ColtInvestor presentation

March 2015

© 2015 Colt Technology Services Group Limited. All rights reserved.

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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.

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47Metropolitan

area networks(MANs)

18of the top 25 bank

and diversifiedfinancial groups

29Managed data centresglobally, 22 in Europe

and seven in Asia

19of the top 25 companies in both global media and

telecoms industries

50Financial exchanges

13European central banks

Colt provides a range of information and communication services to enterprises across cities in Europe, Asia and North America

We serve thousands of companies With Colt-owned infrastructure in 28 countries

205Connected

cities

521Connected third party

data centres

22,000Direct fibreconnectedbuildings

86Countries whereColt provides a

service to customers

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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

Business model

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Recent financial evolution

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Our services

47 MANs, 28 countries

205 connected cities

>22,000 directly fibred buildings

521 connected third party data centres

Backed by

Network

We provide

Access & Bandwidth

ethernet P2P link (SDH) high speed services dark fibre, wavelengths internet access broadcast services

Managed networking EPN, IPVPN

29 Colt managed data centres with 22 in Europe and 7 in Asia

• 52,500 m2 built out white space

• 77% utilised white space

• 53 MW built out power

Backed by

Data CentreWe provide

Colocation from specific rack space to entire data centre halls

Most expansive cloud infrastructure in Europe

Sites in UK, France, Germany, Spain, Italy, the Netherlands and Hong Kong

99.9% platform availability

 

Backed by

ITWe provide

Infrastructure

private, hybrid and multi tenant solutions professional services infrastructure management

Platforms

Workloads

Over 20 billion voice minutes on TDM platform

Both legacy TDM and next generation VoIP platforms, helping customers with the transition

Backed by

Voice

Enterprise Voice

voice line conferencing VAS VoIP IN services unified communications

Wholesale Voice

We provide

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Portfolio mix evolution

Cloudservices

Managed networking

(Voice & Data)

Colocation services

Legacyvoice

(MTR/FTR c€23m revenue impact and

c€13m EBITDA impact in 2014)

Legacybandwidth

(SDH now <8% of Network Services

revenue. High margin product)

Ethernet

Legacyhosting

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Our global network and IT infrastructure

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Our strategic priorities

Businessservices

Capitalmarkets Media

Fixed line carriers

Cloudproviders

Automate our serviceand delivery model

Global cities

Focus on information intensive industries and geographies

Better leverage our existing infrastructure

Making it easier for our customers to do business with us

Operate seamlessly and transparently across

technologies and geographies

Offer the most flexibleand efficient services

Markets

Customers

Assets

Mobile network operators

Maximise utilisation of our network infrastructure

More efficient use of voice platforms for higher margin enterprise voice

Better fill rates in our existing data centre estate

Optimising IT services on fewer platforms

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10* Profit / Loss is EBITDA margin as a percentage of revenue** Cash generation / consumption is EBITDA less capex

Network Services

ITServices

Cash generation**

Cash consumption**

Profit*Loss*Data

CentreServices

Revenue: €841.5m EBITDA: €234.8m 28%Capex: €164.6m

Revenue: €120.2m EBITDA: €27.4m 23%Capex: €29.2mRevenue: €77.8m

EBITDA: -€25.8m -33%Capex: €24.9m

Voice Services

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: €1,495.5m EBITDA: €297.1m 19.9%Capex: €245.5m

Lines of business performance in 2014

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Growth initiatives

Network services

Competitors

• 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

Profitable and cash generative, but…• Flat revenue growth• Mix evolution impact on margin• Underutilisation of our assets

Incumbents: BT, DT, Orange, TEFGlobal altnets: Level 3

Financials

Regional altnets: euNetworks, InterouteLocal altnets: cable operators, Versatel

Managed networking, Ethernet, IPVPN

SDH (now <8% of total NS revenue)

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

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Growth initiatives

Voice services

Competitors

• 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

Focus on cash generation, but…• Regulatory impact on revenue and profits• Opportunity to maximise our platform

Incumbents: BT, DT, Orange, TEFGlobal altnets: Level 3

Financials

Local altnets: cable, Versatel Mobile players, voice OTT and applications: Skype, Microsoft Lync

Value proposition

IP products, IN, apps

Legacy TDM voice

• Focus on multi-country provision• Delivering consistent end-to-end customer experience across Western Europe and Asia to

enterprise and wholesale customers

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Growth initiatives

Data centre services

Competitors

• 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

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

Wholesale: Digital Realty, Coresite, Dupont FabrosRetail colocation: Telecity, Interxion, EquinixLocal operators

Financials

Value proposition

Colocation

ftec and installations

• 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

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Growth initiatives

IT services

Competitors

• Leverage strong product reputation • Narrowing focus of our platforms to match

customer propositions • Portfolio of reusable standard components

• Focus on key geographies• Rightsize and transform cost base• Key propositions only: enterprise

application hosting; mission critical webhosting and end user services

Unprofitable - in transformation• Invested in product components and

service capability underpinning our cloud-based platforms in Europe and Asia

• Cost base too high for revenue • Not leveraging our platforms sufficiently

Outsourcers: Infosys, Wipro, AccentureEnterprise hosting: Savvis, Terremark, Rackspace

Financials

Public cloud: AWS, Google, AzureRegional App hosting: Phoenix, Attenda, Pironet, Claranet

Cloud – private / hybrid / shared

Legacy hosting

Asset sales, installations and professional 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

1 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 purposeC

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Colt in Asia• KVH Asia acquisition completed and

consolidated from 22 December 2014

• Acquired for €128m cash

• Adds Asia network and data centre capability to Group: (data centres in Tokyo (x3), Osaka, Hong Kong, Singapore, and Busan)

• 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

€ millions FY 2014

Revenue (proforma)

145 8% p

Consolidated 3.9

EBITDA (proforma)

17 (12)% p

Consolidated 0.4

Capex (proforma)

23 41% p

YOY change

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Looking to the future

* Profit / Loss is EBITDA margin as a percentage of revenue** Cash generation / consumption is EBITDA less capex

Network Services

IT Services

Cash generation**

Cash consumption**

Profit*

Data Centre

Services

Voice Services

We are focused on:

• Profitable revenue growth

• Cost and capex control to deliver positive FCF

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Continued improvement in reputation with customers

• 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

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Colt Corporate Social Responsibility

Colt’s CSR programme, 2015 targets:

Environment

Customers and suppliers

People

Community

• 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

• 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

• Conduct annual survey with greater benchmark information and granularity of analisys• Maintain alignment to 18001 and continue to drive system improvements across our portfolio

• Increase annual volunteering hours to 10,000 by 2015

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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

• 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

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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

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For further information…

Colt website links:

http://colt.net/

http://www.colt.net/uk/en/investor-relations/index.htm

Investor relations:Morten SingletonVice President Investor RelationsDDI: +44 (0) 20 7863 5314Mobile: +44 (0) 20 7535 445159Colt Technology Services Group Limited, Beaufort House, 15 St Botolph Street, London, EC3A 7QN UK