Colt Telecom Group SA (Britain)
CREDIT SNAPSHOT 04/04/09
01 DEBT DISTRIBUTION 02 BONDS 03 INCOME STATEMENT 04 CASH FLOW 05 BALANCE SHEET Capital Bank Leveraged Finance Research Tel. Fax. e-mail Bloomberg Blog (43-316) 8072-2356 (43-316) 8072-7120 highyield@cbank.at GRAZ www.highyieldblog.com 06 COVERAGE RATIOS 07 LEVERAGE RATIOS 08 ENTERPRISE VALUE 09 RETURN ON CAPITAL 10 RECOVERY & TANGIBLE NET WORTH 11 ACCOUNTING RED FLAGS 12 LATEST SEC FILINGS 13 LEGAL DISCLAIMER
COLT LN Equity
equity ticker: bond ticker: sector: subgroup: COLT LN COLTLN Communications Telecom Services capitalisation (EUR in millions): stock price shares outstanding (million) market capitalisation (EUR mm) total debt cash + marketable securities other capital enterprise value (excl. cash) current EV / TTM EBITDA GBp 88 891.49 864 262 274 0 852 2.7x
company description: COLT Telecom Group SA offers business communications services across Europe. Through its fiber optic network, the Company offers voice, bandwidth, e-business, and managed network services to finance, industry and service sector customers, and governments.
The company's next report is expected for 5/1/2009 (type: Confirmed). Colt Telecom Group SA has 4,425 employees. www.colt.net
The distribution of this report is restricted. Important information concerning these restrictions and legal disclaimer is set forth at the end of this report.
01
Colt Telecom Group SA
issuer bCOLT TELECOM GROUP SA bCOLT TELECOM GROUP SA Rtg debt type & details B+ B+ Bond, callable, sr unsecured, fixed Bond, callable, sr unsecured, fixed coupon 7.625% 7.625% mat 12/15/2009 12/15/2009 crncy EUR EUR amount out (mm) 2 260 facility amount (mm) issue date 12/16/1999 5/31/2000
DEBT DISTRIBUTION Total amount out of instruments listed above (EUR in MM) Total debt (MM)
262 Cash (MM) 262 Total Number of Debt Instruments (for the issuer and its subs)
274 2
Loans 300 250 200 150 100 50 0
Bonds
Moody's Ratings Outlook Issuer Senior Secured Debt LT Corp Family Bank Loan Debt Senior Unsecured Debt Subordinated Debt Short Term POS WR N/A B1 N/A N/A N/A N/A 03/24/09 03/24/09 08/16/05
Standard & Poor's Ratings Outlook LT Foreign Currency Issuer LT Local Currency Issuer ST Foreign Currency Issuer ST Local Currency Issuer STABLE BBBBN/A N/A 03/24/09 03/24/09 03/24/09
>2031
2008
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2020
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BONDS id EC258186
02
issuer
Colt Telecom Group SA
COLT TELECOM GROUP SA 7.625% 12/2009 EUR
-5 0 5
-20 10 15 20 25
-15
-10
-500
COLT TELECOM GROUP PLC
-2000 100 120 20 40 60 80 0 bond price yield interpolated swap spread
-1500
-1000
1000
1500
2000
500
0
coupon
7.625 12/15/09 EUR 259,889,000 B
mat outstanding S&P
Total Debt for the company currently stands at EUR 262.2mm.
MDY
B2 99.50 8.3
ask px yield
Prices & yields bid side to 28/7/08 and ask side thereafter. Spread is Govt Bid Sprd to 28/7/08 and Interpol. Swap Ask Sprd then.
01 /3 1 02 /07 /2 8/ 07 03 /3 1/ 04 07 /3 0/ 07 05 /3 1/ 06 07 /3 0/ 07 07 /3 1/ 07 08 /3 1/ 09 07 /3 0/ 07 10 /3 1/ 11 07 /3 0/ 07 12 /3 1/ 07 01 /3 1/ 02 08 /2 9/ 08 03 /3 1/ 04 08 /3 0/ 08 05 /3 1/ 06 08 /3 0/ 07 08 /3 1/ 08 08 /3 1/ 09 08 /3 0/ 08 10 /3 1/ 11 08 /3 0/ 12 08 /3 1/ 08 01 /3 1/ 09 01 /3 1 02 /07 /2 8/ 03 07 /3 1/ 04 07 /3 0/ 05 07 /3 1/ 06 07 /3 0/ 07 07 /3 1/ 08 07 /3 1/ 09 07 /3 0/ 10 07 /3 1/ 11 07 /3 0/ 12 07 /3 1/ 01 07 /3 1 02 /08 /2 9/ 03 08 /3 1/ 04 08 /3 0/ 05 08 /3 1/ 06 08 /3 0/ 07 08 /3 1/ 08 08 /3 1/ 09 08 /3 0/ 10 08 /3 1/ 11 08 /3 0/ 12 08 /3 1/ 01 08 /3 1/ 09
spread*
636
01 /3 1 02 /07 /2 8/ 03 07 /3 1/ 04 07 /3 0/ 05 07 /3 1/ 06 07 /3 0/ 07 07 /3 1/ 08 07 /3 1/ 09 07 /3 0/ 10 07 /3 1/ 11 07 /3 0/ 12 07 /3 1/ 01 07 /3 1/ 02 08 /2 9/ 03 08 /3 1/ 04 08 /3 0/ 05 08 /3 1/ 06 08 /3 0/ 07 08 /3 1/ 08 08 /3 1/ 09 08 /3 0/ 10 08 /3 1/ 11 08 /3 0/ 12 08 /3 1/ 01 08 /3 1/ 09
*interpol. swap spread 02/17/09
px date
03
Colt Telecom Group SA
EUR in millions Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 12/31/08 Revenues COGS COGS % of Revenues SG&A SG&A % of Revenues 425 303 71.3% 104 24.4% 73 6 12 14 17.1% 4.3% 411 301 73.3% 96 23.2% 72 6 8 9 17.5% 3.4% 416 270 64.9% 126 30.3% 77 6 15 34 18.4% 4.9% EBIT Margin 20.3% 421 302 71.9% 98 23.2% 77 6 15 19 18.2% 4.9% 428 339 79.3% 59 13.8% 87 6 24 11 20.3% 6.8% 1,821 1,476 81.0% 424 23.3% 615 68 -147 -491 33.8% -4.3% 33.8% 1,801 1,383 76.8% 395 21.9% 270 45 -21 -20 15.0% 1.3% 1,680 1,227 73.0% 397 23.6% 278 24 32 39 16.6% 3.3% 05 06 07 08 12/31/08 1,675 1,213 72.4% 378 22.6% 312 23 62 72 18.6% 5.0%
INCOME STATEMENT
EBITDA Interest Expense EBT Net Income EBITDA Margin EBIT Margin
EBITDA Margin
18.4%
16.6%
16.7%
17.1%
17.5%
18.2%
16.0%
15.9%
14.6%
14.0%
6.8%
7.0%
12.8%
15.0%
16.6%
18.6% 3.3% 08 07 5.0% 08 12/31/08 1,675 312 228 84 23 62 72 56 24 32 39 08 312 1,680 278 222 07 278
4.9%
4.3%
3.3%
3.2%
1.5%
2.8%
3.1%
3.4%
4.9%
EUR in millions TTM INCOME STATEMENT
Q4 07
Q1 08
Q2 08
Q3 08
Q4 08 12/31/08
-18.5%
-6.8%
-5.3%
05
-4.3%
Q3 06
Q4 06
Q1 07
Q2 07
Q3 07
Q4 07
Q1 08
Q2 08
Q3 08
Q4 08
02
03
04
05
06
1.3%
07
06
TTM Revenues TTM EBITDA TTM D&A TTM EBIT TTM Interest Expense TTM EBT TTM Net Income TTM Revenues TTM Revenues
1,680 278 222 56 24 32 39
1,665 282 224 58 23 35 40
1,671 291 226 66 23 42 64
1,673 298 224 73 23 50 74
1,675 312 228 84 23 62 72
1,821 615 694 -79 68 -147 -491 TTM EBITDA EBITDA
1,801 270 246 24 45 -21 -20
1,821
1,801
1,680
1,675
1,680
1,671
1,673
1,675
1,665
278
282
291
298
312
615
Q4 07
Q1 08
Q2 08
Q3 08
Q4 08
05
06
07
08
Q4 07
Q1 08
Q2 08
Q3 08
Q4 08
05
06
TTM EBT
TTM Interest Expense
TTM D&A
694
222 24 32 Q4 07
224 23 35 Q1 08
226 23 42 Q2 08
224 23 50 Q3 08
228 23 62 Q4 08 68 -147 05
246 45 -21 06
222 24 32 07
228 23 62 08
270
04
Colt Telecom Group SA
EUR in millions Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 12/31/08 05 06 07 08 12/31/08 193 -183 10 -332 249 -229 19 -151 297 -260 37 0 356 -310 46 -3
CASH FLOW
Cash from Operations (CFO) Cash from Investing (CFI) Free Cash Flow (CFO + CFI) Cash from Financing Activities
83 -74 10 9 Cash from Operations (CFO)
51 -68 -17 0
106 -86 20 0
97 -78 19 0
102 -79 24 -4
Free Cash Flow (CFO + CFI)
400 350 300 250 200 150 100 50 0 -50 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 02 03 04 05 06 07 08
EUR in millions
Q4 07
Q1 08
Q2 08
Q3 08
Q4 08 12/31/08
05
06
07
08 12/31/08
TTM Cash from Operations (CFO) TTM Cash from Invest. (CFI) TTM Capex TTM D&A TTM Free Cash Flow (CFO + CFI) TTM Cash from Financing Activities TTM CFO - Capital Expenditures TTM CASH FLOW TTM EBITDA - Capital Expenditures TTM EBITDA - Capex - Change in WC TTM EBITDA-Capex-WC-CshIntEx-CshTax-CshDiv TTM CFO/Total Debt TTM FCF/Total Debt TTM Capex TTM D&A TTM Cash from Invest. (CFI)
297 -260 -261 -222 37 0 37 18 17
294 -265 -265 -224 29 1 29 17 17
323 -294 -294 -226 29 10 28 -3 -4
337 -305 -306 -224 32 10 31 -8 -8
356 -310 -311 -228 46 -3 45 1 1
193 -183 -185 -694 10 -332 8 430 430 378
249 -229 -232 -246 19 -151 17 38 38
297 -260 -261 -222 37 0 37 18 17
356 -310 -311 -228 46 -3 45 1 1
113.3% 14.2%
112.0% 11.1%
123.0% 10.9%
128.4% 12.1%
135.7% 17.4%
22.7% 1.2%
94.8% 7.3%
113.3% 14.2%
135.7% 17.4%
TTM EBITDA - Capital Expenditures 430 -261 -222 -260 -311 -228 -310
-261 -222 -260
-265 -224 -265
-306 -224 -305
-294 -226 -294
-311 -228 -310
-185
-183 -694
-232 -246 -229
18
17 -3 -8 Q3 08
38 1
18
1
Q4 07
Q1 08
Q2 08
Q3 08
Q4 08
05
06
07
08
Q4 07
Q1 08
Q2 08
Q4 08
05
06
07
08
TTM EBITDA - Capex - Change in WC
TTM EBITDA-Capex-WC-CshIntEx-CshTax-CshDiv
500 450 400 350 300 250 200 150 100 50 0 -50
Q4 07
Q1 08
Q2 08
Q3 08
Q4 08
05
06
07
08
05
Colt Telecom Group SA
EUR in millions Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 12/31/08 Cash Marketable Securities / ST Investments Accounts & Notes Receivable Inventories & Unbilled Receivables Net Fixed Assets 75% of Accounts Receivable 30% of Inventories & Unbill. Rec. 10% of Net Fixed Assets Collateral (Liquidation) Asset Value 120 541 -33 34 262 31 206.3% 119 332 -26 26 262 49 126.7% 122 355 -24 32 262 29 135.4% 124 569 -30 34 262 10 216.8% 119 558 -272 20 262 -11 212.9% 121 650 114 5 851 524 76.3% 119 526 -33 29 262 66 200.7% 120 541 -33 34 262 31 206.3% 119 558 -272 20 262 -11 212.9% 1,198 190 1,192 1,217 1,241 192 1,194 165 1,212 201 1,191 211 1,198 190 1,194 165 253 257 220 268 281 253 220 231 213 233 252 274 327 196 231 05 06 07 08 12/31/08 274
BALANCE SHEET
Working Capital Net Other Long Term Assets & Liabs. Total Borrowings (includes ST Borrowings) Net Debt Collateral Asset Value / Total Borrowings
explanations and definitions: The approximation we use to calculate a company's total Collateral (Liquidation) Asset Value (for an asset based liquidation scenario) is calculated as the sum of Cash plus Marketable Securities / Short-Term Investments plus assets with the following valuation rates applied: 75% of stated Accounts Receivable 30% of stated Inventory 10% of stated Net Fixed Assets. Although we acknowledge that some industries and individual situations demand clearly different assumptions we nevertheless think this is a useful approximation across all industries covered, if only as a starting point for further individual in-depth analysis. 75% of Accounts Receivable 10% of Net Fixed Assets 30% of Inventories & Unbill. Rec. Working Capital 114
120 0
124 119 0 0
121 0
119 120 0 0 0 119 -33 -26 -24 -30 -33 -33
190 119 0 Q4 07 Q1 08 122 0 Q2 08
192
165
201
211
190
165
Q3 08
Q4 08
05
06
07
08
Q4 07
Q1 08
Q2 08
Q3 08
-272 Q4 08
05
06
07
-272 08
Net Other Long Term Assets & Liabs.
Total Borrowings (includes ST Borrowings)
Net Debt
34 26
34 32 29
34
851 262 262 262 262 262 524 262
20
20
262
31
49
29
10
66
-11
31
262 08 -11
5
Q4 07
Q1 08
Q2 08
Q3 08
Q4 08
05
06
07
08
Q4 07
Q1 08
Q2 08
Q3 08
Q4 08
05
06
07
Collateral Asset Value / Total Borrowings 216.8% 212.9%
206.3%
212.9% 200.7% 206.3%
126.7%
135.4%
As of 12/31/2008 the Pension Plan of Colt Telecom Group SA was underfunded by EUR -5mm. The discount rate used for the company's Pension Plan liabilities is 3.25%. 76.3%
Q4 07
Q1 08
Q2 08
Q3 08
Q4 08
05
06
07
08
06
COVERAGE RATIOS
Colt Telecom Group SA
EUR in millions Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 12/31/08 TTM EBITDA / TOTAL INTEREST TTM EBITDAR / TOTAL INTEREST+RENT TTM EBITDA-CAPEX / TOTAL INTEREST TTM EBITDAR-CAPEX / TOTAL INTEREST+RENT 11.8x 2.3x 0.7x 1.0x 12.1x 2.3x 0.7x 1.0x 12.6x 2.3x NM NM 12.8x 2.3x NM NM 13.7x 2.4x 0.1x 0.9x 9.1x 3.5x 6.4x 2.7x 6.0x 0.9x 11.8x 2.3x 0.7x 1.0x 05 06 07 08 12/31/08 13.7x 2.4x 0.1x 0.9x
explanations and definitions: TTM TOTAL INTEREST: For all coverage ratio calculations we use the Total Interest figure which in addition to Interest Expense also includes Capitalized Interest Expenses. We think this gives a better view of the economic reality than the simple Interest Expense figure.
TTM EBITDA / TOTAL INTEREST
TTM EBITDAR / TOTAL INTEREST+RENT 3.5x
13.7x 11.8x 12.1x 12.6x 12.8x 11.8x
13.7x
9.1x
2.3x
2.3x
2.3x
2.3x
2.4x
2.3x
2.4x
6.0x
0.0x Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 05 06 07 08 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 05 06 07 08
TTM EBITDA-CAPEX / TOTAL INTEREST 6.4x
TTM EBITDAR-CAPEX / TOTAL INTEREST+RENT 2.7x
1.0x
1.0x
0.9x
1.0x
0.9x
0.7x
0.7x 0.0x 0.0x 0.1x 05
0.9x
0.7x 0.1x 0.0x Q4 07 Q1 08 Q2 08 0.0x Q3 08 Q4 08 05 0.0x 06 07 08
Q4 07 Q1 08 Q2 08 Q3 08 Q4 08
06
07
08
07
Colt Telecom Group SA
EUR in millions Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 12/31/08 NET DEBT / TTM EBITDA 0.1x 0.9x 14.9x 3.7x 8.6x 334.1% 4.7x 0.2x 0.9x 15.2x 3.7x 8.6x 339.3% 4.5x 0.1x 0.9x NM 3.6x 9.6x 349.6% 4.0x 0.0x 0.9x NM 3.6x 9.9x 357.8% 3.6x NM 0.8x 187.3x 3.5x 9.4x 374.7% 3.1x 0.9x 1.4x 2.0x 2.7x 3.5x 227.6% NM 324.4% 11.0x 0.2x 1.0x 6.8x 0.1x 0.9x 14.9x 3.7x 8.6x 334.1% 4.7x 05 06 07 08 12/31/08 NM 0.8x 187.3x 3.5x 9.4x 374.7% 3.1x
LEVERAGE RATIOS
TOTAL DEBT / TTM EBITDA TOTAL DEBT / TTM EBITDA-CAPEX Rentadj. TOT DEBT / TTM EBITDAR Rentadj. TOT DEBT / TTM EBITDAR-CAPEX HAIRCUT EBITDA MULTIPLE / TOTAL DEBT TOTAL DEBT / TTM EBIT
explanations and definitions: Rent adj. Total Debt/TTM EBITDAR: This ratio is calculated by dividing the Rent Adjusted Total Debt figure (Total Debt plus 8 times TTM Rental Expenses) by EBITDAR (TTM EBITDA plus TTM Rental Expenses). HAIRCUT EBITDA MULTIPLE / TOTAL DEBT: We adjust TTM EBITDA to 70% of its stated value, multiply the result with 4.5 as an assumed exit multiple and relate the resulting figure (the haircut EBITDA multiple) to the TOTAL DEBT number. This ratio should reflect the situation of an issuer's liquidation, whereby the assets can be sold at a reduced EBITDA multiple.
NET DEBT / TTM EBITDA 0.9x
TOTAL DEBT / TTM EBITDA 187.3x
TOTAL DEBT / TTM EBITDA-CAPEX 187.3x
0.2x 0.2x 0.1x 0.1x 0.0x 0.0x Q4 08 05 06 07 0.1x 0.0x 08 14.9x 15.2x 0.9x 0.9x 0.9x 0.0x 0.9x 0.0x 0.8x Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 14.9x 6.8x 2.0x 1.0x 1.4x 0.9x 0.8x 05 06 07 08
Q4 07
Q1 08
Q2 08
Q3 08
HAIRCUT EBITDA MULTIPLE / TOTAL DEBT 374.7% 334.1% 339.3% 349.6% 357.8% 324.4% 334.1% 374.7%
Rentadj. TOT DEBT / TTM EBITDAR Rentadj. TOT DEBT / TTM EBITDAR-CAPEX
9.6x 8.6x 227.6% 8.6x
9.9x
9.4x 8.6x
9.4x
3.7x
3.7x
3.6x
3.6x
3.5x
3.5x 2.7x
3.7x
3.5x
0.0x 0.0x Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 05 06 07 08 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 05 06 07 08
TOTAL DEBT / TTM EBIT 11.0x
4.7x
4.5x 4.0x 3.6x 3.1x
4.7x 3.1x
0.0x Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 05 06 07 08
08
Colt Telecom Group SA
EUR in millions Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 12/31/08 EV / TTM EBITDA EV / TTM EBIT Enterprise Value TOTAL DEBT Equity Market Cap EV / TTM EBITDA 5.6x 5.2x 4.5x 5.3x 59.6x 5.6x 5.6x 28.0x 1,566 262 1,129 5.2x 25.4x 1,477 262 1,136 4.5x 19.8x 1,297 262 1,002 2.9x 11.9x 871 262 681 1.5x 5.5x 465 262 456 2.9x NM 1,755 851 844 5.3x 59.6x 1,418 262 911 5.6x 28.0x 1,566 262 1,129 05 06 07 08 12/31/08 1.5x 5.5x 465 262 456
ENTERPRISE VALUE
EV / TTM EBIT
2.9x
2.9x 28.0x 1.5x 1.5x 28.0x 19.8x 11.9x 5.5x 0.0x 5.5x
25.4x
Q4 07
Q1 08
Q2 08
Q3 08
Q4 08
05
06
07
08 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 05 06 07 08
TOTAL DEBT
EV - TOTAL DEBT 1,129 1,136 1,002
Equity Market Cap 1,129
911 844 903 681 1,304
1,304
1,215
1,156
1,035
456
456
609
262 203
851
Q4 07
Q1 08
Q2 08
Q3 08
Q4 08
05
06
07
08
262 203
262
262
262
262
262
262
Q4 07
Q1 08
Q2 08
Q3 08
Q4 08
05
06
07
08
COLT LN stock closing price
14000 12000 10000 8000 6000 4000 2000 0 Aug/99 Aug/00 Aug/01 Aug/02 Aug/03 Aug/04 Aug/05 Aug/06 Aug/07 Aug/08 Nov/99 Nov/00 Nov/01 Nov/02 Nov/03 Nov/04 Nov/05 Nov/06 Nov/07 Nov/08 Mai/99 Mai/00 Mai/01 Mai/02 Mai/03 Mai/04 Mai/05 Mai/06 Mai/07 Feb/00 Feb/01 Feb/02 Feb/03 Feb/04 Feb/05 Feb/06 Feb/07 Feb/08 Mai/08 Feb/09
09
Colt Telecom Group SA
EUR in millions Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 12/31/08 Adjusted Cap Rate 1.43% 890 78 6.3% 6.3% 4.1% 9.0% 1.61% 910 69 6.4% 6.4% 4.2% 8.9% 0 918 74 7.1% 7.1% 4.6% 8.8% 3.86% 917 76 8.0% 8.0% 5.2% 8.8% 8.76% 865 66 9.7% 9.7% 6.3% 8.7% -7.80% 961 57 -8.2% -8.2% -5.3% 7.9% -4.93% 916 75 2.6% 2.6% 1.7% 17.1% -3.13% 890 78 6.3% 6.3% 4.1% 9.0% 05 06 07 08 12/31/08 -6.59% 865 66 9.7% 9.7% 6.3% 8.7%
RETURN ON CAPITAL
Tangible Capital Total Intangibles Pre-tax ROIC After-tax ROIC (effective tax rate) After-tax ROIC (assumed tax rate) WACD (Pre-tax)
explanations and definitions: Adjusted Cap Rate: This ratio shows EBIT reduced by an assumed tax rate of 35% and adjusted for Net Non-Operating and Extraordinary Losses (Gains) - averaged over the last 5 years - divided by the Enterprise Value. Tangible Capital: Starting with the Total Book Capital the Tangible Capital figure is calculated by subtracting Intangibles, Cash and Marketable Securities as well as Short Term Investments. We calculate three different ROIC (Return on Invested Capital) figures: Pre-Tax ROIC: this ratio relates the trailing twelve months (TTM) EBIT to Tangible Capital as defined above. After-tax ROIC (effective tax rate): here EBIT is corrected by the company's effective tax rate as stated in it's latest financials, giving an after-tax ROIC rate. After-tax ROIC (assumed tax rate): here EBIT is corrected by an assumed tax rate of 35%, giving a modified after-tax ROIC rate. WACD (Pre-Tax): This rate is defined as trailing twelve months (TTM) TOTAL INTEREST EXPENSE divided by Total Borrowings.
Adjusted Cap Rate 8.8%
After-tax ROIC (assumed tax rate)
6.3% 4.2% 4.6% 5.2% 4.1%
6.3%
3.9% 1.4% 1.6% 2.2%
4.1%
1.7%
-3.1% -4.9% -6.6% -7.8% Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 WACD (Pre-tax) 17.1% 05 06 07 08 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 -5.3% 05 06 07 08
9.0%
8.9%
8.8%
8.8%
8.7%
9.0% 7.9%
8.7%
Q4 07 Q1 08 Q2 08 Q3 08 Q4 08
05
06
07
08
10
DEFAULT ESTIMATE
Colt Telecom Group SA
Average Bond Spread (in BPoints (1)) Estimated Bond Recovery Rate (2) Resulting Tolerable Default Rate (3)
636 100.0% NM
explanations and definitions: We calculate estimated default and recovery rates to be used in other credit models (f.i. for the valuation of CDOs or similar structures) as follows: (1) Average Bond Spread: Average Spread of all bonds listed on page 2 of this report. (2) Estimated Bond Recovery Rate: To calculate this rate we first divide the total debt amount into bond debt and loan debt that is senior to bond debt. As an approximation for the total amount of bond debt we use the sum of the amounts outstanding of all bonds listed on page 1 of this report. The total debt figure is reduced by this sum, giving us an approximate figure for debt that is senior to bond debt. We then calculate a collateral asset coverage figure for the bond debt by starting with the Collateral Asset Value (as defined on page 5 of this report) which we reduce by the amount of senior debt ahead of the bonds. The remaining Collateral Asset Value is then divided by the approximate bond debt amount as defined above, giving an estimated recovery value on a collateral asset basis. We apply the same logic to an EBITDA multiple ratio (as on page 7 of this report) and get a second recovery estimate based on the EBITDA multiple. The higher of the 2 estimates is used as the "Estimated Bond Recovery Rate". (3) Resulting Tolerable Default Rate: The implied default rate calculated using the Market Spread (1) and the Estimated Recovery Rate (2). With the given Market Spread and Estimated Recovery Rate it defines the maximum tolerable default probability for the risk premium paid in the form of Spread. Please note: This rate will only be displayed when it is greater than 0% and lower than 30% as we believe it is not meaningful ('NM') out of this range. Although we acknowledge that the calculated results are by no means exact, we think they make for a good estimate in the valuation of credit structures when individual default and recovery rates for single issuers are to be used.
EUR in millions
Q4 07
Q1 08
Q2 08
Q3 08
Q4 08 12/31/08
05
06
07
08 12/31/08
TANGIBLE NET WORTH
Total Assets Total Liabilites Total Intangibles Tangible Net Worth ESTIMATE Rent Debt (8x Annual Rental Expense) Underfunded Pension & Post Ret. Liab. Discount on Hard Assets Adjusted Tangible Net Worth
1,829 892 78 859 1,416
1,795 866 69 860 1,459
1,850 888 74 889 1,459
1,885 903 76 907 1,459
1,802 860 66 876 1,459 -5
1,942 1,448 57 437 1,198
1,820 895 75 850
1,829 892 78 859 1,416
1,802 860 66 876 1,459 -5
1,142 -1,699
1,072 -1,671
1,095 -1,666
1,181 -1,733
1,130 -1,718
1,158 -1,918
1,142 -292
1,142 -1,699
1,130 -1,718
11
Colt Telecom Group SA
EUR in millions Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 12/31/08 (CFO-Net Income)/Revenues yoy Revenue Growth Gross Margin Days Sales Outstanding Days Sales of Inventory Soft Assets 146 0 0 0 0 Gross Margin 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 29% 28% 0.3% 27% 20.0% 24% 26% 26% 23% 10.0% 0.0% 17% 14% 17% 35% 27% 38% 27% 28% 81% 16.4% -5.5% 28.7% 55 0 391 0 0 0 0 400 0 0 0 0 10.3% -3.5% 26.7% 17.3% 1.5% 35.1% 18.6% 0.3% 28.1% 56 0 136 0 0 0 0 21.3% 0.7% 20.7% 48 0 114 0 0 0 0 37.6% 1.4% 19.0% 54 0 134 0 0 1 2 14.9% -1.1% 23.2% 57 0 151 0 0 445 2 146 0 0 0 1 15.3% -6.7% 27.0% 55 05 06 07 08 12/31/08 16.9% -0.3% 27.6% 48 0 114 0 0 1 0
ACCOUNTING RED FLAGS
Unbilled Receivables Deferred / Unearned Revenue Allowance for Doubtful Accounts TTM Dividends Paid TTM Preferred Dividends Net Change in Capital Stock Non-Capex CFI (CFI less Capex)
yoy Revenue Growth
(CFO-Net Income)/Revenues
21% 0.7%
17% 3.2%
16% -5.5%
10%
18% -7.6%
17% -3.5%
1.5%
19%
18%
19% 1.4%
17% 6.5%
21%
20%
23%
11%
15% -1.1%
15% -6.7%
17% -0.3%
10%
-10.0% -20.0%
Days Sales Outstanding
Days Sales of Inventory
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0 07
Q3 06
Q4 06
Q1 07
Q2 07
Q3 07
Q4 07
Q1 08
Q2 08
Q3 08
Q4 08
02
03
04
05
06
Auditor Information: Current auditor Auditor's opinion Auditor's opinion - Definitions Not Audited / Unaudited Partially audited Unqualified Qualified: Limited Scope Qualified: Inconsistent Standards Qualified: not GAAP Qualified: uncertainty No tests were performed to verify amounts in financial statements. Typically applied to interim statement. Not all statements were audited. Auditor may specifically give opinion on one or two statements. Auditor declares, without reservation, that the financial statements fairly represent the company's financial position at a point in time and that the statements conform in all material respects to GAAP. An aspect of the company's financial statements could not be verified, such as a portion of inventory not counted. Accounting standards were not applied consistently between periods. Standard accounting principles for the country were not followed. Typically related to a unique line item and uses the phrase 'except for.' Doubt exists related to a material balance sheet item, such as value of investment or collectability of major receivable; or auditor doubts going concern ability of company. This opinion usually employs the phrase 'subject to.' Auditor refuses to state opinion on financial statements, typically due to lack of sufficient documentation provided by company and/or subsidiaries. PRICEWATERHOUSECOOPERS (as of 20.2.2009) Unqualified
Disclaimer
0 0 08
12
Colt Telecom Group SA
LATEST SEC FILINGS
Annual and transition report of foreign private issuers (Form Type 20-F)
Form 20-F -- Annual and transition report Form 20-F/A -- Annual and transition report Form 20-F -- Annual and transition report Form 20-F -- Annual and transition report http://www.sec.gov/Archives/edgar/data/1026733/000090873705000267/colt20f_2005.txt http://www.sec.gov/Archives/edgar/data/1026733/000090873704000589/colt20fa1_2004.htm http://www.sec.gov/Archives/edgar/data/1026733/000090873704000434/colt20f_2004.txt http://www.sec.gov/Archives/edgar/data/1026733/000090873703000287/colt20f_june2003.txt
end of period 12/31/04 12/31/03 12/31/03 12/31/02
Current report of foreign issuer (Form Type 6-K)
Form 6-K -- Report of foreign issuer Form 6-K -- Report of foreign issuer Form 6-K -- Report of foreign issuer Form 6-K -- Report of foreign issuer Form 6-K -- Report of foreign issuer Form 6-K -- Report of foreign issuer Form 6-K -- Report of foreign issuer Form 6-K -- Report of foreign issuer Form 6-K -- Report of foreign issuer Form 6-K -- Report of foreign issuer http://www.sec.gov/Archives/edgar/data/1026733/000119163806001504/ctm200606286k.txt http://www.sec.gov/Archives/edgar/data/1026733/000119163806001483/ctm200606266k.txt http://www.sec.gov/Archives/edgar/data/1026733/000119163806001240/ctm200605306k.txt http://www.sec.gov/Archives/edgar/data/1026733/000119163806001175/ctm200605236k.txt http://www.sec.gov/Archives/edgar/data/1026733/000119163806001137/ctm200605186k.txt http://www.sec.gov/Archives/edgar/data/1026733/000104746906006874/a2170326z6-k.htm http://www.sec.gov/Archives/edgar/data/1026733/000119163806001059/ctm200605106k.txt http://www.sec.gov/Archives/edgar/data/1026733/000119163806001035/ctm200605086k.txt http://www.sec.gov/Archives/edgar/data/1026733/000119163806000929/ctm200604276k2.txt http://www.sec.gov/Archives/edgar/data/1026733/000119163806000927/ctm200604276k.txt
filing date 06/28/06 06/26/06 05/30/06 05/23/06 05/18/06 05/11/06 05/10/06 05/08/06 04/27/06 04/27/06
Prospectus (Form Type 42..)
filing date
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