COLT Q3 2008 Results Analyst Conference Call
23 October 2008
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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Rakesh Bhasin
Chief Executive Officer
Summary results
Q3 08 420.7 232.3 39.8 90.9 76.7 18.6 18.8 55.2 Q3 07 419.4 214.6 38.8 92.7 69.9 8.7 15.8 51.2
Change*
€m Total revenue Data revenue GMBD % SG&A EBITDA PBT Free cashflow Data % of total
All numbers exclude exceptional item * Favourable (adverse) change
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Q2 08 416.3 225.6 39.2 86.8 76.5 16.5 2.9 54.2
Change*
1.3 17.7 1.0 1.8 6.8 9.9 3.0
4.4 6.7 0.6 (4.1) 0.2 2.1 15.9
Highlights
> Continuing to make good progress despite increasing challenges in wider economy
– Outlook uncertain – No material loss of existing business – Data revenue growth continues – Solid performance in Q3
> Creating COLT Managed Services (CMS) division > COLT India – next steps
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Tony Bates
Chief Operating Officer and Acting Group CFO
Headlines
€m Total revenue Data revenue GMBD % SG&A EBITDA PBT Free cashflow Q3 08 420.7 232.3 39.8 90.9 76.7 18.6 18.8 Q3 07 419.4 214.6 38.8 92.7 69.9 8.7 15.8
Trading change* Currency Impact
Q2 08 416.3 225.6 39.2 86.8 76.5 16.5 2.9
Trading change*
Currency impact
13.5 26.0 1.0 (5.3) 3.9 4.5 (3.1)
(12.2) (8.3) 7.1 2.9 5.4 6.1
4.5 6.9 0.6 (4.2) 0.1 2.0 15.8
(0.1) (0.2) 0.1 0.1 0.1 0.1
All numbers exclude exceptional item *At constant € exchange rates Favourable (adverse) change
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Revenue
Q3 08 €m
Trading change v Q3 07 % Currency impact v Q3 07 % Trading change v Q2 08 % Currency impact v Q2 08 %
Data Corp & Reseller voice Carrier voice Total voice Total Deferred revenue (€m)
232.3 128.6 59.8 188.4 420.7 199.3
12.1 (6.6) (5.0) (6.1) 3.2 33.7
(3.9) (2.0) (1.6) (1.9) (2.9) (11.2)
3.1 (2.5) 1.5 (1.2) 1.1 9.6
(0.1) -
Favourable (adverse) change
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Revenue - Business Divisions
Q3 08 €m Major Enterprise Data Corp & Reseller voice Total SME Data Corp & Reseller voice Total Wholesale Data Corp & Reseller voice Carrier voice Total voice Total
Favourable (adverse) change
Trading change v Q3 07 %
Currency impact v Q3 07 %
Trading change v Q2 08 %
Currency impact v Q2 08 %
134.1 42.3 176.4 46.5 67.3 113.8 51.7 19.0 59.8 78.8 130.5
12.3 (1.3) 8.7 8.8 (8.3) (2.1) 14.6 (11.6) (5.0) (6.7) 1.0
(4.0) (4.1) (4.0) (2.9) (1.4) (1.9) (4.4) (0.2) (1.6) (1.2) (2.4)
3.3 (3.2) 1.7 1.0 (3.9) (1.9) 4.3 4.4 1.5 2.3 3.1
(0.1) -(0.1) 0.3 0.1 (0.3) 0.2 (0.1)
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Cash flow
€m EBITDA Capital expenditure Deferred revenue Working capital Provisions Interest Free cash flow Exceptional item Other finance cash flows Total cash flow Net debt
Q3 08
76.7 (78.0) 9.6 8.3 9.2 (1.0) 2.3 18.8 18.8 (10.2)
Q3 07
69.9 (66.9) 2.0 5.0 8.2 0.4 2.2 15.8 15.8 (48.2)
Q2 08
76.5 (85.7) 4.3 (4.9) 16.9 (1.0) (8.1) 2.9 17.0 0.2 20.1 (29.0)
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Capital expenditure
Q3 08 €m 1. Success driven – Data 2. Success driven – CMS Total success driven 3. Other Total capital expenditure
Definitions:
% of total
Q3 07 €m
% of total
Q2 08 €m
% of total
45.3 47.3 13.5 15.2 58.8 62.5 19.2 15.5 78.0
60.6 19.5 80.1 19.9 100.0
40.5 7.6 48.1 18.8 66.9
60.5 11.5 72.0 28.0 100.0
50.3 21.1 71.4 14.3 85.7
58.6 24.7 83.3 16.7 100.0
1. Customer premises equipment and 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, office infrastructure
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