Teleglobe International Holdings Ltd
Teleglobe International — Investor Presentation (April 2005)
25 slides from Teleglobe International's investor presentation, Apr 8, 2005
Slide 1: Investor Presentation
Exhibit 99.1 Investor April 8, 2005 Presentation
Slide 2: Safe Harbor and Use of Non-GAAP Info
Safe These set goals Company’s change. otherwise. descriptions SEC Use provided exclusion both cash management in 1 isolation forth of Harbor charges management filings. are forward-looking Non-GAAP The in, as also can These or SEC or additional and -Company associated uses The forward-looking enhan
Slide 3: Teleglobe's Investment Highlights
Teleglobe’s 50-Year Voice Sustainable International Superior Differentiate Cost Strategy Scale Raise Free Experienced Focused Cash Advantages Volumes Operating Transport International in on Competitive Flow Place BOTH Investment Industry Management on VoIP Carrier’s inVersus Fundamentals Quality Lev
Slide 4: Company Overview
Company “A 3 LeaderOverview in International Connectivity Services and Enabling Applications for Retail Voice, Internet and Mobile Service Providers”
Slide 5: Unique Scale and Positioning
Unique Retail 1,400 RBOCs, #1 Value-Added 4 in international Carriers/Operators Customers International PTTs,Low-Cost ISPs, wholesale Wholesale Mobile Scale Worldwide Service voice Bilateral/Peering Positioning transport Providers TopProducts 7 in IP transit Platform #1 in international mobile roami
Slide 6: Global Reach and Network Ownership
Global Reach interconnects Centralized, O 5 wn 66% to Network 240+ ofglobal network 500+ countries with network SS7/C7 Voice, while andsignaling 34% monitoring VoIP, territories isData, leased interconnects Ownership … IP$2.0 Tier and Signaling billion 1 quality in 80+ invested: Capabilities cable s
Slide 7: Comprehensive Connectivity and Diverse Service Suite
Comprehensive Connectivity Voice Intelligent Value-Added Virtual Broadcast GlobaInternet Short Indefeasible-Rights-of-Use Long Global Collect International 4Q04 81% Gross 6% 6 to10% Term Revenue –Margin 9% Roaming Transit Services Transport 9% 30% Enabling Leases Toll Private and Services %Service t
Slide 8: Industry Overview
Industry Overview “Teleglobe 7 Participates in Markets With Sustainably High Volume Growth Rates”
Slide 9: Key Trends Driving Sustainable Volume Growth
Unique Retail 1,400 RBOCs, And Key Sustainable Voice Internet Major Large Removal Growth 8 Trends Wholesale Carriers/Operators Over PTTs Customers CarriersConsolidating International Opportunities Traffic PTTs, of Broadband Volume Focused Excess ISPs, Wireless Competitors Capacity Growth on Wholesal
Slide 10: VoIP Adoption and Growth Trends
Industry Enterprise) $ 10 2004 Cost Retail Adoption Wholesale Capex Simplification W 9 120 80 60 40 Billions In 2003 (Million) holesale 20 000 68 46 28 113 Effectiveness 2005 to 2004 022 of VoIP Enterprise Consumer and 535 2008 minutes Trends: 000 of 000 Int’l int’l Opex 2006 2005 25 -Growth Broadba
Slide 11: Broadband Lines Growth and Drivers
IP4lines Broadband of 200 250 100 Millions Q 0 50 62% EMEA Americas 28% Asia-Pacific 43% 71% (12/31/04 Drivers Additional Multi-Media Peer Local Business 10 Global Q2 Total to Growth 29% Outside Language Q4 28% Peer 150 for Process Broadband 29% Share Q2 Drivers Additional Lines Cable 43% content in
Slide 12: IP Transit Market Price and Volume Growth
IPiami 2004 Source 0% Annual New Barcelona •M Hong Tokyo Revenues Equilibrium Challenging 11 Transit (50)% 250% York IP Kong =Volume Transit Telegeography Price Growing Declining 500% Los (100)% Line Market Angeles Price Erosion Growth = No Yielding Erosion Revenue –Rate ‘03 Overall versus to ‘04 Gr
Slide 13: Mobile: A Tremendous Market Opportunity
Mobile Tremendous Market Voice 2003 360 358 1.8 0.5% 0.0 14% Retail Carriers Enabling Content 11% 18% * 12Industry 3517 0.0 520 Annual 25% 2008 1.8 of Data *8.4 Estimates Services Retail */50 60 6** Operators of Providers Sources 2003 45 184 133 Application Growth High-Margin Retail 3.0% 2008 (US **
Slide 14: Mobile Roaming and MMS Managed Services
Mobile MMS Managed Enable Leverages Teleglobe Low 13 Investment Connectivity Increased Reduced Customer Global Roaming Economics Existing Roaming Client &Client Needs Limited Roaming IP and/ Costs Signaling International Revenue For Short Incremental Enabling Brokerage and Messaging Manage Network G
Slide 15: Competitive Landscape and Teleglobe's Superior Positioning
Competitive Landscape and Teleglobe’s Superior Positioning 14
Slide 16: Competitive Landscape
Competitive Enabling # Telecom Level Tier IP Applications Syniverse,Verisign, Providers 151Networks, Tier 1 3, 2/3 IP1… Savvis Italia, Networks Voice Leader Overview /Cogent, Software BT, DataFew FT, Infomatch Over Applications GX, Belgacom 90% Abovenet of GSM Teleglobe International Int’l Content C
Slide 17: Teleglobe's Solid Leadership Position
Teleglobe’s Solid, X% Less Scale # Technology Enabling Recent Centralized 161 inof Than Leadership International Stable Revenue Restructuring Applications 2% Superior to Leadership Customer one ofwith Revenue NOC, VoIP Positioning Customers Now Leader Base and Customer From Continuous Total / Innova
Slide 18: Teleglobe's Advantage: Unattractive to Replicate
Teleglobe’s Advantage 272 Unattractive Tier “Shared” Free Requires Proprietary Dynamically Patents The Centralized A Substantial 17single Voice only 1traffic Internet / operating early substantial scaled, network Bi-Laterals Barriers investments exchanges Voice Significant Operating ROI adjust mover
Slide 19: Teleglobe's VoIP Advantages versus Competitors
Teleglobe’s VoIP Teleglobe 80% Speed Flexibility. Quality 18 Lower versus of–Provisioning. Bilaterals versus .VoIP Capital TDM . More Competitors Network Routes Investment + Tier . . Hours Advantages 1&Global Vendor versus IPOptions Network Months Multiple Services Levels Adaptive “Best Value” Routi
Slide 20: Teleglobe's Voice Margin Recovery
Teleglobe’s Voice ($ 1Q 0.04 0.06 10% 0.08 11% 0.10 Leading Added Blend IP (indexed 50 100 150 44% Revenue * Margin Tier Rigorous Match Leverage Challenging 19January per –46% 03 Revenue I0Peering –minute) of 2Q Revenue 1Q Regional Drivers Revenue Routing Access Bi-laterals Termination average Capac
Slide 21: Teleglobe's Strategy
TELEGLOBE Teleglobe’s Strategy a 20
Slide 22: 2005 Plan: Drive Growth and Efficiency
2005 Complete Network Drive -Data: Expanded, Automate 25 Relentless Buying Leverage 21 SCCP, Plan + Effective Execution New Growth toEfficiency Managed Close Unification Synergies, VoIP Productivity Focus Integrated IP PoP’s with Dedicated 2-3 /Strategy TDM on Roaming, –Additional New in Productivit
Slide 23: Financials
Financials TELEGLOBE
Slide 24: Q4 2004 Results versus Q3 2004
3Q04 ($ Q4:04 Voice Telecommunications Network Gross SG&A, Amort., Net Adjusted EBITDA 23 millions) loss Actual revenue margin Q3:04 restruc, Depr., (9.2) & 7.7 EBITDA Telecom versus 5.0 44.5 rate (11.0) 228.1 Interest bad Memo—Integration 15.9% 45.1 2Q04 debt, 226.0 Expenses revenue and16.3% fx Pro
Slide 25: Balance Sheet: Q4 versus Q3
Balance Q4 Cash, assets Accounts Liabilities 24 Q3cash 153 $MM Sheet Payable and 154 equivs, $MM Q4 Shareholders’ Totalvs. and and assets Q3 Acc’d marketable 557 Equity Liabilities 550secs 55734 276 550 32262 Accounts Other Current receivable Liabilities 211 2085Prepaid 5 Total Current assets 4 Liab
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