the Group's actual results and could cause the Group's actual results for future periods to differ materially from those expressed in any forward looking statement made by or on behalf of the Group. These include, among others, the following: (i) any adverse change in regulations and technology within the IT services and communications industries, (ii) the Group's ability to manage its growth, (iii) the nature of the competition that the Group will encounter and wider economic conditions including economic downturns and (iv) unforeseen operational or technical problems. The Group undertakes no obligation to release publicly the results of any revision to these forward looking statements that may be made to reflect errors or circumstances that occur after the date hereof. No statement in this presentation is intended to be a profit forecast or to imply that the earnings of the Group for the current year or future years will necessarily match or exceed historical or published earnings. This presentation is for information purposes only and does not constitute an offering of securities. This presentation is not intended to provide the basis for any credit or other evaluation of any securities of the Group and should not be considered as a recommendation that any person should subscribe for, dispose of or purchase any such securities or enter into any other transaction with the Group or any other person. 2 2 Colt provides a range of information and communication services to enterprises across cities in Europe, Asia and North America We We serve serve thousands thousands of of companies companies

18 19 With With Colt-owned Colt-owned infrastructure infrastructure in in 28 28 countries countries 47 205 22,000 Connected Connected cities cities Direct Direct fibre fibre connected connected buildings buildings 521 86 of of the the top top 25

25 bank bank and diversified and diversified financial financial groups groups of of the the top top 25 25 companies companies in both global in both global media media and and telecoms telecoms industries industries Metropolitan Metropolitan area area networks networks (MANs) (MANs) 50 13 29 Financial

Financial exchanges exchanges 3 3 European European central central banks banks Managed Managed data data centres centres globally, 22 globally, 22 in in Europe Europe and and seven seven in inAsia Asia Connected Connected third third party party data data centres centres Countries Countries where where Colt Colt provides

provides aa service service to to customers customers Business model Colt directly serves thousands of enterprise and wholesale customers, and indirectly serves SMEs via channel partners Key value drivers for customers are flexibility, security, reliability and seamless delivery across technologies and geographies We focus on: 1. serving information intensive businesses, in key cities; 2. delivering exceptional customer experience; and 3. getting the most from our assets (international breadth and local depth of infrastructure, and our people) We provide a range of individual services to seamlessly integrated solutions in network, voice, data centre and IT Our global operations are supported by shared service centres. As we expand to new cities, this structure provides the opportunity to improve operational efficiency and profitability Our balance sheet can support necessary organic and inorganic investments. Dividends are not a priority as we invest in the full execution of our strategy 4 4 Recent financial evolution 5 5 Our services Network Voice

We provide We provide We provide We provide Access & Bandwidth ethernet P2P link (SDH) high speed services dark fibre, wavelengths internet access broadcast services Enterprise Voice Colocation Infrastructure Managed networking Wholesale Voice EPN, IPVPN from specific rack space to entire data centre halls voice line conferencing VAS VoIP IN services unified communications IT

private, hybrid and multi tenant solutions professional services infrastructure management Platforms Workloads Backed by Backed by Backed by Backed by 47 MANs, 28 countries Over 20 billion voice minutes on TDM platform 29 Colt managed data centres with 22 in Europe and 7 in Asia Most expansive cloud infrastructure in Europe Both legacy TDM and next generation VoIP platforms, helping customers with the transition 52,500 m2 built out white space 77% utilised white space

Sites in UK, France, Germany, Spain, Italy, the Netherlands and Hong Kong 53 MW built out power 205 connected cities >22,000 directly fibred buildings 521 connected third party data centres 6 6 Data Centre 99.9% platform availability Portfolio mix evolution Cloud services Managed networking Ethernet (Voice & Data) Legacy hosting 7 7 Legacy

bandwidth Legacy voice (SDH now <8% of Network Services revenue. High margin product) (MTR/FTR c23m revenue impact and c13m EBITDA impact in 2014) Colocation services Our global network and IT infrastructure 8 8 Our strategic priorities Markets Customers Focus on information intensive industries and geographies Capital markets Business services Media Fixed line carriers

Cloud providers Mobile network operators Making it easier for our customers to do business with us Automate our service and delivery model Assets 9 9 Global cities Operate seamlessly and transparently across technologies and geographies Offer the most flexible and efficient services Better leverage our existing infrastructure Maximise utilisation of our network infrastructure Better fill rates in our existing data centre estate More efficient use of voice platforms for higher margin enterprise voice Optimising IT services on fewer platforms Lines of business performance in 2014 Revenue: 1,495.5m EBITDA: 297.1m 19.9%

Capex: 245.5m Network Services Voice Services Cash generation** IT Services Revenue: 77.8m EBITDA: -25.8m -33% Capex: 24.9m Cash consumption** * Profit 10 / Loss is EBITDA margin as a percentage of revenue ** Cash generation / consumption is EBITDA less capex 10 Data Centre Services Profit* Loss* Revenue: 841.5m EBITDA: 234.8m 28% Capex: 164.6m Revenue: 452.1m EBITDA: 60.3m 13% Capex: 11.7m

Revenue: 144.6m EBITDA: 17.4m 12% Capex: 23.1m (all pro-forma numbers) Revenue: 120.2m EBITDA: 27.4m 23% Capex: 29.2m Network services Financials Managed networking, Ethernet, IPVPN SDH (now <8% of total NS revenue) Profitable and cash generative, but Flat revenue growth Mix evolution impact on margin Underutilisation of our assets Growth initiatives Mitigating margin pressures by increasing utilisation of our existing infrastructure Focus on information intensive verticals capital markets and media teams created Bring cloud service providers on-net Provide mobile backhaul to MNOs first contracts won and discussion with others Expand network footprint to new cities Value proposition Combination of local depth and international breadth means we can provide appropriate solutions from basic point-to-point services and internet access to end-to-end managed network solutions Business grade quality of service and flexibility required by enterprise customers Competitors Incumbents: BT, DT, Orange, TEF Global altnets: Level 3

11 11 Regional altnets: euNetworks, Interoute Local altnets: cable operators, Versatel Voice services Financials Focus on cash generation, but Regulatory impact on revenue and profits Opportunity to maximise our platform IP products, IN, apps Legacy TDM voice Growth initiatives Withdrawal from low margin business Support customers in migration from TDM infrastructure to converged IP access Increase focus on: Enterprise voice Intelligent networking VoIP / SIP trunking Unified communications Value proposition Focus on multi-country provision Delivering consistent end-to-end customer experience across Western Europe and Asia to enterprise and wholesale customers Competitors Incumbents: BT, DT, Orange, TEF Global altnets: Level 3 12 12 Local altnets: cable, Versatel Mobile players, voice OTT and

applications: Skype, Microsoft Lync Data centre services Financials Profitable and cash generative, but Has not invested at the same rate as the market Need to maximise use of our assets Growth impacted by historical defocus from colocation Colocation ftec and installations Growth initiatives Vertical focus on financial, business services, media, cloud providers and systems integrators Increased focus on colocation New cities (tier 2 in Europe, tier 1 outside Europe) Development of product and value propositions for Cloud enablement Enhanced carrier neutrality Value proposition Energy efficient, resilient facilities with advanced technology, run by local teams in multiple locations Capacity on demand so customers can scale where needed, with flexible commercial terms Location is key. Colt operates 29 data centres globally, with 22 in Europe and 7 in Asia and Colt also directly connects to a further 521 third party data centres Low PUE of 1.21 in our latest generation data centres Competitors Wholesale: Digital Realty, Coresite, Dupont Fabros Retail colocation: Telecity, Interxion, Equinix Local operators 13 13

IT services Financials Unprofitable - in transformation Invested in product components and service capability underpinning our cloudbased platforms in Europe and Asia Cost base too high for revenue Not leveraging our platforms sufficiently Cloud private / hybrid / shared Legacy hosting Asset sales, installations and professional services Growth initiatives Colt recognised as a Leader in Gartners Magic Quadrant for Cloud-Enabled Managed Hosting, Europe1 Leverage strong product reputation Narrowing focus of our platforms to match customer propositions Portfolio of reusable standard components 14 14 Focus on key geographies Rightsize and transform cost base Key propositions only: enterprise application hosting; mission critical webhosting and end user services Value proposition Transition customers from capex intensive DIY to flexible, opex-based outsourced IT Integrate cloud with traditional hosting, managing both old and new technologies in one seamless service Customers benefit from our multiple locations across Europe and Asia, meaning customer can ensure their data is where it needs to be, secure and fully compliant with regulations

Competitors Outsourcers: Infosys, Wipro, Accenture Enterprise hosting: Savvis, Terremark, Rackspace Public cloud: AWS, Google, Azure Regional App hosting: Phoenix, Attenda, Pironet, Claranet Gartner, Magic Quadrant for Cloud-Enabled Managed Hosting, Europe, Tiny Haynes, Gianluca Tramacere, Lydia Leong, Gregor Petri, Douglas Toombs, Bob Gill; July 2014. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose 1 Colt in Asia KVH Asia acquisition completed and consolidated from 22 December 2014 millions FY 2014 Acquired for 128m cash Revenue (proforma) 145 Adds Asia network and data centre capability to Group: (data centres in Tokyo (x3), Osaka, Hong Kong, Singapore, and Busan)

Consolidated 3.9 EBITDA (proforma) 17 Consolidated 0.4 Capex (proforma) 23 Delivering expected revenue growth and profitability Full run rate annual cost and capex synergies of 8.5m by 2017 + revenue synergy potential Medium term targets of: mid-to-high single digit % revenue growth and EBITDA to return to historical 20%+ levels 15

15 YOY change 8% p (12)% p 41% p Looking to the future Network Services Cash generation** Voice Services IT Services Data Centre Services Profit* We are focused on: Cash consumption**

Profitable revenue growth Cost and capex control to deliver positive FCF * Profit / Loss is EBITDA margin as a percentage of revenue ** Cash generation / consumption is EBITDA less capex 16 16 Continued improvement in reputation with customers 17 17 Aim to be the most customer oriented business in our industry Year on year improvements but more work to do to become best in class Colt Corporate Social Responsibility Colts CSR programme, 2015 targets: Environment Drive a further 1.5GWh power efficiency Increase audio and video conferencing usage by 5% to mitigate business travel Maintain ISO 14001 certification and deliver continuous improvements Customers and suppliers Continue to improve our customer experience, demonstrate through further increase our Net Promoter Score

Continued assessment of our top strategic suppliers and share best practices People Conduct annual survey with greater benchmark information and granularity of analisys Maintain alignment to 18001 and continue to drive system improvements across our portfolio Community 18 18 Increase annual volunteering hours to 10,000 by 2015 Investment history City of London Telecommunications established in 1992, funded by Fidelity Investments. UK PTO licence awarded and 1st customer connected in London in 1993 19 19 IPO on LSE and NASDAQ in 1996 1.5bn debt raised from 1996-2001 499m equity raised in 2001

Open offer in 2006 raised $560m Open offer in 2009 raised $253m, final debt repaid Revolving credit facility for 150m raised in 2014 KVH acquired for 128m in December 2014 In summary, Colt is A seamless provider of information and communication solutions across technologies and global city geographies with scalable assets and systems Focused on information intensive businesses, and geographies (cities) exceptional customer experience efficient utilisation of our assets A growth business we will continue to invest for profitable growth while improving cost control, returns on investment and free cash flow 20 20 For further information Colt website links: http://colt.net/ http://www.colt.net/uk/en/investor-relations/index.htm Investor relations: Morten Singleton Vice President Investor Relations DDI: +44 (0) 20 7863 5314 Mobile: +44 (0) 20 7535 445159 Colt Technology Services Group Limited, Beaufort House, 15 St Botolph Street, London, EC3A 7QN UK 21 21

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