RETELIT RETI TELEMATICHE ITALIANE - Retelit Spa

RETELIT
RETI TELEMATICHE ITALIANE
March 8th, 2013
BUSINESS PLAN
2013 - 2017

RETELIT GROUP
• Retelit is one of the leading Italian providers of data services
and infrastructure for the telecommunications market, listed on
the Milan Stock Exchange
• e-via, fully controlled by Retelit, is the operating subsidiary
Stock performance since January 1st, 2012
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NETWORK AND DATA CENTERS
7.500+ km Fiber Network
8 Metropolitan Networks
18 Data Centers
• Modern, flexible, scalable,
technologically advanced
• Built along the main state, provincial
and municipal highways
• Reaching the largest Italian cities
• Covering all main business areas
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RETELIT SHAREHOLDERS
Retelit’s main shareholder is the Libyan Post, Telecommunication and
IT company (LPTIC)
In September 2012 LPTIC drew up an agreement with other 11
shareholders (ex-minorities); in October they appointed a new Board
of Directors to re-launch Retelit
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THE NEW BOARD OF DIRECTORS
The Board is composed by nine Directors: the majority of them has
international skills and experience in TLC and fiber optical sectors
Gabriele Pinosa
Board Chairman
Remuneration Committee Chairman
GO-SPA Consulting Founder&Chairman
Abdelmola Elghali
Remuneration Commitee member
LPTIC Cfo
Mauro Tosi
Executive Commitee Chairman
ERC Highlight Ceo
Idealabs Founder&Ceo
Anna-Lena Philipson
Control and Risk Committee member
Risk and Head of Commercial Development TeliaSonera
Stefano Borghi
Control and Risk Committe member
SITE Chairman
Majdi Ashibani
Board Vice-chairman
Executive Committee member
LPTIC Chairman
Johan Anders Leideman
Executive Commitee member
Multicom Security Group Chairman and Ceo
Alberto Della Porta
Remuneration Committe member
Stena Italia Cfo
Paola Pillon
Control and Risk Committee Chairwoman
Telecommunication Engineer
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CORPORATE GOVERNANCE GUIDELINES
The Libyan company involvement is crucial, as it has industrial and strategic
interests in this partecipation. Retelit will become a TLC bridge between Italy
and Libya and it will be able to canalize the growing TLC traffic between
Europe and Africa. In addition LPTIC has relevant financial resources to
invest in the broadband infrastructures
Thanks to the BoD’s high skills, Retelit was able to define a new business
plan self-made. The business plan remains down on earth but in the
meantime it is challenging
The BoD appointed a new General Manager, Mr. Enrico Mondo, from inside,
giving a signal of enhancement of the company valuable HR
The BoD accepted an hard and fast remuneration policy: fixed remuneration
at minimun level (20.000€/year Chairman - 10.000€/year each Director) and
variable remuneration linked to the real economic results (EBIT) of the
company 6

MISSION AND VISION
RETELIT MISSION
Helping its Customers to
increase competitiveness by
means of excellent ultra
broadband connectivity and
value added services
Retelit Vision
Leader in fiber based ultra broadband and value added services
Quality
Performance
Simplicity
Security
Cost
Effectiveness
Scalability
Retelit can offer top quality internet services and
connectivity through its state of the art
technology and network infrastructure
Retelit’s proven experience in engineering,
provisioning and H24 assurance guarantees the
best performance in the ultra broadband market
Retelit’s offer is clean and simple, as a result of its
specific focus on the market
Retelit guarantees security with either centralised
or dedicated firewalls managed by its experts
Retelit can provide quality service at the best
price.
Bandwidth scalability and flexibility will always
match customer requirements
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CORPORATE AND PUBLIC SECTOR MARKET GROWTH ELEMENTS
100GMbit
Bandwidth
10 Gbit
1 Gbit
100 Mbit
10 Mbit
1 Mbit
The demand of fiber based ultra broadband services
by corporate Customers and Public Sector is going to increase
VPN
IP-PBX
Datacenter
outsourcing
Tele
conference
Content Delivery
Network
Cloud
computing
Tele
Presence
Smart city
Extended
LAN
Augmented
reality
Business
continuity
Virtualization
Small Cell
HD video
surveillance
2010 2012
2014
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PUBLIC SECTOR MARKET TREND - ITALIAN DIGITAL AGENDA
• On the 1 st of March 2012, the Italian Government set up
a high-level steering committee for the implementation of
the Italian Digital Agenda (ADI).
• Digital economy has been declared as a strategic asset
for economical and social development of the Country.
Action areas where European Members, including Italy, should operate are the following:
Digital
Identity
Digital
PA
Open
Data
Most relevant projects include:
• National Broadband Plan
• Ultra Broadband Strategic Projects
• Cloud Data Center Projects
• Smart City Projects
Digital
Education
Smart
Governance
Digital
E-Health
Smart
Economy
Smart
People
Digital
Divide
Electronic
Payments
Smart
Mobility
Smart Living
Digital
Justice
Smart
Environment
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Exabytes per Month
MOBILE DATA TRAFFIC GROWTH MEANS FIBER BACKHAULING
12
10
8
6
4
2
0
66% CAGR 2012-2017
2012 2013 2014 2015 2016 2017
Source: Cisco VNI Global Mobile Data Traffic Forecast 2012-2017
• Continued strong growth in the
number of mobile Internet
connections
• Average global mobile network
speeds expected to increase
seven-fold from 2012 (0.5 Mbps)
to 2017 (3.9 Mbps).
• By 2017, mobile video is
expected to represent 66
percent of global mobile data
traffic (up from 51 percent in
2012).
• Italian mobile operators, as well
as other European players, are
forced to upgrade their
backhauling network
• Only fiber based solutions can
guarantee the required capacity
and scalability
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RETELIT ACTIVE SERVICES BANDWIDTH TREND
2005
2006
2007
2008
2009
2010
2011
2012
Totale
E-Link
C-Link
IP-Link
IP-Link C-Link E-Link Totale
3% 4% 5% 5% 6% 6%
35%
61%
2007
40%
56%
2008
54%
41%
2009
58%
37%
2010
62%
32%
2011
11
58%
36%
2012
• IP-Link: Internet Access
• C-Link: SDH Connectivity
• E-Link: Ethernet Connectivity

CURRENT POSITIONING
Retelit is today positioned as an Infrastructure Service Provider
focused on data transmission and housing wholesale services and
infrastructures offered to international and domestic Telcos, ISP and
ICT service providers.
Revenue and customers mix is strongly Telco oriented
The increased number of Data Center service contracts
achieved during the past two years in the ICT market positions
Retelit also as a Cloud Enabler: up-selling to existing
customers has now stronger growth prospective
Aggregated IP bandwidth delivered today (IP transit service –
Internet bandwidth 100% guaranteed) positions Retelit as a high
quality Internet Service Provider in the Italian market.
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CURRENT MARKET
Carriers (National and
International)
• Fixed and/or Mobile
• Multiutilities
International Defense and
Aerospace
• DoD – DISA/DITCO
• NATO
• Aerospace
TLC Service Providers
• ISPs
• Resellers
ICT Service Providers
• System Integrators
• Software Houses
• IT Vendors
• VARs
• Engineering Companies
Broadcasters
• TV / Satellite
• Teleports
• Content Providers
• Over the Top
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BUSINESS PLAN STRATEGIC GUIDELINES
• Grow without changing Company’s DNA
• Strengthen positioning in Telcos wholesale market
• Consolidate positioning in ICT and new media market
• Address selected corporations and public administrations
• Focus on high quality broadband services, developing Internet value added
services and Virtual Private Networks
• Improve Premium Data Center services portfolio
• Extend network reach leveraging fiber backhauling projects for mobile
operators
• Consider telecom infrastructure acquisitions to increase network coverage
• Expand backbone cross-border and open new European Points of Presence
• Develop International projects, some in partnership with LPTIC
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PLANNED MARKET EXTENSION
Wholesale
• Increase points of interconnection to
address new international operators
• Enhance IP peering
• Landing stations gateway for Middle and
Far East
Corporate and Selected Enterprises
• 50-250 Employees
• Near our fiber route
• Addressing high end Broadband and
Disaster Recovery needs
Public Sector
• Central and Local
• Education
• Health
• Defense
• University and Research Institutes
Milano
Marseille
London
Frankfurt
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Chania

CURRENT SERVICES
Broadband Telecommunications Services
Internet Transit and Access (from 2 Mbps to 10 Gbps)
Ethernet Connectivity (from 2 Mbps to 100 Gbps)
SDH Circuits (from 2 Mbps to 40 Gbps)
Carrier Network to Network Interface: Ethernet
CPE Supply and Maintenance
Data Center Services
Co-Location and Housing services
Managed Services and Support:
Proximity Services H24 (Remote Hands and Eyes)
System and energy monitoring
Infrastructures:
Dark Fiber (G652/G655)
Ducts (PN6/PN10)
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NEW SERVICES
Broadband Telecommunication Services
• Virtual Private Networks MPLS: managed and unmanaged
• Carrier Network to Network Interface: MPLS
• Burstable IP Access and other VAS IP services
• Access Type: xDSL (

KEY HISTORICAL FINANCIAL
33,4
35,2
37,0
• Constant growth of Telecom services
• EBITDA approx 10 M€
• NFP positive, strongly increased in the last two years
35,0%
30,0%
25,0%
20,0%
15,0%
10,0%
5,0%
0,0%
9,4
27,8%
EBITDA M€
10,7
30,4%
9,7
26,2%
2010 2011 2012
EBITDA EBITDA margin
12
10
8
6
4
2
0
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BUSINESS PLAN 2013-2017
2012 2013 2017
(million euro) Actual (*) Targets Plan
Revenues 37,0 38,4 73,9
Operating income before intrest tax
depreciation and amortisation (EBITDA)
(*) pre-final data approved by BoD
9,7 10,7 26,0
EBITDA margin increased 9% from 2012 to 2017
CAGR
• Revenues 17,7%
• EBITDA 24,9%
• Planned overall five years CAPEX
of 75,0 M€ of which 49,2 M€ for
building connections
• Net profit in 2014
• Net financial position at the end of
2017 of 49,4 M€
• Expected cash generation of 42
M€ of which 29,1 M€ from the sale
of the WiMAX branch
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OPPORTUNITIES NOT YET INCLUDED IN THE BUSINESS PLAN
• Several potential acquisitions are currently under investigation,
however they require extra time for further analysis and due
diligence
• Cloud Services may be included in our portfolio after an accurate
selection of possible partners
• An additional important international project will be analyzed in
depth by the end of March
Each one of these opportunities can have a great impact on our
business plan and result in very considerable growth prospects
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WARRANT RETELIT 2008-2013 OPPORTUNITY
• The final deadline to exercise “Retelit 2008 -
2013” warrant is set at 31 st March 2013
• To date, there are 37,101,871 warrants valid for
the subscription of an equal number of newlyissued
shares at the exercise price of € 0.50
• The entire subscription would allow the company
to have 18.5 M€ to accelerate the development
plans
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THANK YOU
Retelit S.p.A.
Viale F. Restelli, 3/7
20124 Milano MI
T. (+39)02.20.20.45-1
F. (+39)02.20.20.45-359
www.retelit.it
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DISCLAIMER
THIS DOCUMENT HAS BEEN PREPARED BY RETELIT S.P.A. (THE “COMPANY”) FOR THE SOLE PURPOSE DESCRIBED HEREIN. IN
NO CASE MAY IT BE INTERPRETED AS AN OFFER OR INVITATION TO SELL OR PURCHASE ANY SECURITY ISSUED BY THE
COMPANY OR ITS SUBSIDIARIES.
THE CONTENT OF THIS DOCUMENT HAS A MERELY INFORMATIVE AND PROVISIONAL NATURE AND THE STATEMENTS
CONTAINED HEREIN HAVE NOT BEEN INDEPENDENTLY VERIFIED. NEITHER THE COMPANY NOR ANY OF ITS REPRESENTATIVES
SHALL ACCEPT ANY LIABILITY WHATSOEVER (WHETHER IN NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY FROM THE
USE OF THIS DOCUMENT OR ITS CONTENTS OR OTHERWISE ARISING IN CONNECTION WITH THIS DOCUMENT OR ANY
MATERIAL DISCUSSED DURING THE PRESENTATION.
THIS DOCUMENT MAY NOT BE REPRODUCED OR REDISTRIBUTED, IN WHOLE OR IN PART, TO ANY OTHER PERSON. THE
INFORMATION CONTAINED HEREIN MAY INCLUDE FORWARD-LOOKING STATEMENTS THAT ARE NOT HISTORICAL FACTS,
INCLUDING STATEMENTS ABOUT THE COMPANY’S BELIEFS AND EXPECTATIONS. THESE STATEMENTS ARE BASED ON
CURRENT PLANS, ESTIMATES, PROJECTIONS AND PROJECTS, AND CANNOT BE INTERPRETED AS A PROMISE OR GUARANTEE
OF WHATSOEVER NATURE.
HOWEVER, FORWARD-LOOKING STATEMENTS INVOLVE INHERENT RISKS AND UNCERTAINTIES AND ARE CURRENT ONLY AT
THE DATE THEY ARE MADE. WE CAUTION YOU THAT A NUMBER OF FACTORS COULD CAUSE THE COMPANY’S ACTUAL
RESULTS AND PROVISIONS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN ANY FORWARD-LOOKING STATEMENT. SUCH
FACTORS INCLUDE, BUT ARE NOT LIMITED TO: TRENDS IN COMPANY’S BUSINESS, CHANGES IN THE REGULATORY
ENVIRONMENT, ITS ABILITY TO SUCCESSFULLY DIVERSIFY AND THE EXPECTED LEVEL OF FUTURE CAPITAL EXPENDITURES.
THEREFORE, YOU SHOULD NOT PLACE UNDUE RELIANCE ON SUCH FORWARD-LOOKING STATEMENTS. RETELIT DOES NOT
UNDERTAKE ANY OBLIGATION TO UPDATE FORWARD-LOOKING STATEMENTS TO REFLECT ANY CHANGES IN RETELIT’S
EXPECTATIONS WITH REGARD THERETO OR ANY CHANGES IN EVENTS.
EXECUTIVE IN CHARGE OF THE PREPARATION OF ACCOUNTING DOCUMENTS “IVANO BARZAGO” DECLARES, PURSUANT TO
PARAGRAPH 2 OF ARTICLE 154-BIS OF THE CONSOLIDATED LAW ON FINANCE, THAT THE ACCOUNTING INFORMATION
CONTAINED IN THIS PRESENTATION, FOR WHAT CONCERNS THE ACTUAL FIGURES, CORRESPONDS TO THE DOCUMENT
RESULTS, BOOKS AND ACCOUNTING RECORDS.
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