COLT Q4 2008 Results Analyst Conference Call
20 February 2009
Not for release, publication or distribution in the United States, Canada, Japan or New Zealand, or any other jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction
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 Telecom 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 the laws, regulations and policies governing the ownership of telecommunications licenses, (ii) the ability of the Group to expand and develop its networks in new markets, (iii) the Group’s ability to manage its growth, (iv) the nature of the competition that the Group will encounter and (v) 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.
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Advertisement
This is not a Prospectus but an advertisement. Investors should not subscribe for the shares referred to in this advertisement except on the basis of information in the Prospectus. A Prospectus will be published and investors will be able to obtain it from the offices of Computershare, The Pavilions, Bridgwater Road, Bristol BS13 8AE, United Kingdom.
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Rakesh Bhasin
Chief Executive Officer
Open Offer summary
> €201m before costs > Fully underwritten by certain Fidelity Parties (FMR LLC and FIL Limited) > Secures working capital position (taking into account obligation to repay €262.2m of outstanding Notes this year) while providing financial flexibility to progress further with strategy particularly in expanding capabilities in Data and Managed Services
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Financial headlines
€m Total revenue Data revenue GMBD % SG&A EBITDA PBT Free cashflow 2008 1,675.4 916.0 39.4 355.8 303.9 54.9 28.7 2007 1,679.6 842.6 38.5 369.3 277.4 39.2 37.3 Q4 08 427.5 237.4 39.5 90.4 78.6 11.2 23.5 Q4 07 424.6 220.9 39.6 96.2 71.8 13.5 18.4
All numbers exclude exceptional items
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Highlights 2008
> Good progress despite increasing challenges of the wider economy
– Data revenue growth slowing slightly – Margins are stable – EBITDA continues to improve – Net cash positive at end of year
> Progress on NGN and three major Data Centre expansions
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Tony Bates
Chief Operating Officer and Acting Group CFO
Open Offer detail
> Issue of COLT ordinary shares to raise €201m before costs > Offer fully underwritten by certain Fidelity Parties > Transaction costs less than €3m > 31 Open Offer shares for every 100 Existing Shares > Offered at 84.5p, yesterday’s closing price > Closes 17 March > New shares expected to be listed 23 March
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Headlines – 5 Year Summary
€m Total revenue Data revenue GMBD % SG&A EBITDA PBT Free cashflow EBITDA %
All numbers exclude exceptional items
2004 1,796.6 694.9 33.2 366.7 230.2 (162.0) (14.2) 12.8
2005 1,821.7 717.9 34.6 377.1 253.7 (129.6) 10.7 13.9
2006 1,801.0 767.2 35.2 363.9 270.9 (9.5) 28.4 15.0
2007 1,679.6 842.6 38.5 369.3 277.4 39.2 37.3 16.5
2008 1,675.4 916.0 39.4 355.8 303.9 54.9 28.7 18.1
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Headlines – Quarterly Summary
€m Total revenue Data revenue GMBD % SG&A EBITDA PBT Free cashflow Q4 07 424.6 220.9 39.6 96.2 71.8 13.5 18.4 Q1 08 410.9 220.7 38.9 87.7 72.1 8.6 (16.5) Q2 08 416.3 225.6 39.2 86.8 76.5 16.5 2.9 Q3 08 420.7 232.3 39.8 90.9 76.7 18.6 18.8 Q4 08 427.5 237.4 39.5 90.4 78.6 11.2 23.5
All numbers exclude exceptional item
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Headlines – Q4
€m Total revenue Data revenue GMBD % SG&A EBITDA PBT Free cashflow Q4 08 427.5 237.4 39.5 90.4 78.6 11.2 23.5 Q4 07 424.6 220.9 39.6 96.2 71.8 13.5 18.4
Trading change* Currency Impact
Q3 08 420.7 232.3 39.8 90.9 76.7 18.6 18.8
Trading change*
Currency impact
15.4 24.8 (0.1) (1.7) 3.4 (8.9) 1.3
(12.5) (8.3) -7.5 3.4 6.6 3.8
10.2 7.3 (0.3) (1.5) 1.2 (9.0) 3.6
(3.4) (2.2) -2.0 0.7 1.6 1.1
*At constant € exchange rates Favourable (adverse) change
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Revenue
Q4 08 €m
Trading change v Q4 07 % Currency impact v Q4 07 % Trading change v Q3 08 % Currency impact v Q3 08 %
Data Corp & Reseller voice Carrier voice Total voice Total Deferred revenue (€m)
237.4 127.8 62.3 190.1 427.5 185.1
11.2 (9.5) 7.2 (4.6) 3.6 23.6
(3.7) (1.7) (3.0) (2.1) (2.9) (21.8)
3.1 (0.3) 5.4 1.5 2.4 2.0
(0.9) (0.4) (1.1) (0.6) (0.8) (16.2)
Favourable (adverse) change
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Revenue - Business Divisions
Q4 08 €m Major Enterprise Data Corp & Reseller voice Total SME Data Corp & Reseller voice Total Wholesale Data Corp & Reseller voice Carrier voice Total 136.5 41.2 177.7 49.2 66.8 116.0 51.7 19.8 62.3 133.8
Trading change v Q4 07 % Currency impact v Q4 07 % Trading change v Q3 08 % Currency impact v Q3 08 %
12.0 (10.8) 5.7 11.3 (8.9) (1.3) 9.1 (8.8) 7.2 5.3
(3.8) (3.7) (3.8) (2.7) (0.8) (1.5) (4.4) -(3.0) (3.1)
2.5 (1.2) 1.6 6.7 (0.6) 2.4 1.5 3.4 5.4 3.6
(0.7) (1.4) (0.9) (0.9) (0.1) (0.5) (1.5) 0.6 (1.1) (1.1)
Favourable (adverse) change
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Cash flow
€m EBITDA Capital expenditure Deferred revenue Working capital Provisions Interest Free cash flow Other finance cash flows Total cash flow Net funds/(debt)
Q4 08
78.6 (78.9) 2.4 2.1 29.5 (1.2) (6.9) 23.5 -23.5 11.4
Q4 07
71.8 (73.7) 11.3 9.4 16.9 (0.2) (7.7) 18.4 0.1 18.5 (31.1)
Q3 08
76.7 (78.0) 9.6 8.3 9.2 (1.0) 2.3 18.8 -18.8 (10.2)
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Capital expenditure
Q4 08 €m 1. Data
% of total
Q4 07 €m
% of total
Q3 08 €m
% of total
2. Managed Services Total success based 3. Other Total capital expenditure
Definitions:
45.7 13.1 58.8 20.1 78.9
57.9 16.6 74.5 25.5 100.0
49.7 8.9 58.6 15.1 73.7
67.4 12.1 79.5 20.5 100.0
47.3 45.3 15.2 13.5 62.5 58.8 15.5 19.2 78.0
60.6 19.5 80.1 19.9 100.0
1. Capital expenditure on customer premises equipment and additional capacity primarily linked to new data revenue customer contracts 2. Build out of data centres and customer specific capital expenditure within data centres 3. IT, core network, new product development and office infrastructure
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