© 2010 colt technology services group limited. all rights reserved. colt tv 26 july 2012

© 2010 Colt Technology Services Group Limited. All rights reserved.

Colt TV26 July 2012

2

Today’s agenda

H1 Business update

Financial results

Becoming a solutions led business

Q&A

1

2

3

4

© 2010 Colt Technology Services Group Limited. All rights reserved.© 2010 Colt Telecom Group Limited. All rights reserved.

H1 Business update

Rakesh Bhasin

4

€ millions

Six months ended 30 June

2012 unaudited 2011 unaudited Movement

Revenue 797.9 766.2 4.2%

EBITDA 161.8 157.2 2.9%

Half year headlines

• Revenue growing, but not where we had hoped it would be. Spend not adjusted in line with revised forecasts

• Cost pressures - increased investment and foreign currency impact

• Solid performance in Carrier Voice but Corporate & Reseller declined

5

Business update

• Half-year growth for the first time in many years

• Pipeline increasing in quality and quantity and larger deals

• Economic uncertainty – higher churn from smaller accounts

• Continued positive sentiment towards our strategy

• More managed solutions sales - Network and IT

• More spend from larger accounts but can lead to “lumpy” revenue

6

External market news

Missed revenues by 5%

Cut guidance and eliminated 2012 dividends

Drop in profits and cut dividends

It’s a tough market out there

7

Six key programmes and TSAT

Customer satisfaction (TSAT)

Sales process

Service Delivery - new

Incident management

Billing queries

Renewal

Total

77%

81%

74%

62%

90%

74%

Making progress but a lot more to do in H2

Transactional Services Business

Speedboat

DCS Expansion

Portfolio Management

Profitability

Leadership and culture

Six key programmes

8

What we need to do now

• Continue to invest in our strategic agenda

• Understand our customers and deliver what they need – at speed

• Share ideas and think differently

• Efficiently execute projects

• Spend what we really have to – not what’s in our budget

We need to realise revenue faster and continue to manage our cost tightly


H1 results update

Mark Ferrari

10

H1 financial headlines

• Data revenue growth reflects continued take-up of Ethernet services but legacy bandwidth services continue to decline

• Managed Services revenue increased due to 2011 modular data centre contracts and an increase in sales activity with enterprise customers

• Carrier Voice upsurge driven by increased international traffic through new Voice trading platform. Corporate and Reseller decline due to price pressures

€ millions



Data 407.7 400.6 1.8%

Managed Services 99.9 86.6 15.4%

Voice 290.3 279.0 4.1%

11

How are our business units doing?

• CCS continues to develop the channel strategy to increase revenue and key focus remains on business automation

• CES good progress on Delta & Gamma programme. Increased appetite from customers to move from a DIY network provision to more of a Managed Service

• Continued market excitement around our modular product and overall pipeline increasing. New site acquired in Netherlands with anchor tenant.

€ millions



CCS 479.5 450.8 6.4%

CES 298.8 302.0 (1.1%)

DCS 19.6 13.4 46.3%

12

What the markets say

“Colt have succeeded where others have not”

Deutsche Bank

“Solid H1, story on track”

Morgan Stanley

“Colt has rediscovered growth”

Analyst: Andrew Darley

“A positive H1 trading update this morning ”

Analyst: Lorne Daniel


Inner Circle

15

• We want a high performance culture

• We will continue to invest in it

• So, the Inner Circle journey continues……to Istanbul!

• www.colt.net/innercircle

Inner Circle

© 2010 colt technology services group limited. all rights reserved. colt tv 26 july 2012

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