Colt Group S.A. Capital Markets Day, 2nd May 2012


Colt Group S.A. (London Stock Exchange: COLT) is today hosting a Capital Markets Day in London. The executive management team will present on Colt’s strategy and addressable market opportunities, together with an insight into Colt’s business, solutions and services and the financial economics of the business, and how they will develop over time.

In his opening remarks at the Capital Markets Day, Rakesh Bhasin, Chief Executive Officer, will outline what Colt believes to be an exciting future. Colt has changed, and must continue to change in order to meet the evolving needs of customers. Colt believes it is well positioned in the market with the Information Delivery Platform providing a differentiation that comes from Colt’s ownership of a unique combination of network, IT and data centre infrastructure and expertise in delivering to customers. Colt aims to build on this position through further development of this platform.

The combination of incremental investment programmes and Colt’s confidence in the increasing traction of its service model in the market, will provide the basis for growth and improved financial performance for the group over the next five years, and beyond.

A copy of the Capital Markets Day presentation will be available for viewing online at Colt’s website: http://www.colt.net/uk/en/investor-relations/index.htm.

The Capital Markets Day presentation contains certain “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. Those forward looking statements are summarised below.

Forward Looking Statements set forth in the Presentation
Colt has a five year strategic plan with a goal to deliver profitable and sustainable growth to 2016 and beyond.

The plan includes 5 year CAGR targets for the period 2012-2016 as follows:
  • Data revenue: mid-to-high single-digit growth
  • Voice revenue: low single-digit decline
  • Managed Services: double-digit growth
  • DCS: double-digit growth
  • EBITDA*: growth largely consistent with revenue growth
  • Core Capex (excluding DCS): contracting to 14% of related revenues by 2016

*EBITDA is earnings before net finance costs, tax, depreciation, amortisation, foreign exchange and exceptional items 
 

The plan includes incremental investment programmes:
Planned data centre investment for existing sites (including the new data centre in the Netherlands) are targeted for up to €250m, for the period 2012 to 2016 of which €200m is contingent on new customer contracts. It is anticipated that additional sites may also be acquired over the period in response to identified m arket demand and subject to available funding.
€30m to €50m investment is targeted for selective expansion of the network
€70m to €120m investment is targeted on enhancements to the service portfolio

The majority of this investment program will occur over the period from 2012 to 2014.

Investments in network expansion are targeted to achieve an IRR of greater than 20%. The DCS investment programme is targeted to achieve an unlevered IRR in the mid-teens and the investments and enhancements to the service portfolio are designed to drive a combination of long term revenue growth and cost efficiency. Colt will disclose in their presentation a break out of cash flows from the wholesale data centre business (DCS). These cash flows, presented below, have been previously included in the consolidated cash flows of the Colt Group.

DCS20072008200920102011
EBITDA-0.82.40.07.5
Installation payments 4.919.2--
Capex(3.7)(31.3)(1.3)(69.6)(35.6)
 (3.7)(25.6)20.3(69.6)(28.1)


Colt wishes to caution readers that 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, (iv) unforeseen operational or technical problems and (v) the Group’s ability to raise capital.

FORWARD LOOKING STATEMENTS
This report 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, (iv) unforeseen operational or technical problems and (v) the Group’s ability to raise capital. 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.

Enquiries:
Investor Relations:
Morten Singleton
DDI: +44 (0) 20 7863 5314
Email: morten.singleton@colt.net

Press:
Helen Toft
DDI: +44 (0) 20 7039 2420
Mobile: +44 (0) 7855 301078
Email: helen.toft@colt.net

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