1

Interoute -Next-Generation Network

Tsvetan Borissov

28/04/2011

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Who are we?

• Operates in 29 European countries

• Serves more than 3000 European and USA customers

• Owns and operates one of the largest and most advanced voice and data networks in Europe

• EBITDA positive 2009 & cash flow positive 2010

• Key supplier of services to all European PTT’s

Sandoz Family Foundation

18 4685

140188

246 270301

2003 2004 2005 2006 2007 2008 2009 2010F

Accounting Revenue Growth(€ in millions)

’03-’10 CAGR: 51%

3 • Only 17% of Interoute’s 48 fibre pairs are currently being used, allowing for rapid, cost-effective deployment of new bandwidth• Future proof network: new fibres can be deployed in spare duct as new fibre technologies emerge• Total build cost: €2.7 billion

Interoute’s competitive advantages begin with network ownership

4

Company highlights

• Fully-Owned Pan-European Network Asset

• Centrally managed, locally operated, offering service/support in 15 European languages

• Strong EBITDA growth (67% year-on-year, to €40m 2009); EBITDA+ since Q3 2007

• Operational Cashflow Positive, self-funded business

• Continued growth through recession

• Exceptional Operational Gearing and high Gross Margins (70%+)

• Established presence in two markets: wholesale and corporate

• Bridge between East and West, North and South

• Scalable Next Generation Network

• Future-proofed: Europe’s largest fibre and duct reserve, and extensive Data Centre capacity

• Leader in deployment of advanced network technology, including IPv6

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18 4685

140188

246 270301

2003 2004 2005 2006 2007 2008 2009 2010F

’03-’10 CAGR: 51%

3.4

24.7

39.8

54.0

H2 2007 2008 2009 2010F

Interoute at a glance

EBITDA(€ in millions)

Accounting Revenue Growth(€ in millions)

Revenue Sector Split 2009 Headcount

Total: 929

49%51%

Wholesale

Corporate

2004 2009

Total: 920

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Our customers

Retailers

Financial Services

Service Industry

Government & Government Channels

Network Operators

Industrials

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Value - From the Ground to the Cloud

• We offer a broad portfolio, ranging from physical network based products (the Ground) to virtual network-based services (the Cloud).

• Our virtual network-based services perform better because we own and manage the underlying physical network.

• Customers can choose how much of their ICT infrastructure they want to build and manage for themselves, and how much they want us to manage for them.

• And because customers can change the ratio of what they manage vs what Interoute manages as their business needs change, they’ll always be able to get the ideal balance of cost vs efficiency vs performance that’s right for their business.

Interoute Product Family Tree

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55,000 km lit fibre

28 countries connected

99 cities connected

21 city networks

59 data centres

8 landing stations

Interoute serves as the European Union’s duct and fibre network

Invitel International Network

Interoute network

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Including 8 core networked data centres with managed services

• All networked and integrated on backbone to support geographic fallback via virtual server and the full product range

• Provides a pan-European platform for the delivery of network-centric ICT services

• ISO 27001 equivalent certified: Amsterdam, Berlin, Geneva and Munich

• Well suited to serve the growing demands of virtualization

• 24/7 hands-and-eyes service offered at the nine facilities illustrated on this page

• Prague Data Centre in blue is an internal DC for the Interoute NOC

Amsterdam

Geneva

London

BerlinBerlin

Madrid

Munich

Paris

Stockholm Prague

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Plus 50 additional fibre-connected data centres

• 59 Datacentres

• 3 Tier 4

• 6 Tier 3

• 50 Tier 1

• 32 of the Tier 1 centres can be upgraded to Tier 2 with the addition of a UPS

• Current plans to build virtual service centres in Rotterdam, Dusseldorf and Brussels

• Fully redundant service centres using virtualisation to minimise building upgrade cost

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Source: Uptime Institute

Bucharest

Tier 4 (3)

Tier 3 (6)

Tier 1 (50)

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What Interoute brings

• Imagine the potential

• Your passport to flexibility

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What Interoute brings: Imagine the potential

Your need for flexibility• Easy changes when you need them – not when contract allows

• Single platform – Interoute does not have the ‘silo based’ product mentality that other large carriers do and we work for the customer, not against them

• Network outsourcing services

• Add new services in software – temporary, permanent, short-term, long-term

• Move applications into the cloud at your own pace

• An end to forklift upgrades – less disruption and a more transparent service cost

Unique• Advanced NGN connectivity services

• Delivering all services over a single network platform

• Making VPLS available in over 25 countries

• Bringing commercial innovation to make it contractually painless to change services

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Interoute: Your passport to flexibility

Future-proofed• Whatever service you buy today, make

sure that your network can provide the services that you need for the coming years

• Services delivered as software, making provisioning quick and simple

The Interoute Response• Common contract & SLA structure

• Services with the same cost base, same price (no technology premium)

• Change logical services without changing your contract term

• Software services can be purchased for as little as 1 month

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Advanced NGN connectivity and voice portfolio

Ethernet: Covering both managed and unmanaged services on our SDH and MPLS platforms, Interoute’s dual approach to ethernet provides maximum bandwidth and architecture options to our customers.

SDH: Private line options from E1 to STM-64 across Interoute’s entire network footprint. Giving maximum availability and coverage from a single supplier.

Wavelength: Our Wavelength network connects over 200 datacentres and IX’s in 72 cities across 19 countries with a 10 day delivery option. Allowing you to get the capacity you want, where and when you need it.

Dark Fibre: Backed by fully owned colocation centres, Europe’s most future-proof, homogenous fibre network provides the efficient, long term flexibility and assurances you need to build your next generation networks.

Duct: >18,000Km of Duct network owned and operated by Interoute’s extensive O&M program.

IP Services: Interoute offers two IP Transit services: Global Transit advertising routes to all Internet destinations, and Euro Transit advertising a partial routing table of Interoute's direct customers and peers. The choice gives you better control over your IP cost base.

Channel VPN: The Interoute Channel IP Virtual Private Network (IPVPN) service provides Partners with an efficient, scalable, and flexible way of connecting sites in multiple locations and countries in order to provide their end customers a single wide area network capability.

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Current 4 roadmap areas

TransmissionTransmissionUNIFIED Connectivity (UConn)

UNIFIED Connectivity (UConn)

• Colocation• Virtual and Dedicated

Servers• Storage & Backup• Disaster Recovery &

Global Load Balancing• Application Management

& Professional Services• Network Security & Local

Traffic Management

• Interoute ONE• Conferencing• VVN

• Internet Access• Fast Trade• Point to Point

Ethernet• Ethernet VPN (VPLS)• IPVPN (MPLS)

UNIFIED Computing (UComp)

UNIFIED Computing (UComp)

UNIFIED Communications (UComm)

UNIFIED Communications (UComm)

• Packet based network transport

• Wavelength, SDH• Network

Outsourcing• Wholesale

bandwidth• Infrastructure

Roadmap LIVE is divided into 4 distinct platforms. Each platform takes responsibility for particular product areas as shown below.

Unified Transport Network

IP / MPLS

UCUC

UTUT Site A

Site B

UC

UT

Site D

VLAN2 VLAN2

LSPVLAN2

VLAN1

VLAN2 Svc 1

Svc 2

Site C

LSPVLAN3

VLAN3

Svc 3

EVC4Svc4

EVC1VLAN1

EVC2VLAN2

EVC3VLAN3

EVC4Svc 4

EVC1VLAN1

EVC4Svc4

EVC2VLAN2

EVC1VLAN1

UT Switch

PER PER

UT Switch

Site X

Site Y

Unified Transport Network: UT Packet Solution

Svc 1

Svc 2

Service 1 is Point-2-Point Ethernet

Svc 3

Svc 4 Service 4 is Fast Trade

Service 2 is Layer 2 (VPWS) VPNService 3 is Internet Access

Svc 1 Svc 2 Svc 3

VLAN1VLAN2VLAN3 Svc 4

EVCxVLANxSvc x

Svc 4

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What Interoute can do

Local DSLProvider

The IP Network

Customer Firewall

TDM PBX

Voicegateway

EthernetBackup

Internet Central

Media Livestream

Regional Main Office

E1 PrimaryDSL Backup

EthernetPrimary

IP/SoftPhone

Customer HQ

Internet

PSTN

Interoute OneSoftswitch

Remote Site/Remote Client

Branch Office(s)

DSL Primary3G Backup

IP PBX

DDoS Protection &Network Security

Data Centre

Internet Local Breakout

Virtual Hosting

Colocation

ComplexDedicated

Hosting

Partner MPLS NetworkOff-net

Office(s)

Point to PointEthernet

Customer Server

MicrosoftOCS

MobileNetworkOperator

Customer Web Portal

Billing InformationInvoice history

SLA ReportingAll network related SLA parameters (RTD, Packet Delivery, Site Availability

Performance MonitoringUtilisationReal Time (to 5 minutes)

Service Management

Order Progress

Trouble Ticket information

View statusRaise a ticket

Gives in depth information to IT managers about their network and service performance

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How we serve Customers: three case studies

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Salgótarján

Hódmezõvásárhely

Mezôkövesd

Szigetvár

Kiskõrös

Baja

Kiskunhalas

Bácsalmás

Murakeresztúr

Rétszilas

Nyékládháza

Siklós

Tiszaújváros

Pincehely

Körmend

Bátaszék

Gödöllő

Hatvan

Eger

Kazincbarcika MiskolcSzerencs

Nyíregyháza

Záhony

Mátészalka

Debrecen

Püspökladány

Kisújszállás

SzolnokKarcag

Füzesabaony

Sárbogárd

Dombóvár

Szekszárd

Pécs

Kaposvár

Csurgó

Nagykanizsa

Szombathely

Bánhida

Komárom

Mosonmagyoróvár

Győr

Békéscsaba

Orosháza

Szeged

Kiskunfélegyháza

Kecskemét

Cegléd

Mezőtúr

Sopron

Biharkeresztes

Hidasnémedi

Szentgotthárd

Magyarbóly

Villány

SLO

CROYU

RO

UA

SK

A

Letenye

Gyékényes

PorpácSárvár

Felsőzsolca

Apafa

Szajol

Zalaszentiván

Oradea

Bajánsenye

HodosŐriszentpéter

Nagylak

Röszke

Budapest

Dunaújváros

Zalaegerszeg

Balatonszentgyörgy

Monor

Siófok

Barcs

Fonyód

Székesfehérvár

Várpalota

Veszprém

Kisigmánd

Kimle

Timisoara

Szentes

Dunaföldvár

Sárkeresztúr

Kapuvár

Zirc

Vienna

Hegyeshalom

Arad

Csorna

Bratislava

Tatabánya

Rajka

An operator lands in Europe and declares its independence from incumbent competitors, made possible by Interoute’s lit-fibre solution

Initial build: Interoute acquired and integrated: Fibre, Colocation & EquipmentOngoing Support: • Interoute provide FLM, 2nd and 3rd Line support; Customer NOC covers 1st line support;• Both NOCs monitor the network;• Interoute provide a spares warehousing and management service;• New services are provisioned using Customer’s 1st line and Interoute FLM.

Customer need: Customer had a strong domestic skill set but did not want to deploy in-house staff across a large European footprint.

Interoute solution: The route consisted of four sections:• Timisoara – Vienna (x2); Vienna - Frankfurt (x2)Network deployment of 3700Km 70% of the fibre route was off-net.Project Timescales:

Negotiation & Design 2 MonthsDelivery & Integration 3 Months

Customer accelerated their time to market by 12 months and met their own high-capacity demands.

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A non-telecoms operator sought a pan-European solution for the construction and deployment of a secure network, which Interoute built and now helps to manage

Customer need: Customer had a strong skill base at a different technology layer and needed Interoute to provide a layer 1 skill set, and to guarantee security.

Interoute solution:A 9,000 km, Pan-European fibre network was provisioned – including acquisition of equipment sourced. The subsequent network is managed by Interoute.How was it built?About 75% of the network was on Interoute’s backbone;Interoute dug another 2% of the required route;Interoute acquired 3rd party fibre for the remaining 23%.The project, from start to finish, was 6 months.

Initial customer equipment was integrated into a service package providing integrated Fibre, Colocation and equipment support.Ongoing Support:• New Equipment acquisition and provisioning;• DCN network Hands and Eyes;• Ongoing Spares management ;• Equipment Hands and Eyes Service; Customer retains NOC control of the network.

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A European operator gets a major upgrade of capacity – fast and without additional headcount solution – with Interoute’s Optical Private Network (OPN)

• Customer need: An operator was facing rapidly expanding DSL penetration, and thus surging backhaul capacity demand. But they did not want to deploy in-house staff across a large European footprint. And they needed a solution fast.

• Customer required a solution that would quadruple their pan-European capacity while providing network resiliency.

• Interoute’s solution: a diverse 800Gb Optical Private Network covering Bari, London and Frankfurt. With option for intermediate drops at 8 other cities.

• The solution went from initial enquiry, through design, price negotiations, contracting, delivery and commissioning and handover within 5 months.

MilanMil-Bri

RomeRom-Cor

VeniceVce-Val

Par-Gar

Genoa Goa-Pil

MarseilleMrs-Boi

LyonLyn-Jea

Willerval

NiceNce-Tra

ZurichZrh-Jos

BolognaBlq-Mas

PisaPsa-Bar

BariBri-Cdl

PescaraPsr-Fam

Gne-Mae

Lon-001

Milan ViaCalderaMil-Cal

Str-Ind

St

Max

imin

Fina

le Ligure

Sa

n Re

moF

reju

s

Civitavecchia

Orbetello

CampigliaMarittima

ForliFrl-Bec

PesaroPeo-Rom

ChiaravalleAoi-Chi

FermoFem-Mez

AlbaAad-Adr

Ferrara

Mozzanica

Rezzato

Ve

rona

Carm

ignan

o di B

renta

Due

Carre

ra

Andancette

Meysse

Caderousse

Senas

Balingen

Singen

Bruchsal

Lorsch

Etricourt

Po

stlin

g

Vauchelles

Nogent sur Oise

Cqf-Gre

Mer

ew

orth

Socx, Bergues

Wro

tha

m

Bue-Rud

Po

stlin

g

Plaidt

Katzenelnbogen

Bu

o-001 Fad-001

Lug-001

TermoliTrl-Pol

FoggiaFog-Bmp

AndriaAra-Bcp

NaplesNap-001

NolaNol-001

GrottaminardaGta-001

CanosaCsa-001

Sxd

-00

1

Fra-007Fra-Sch

OTE 800G protected

S

S

S

S

S

S

S

SS

S

S

SRotterdamRtm-Vla

Dusseldorf Dus-Ell

Anr-Jan

CologneCgn-Max

Ams-Koo

Rees

Utc-Ste

Ess-Roc

S

SFlorenceFlr-Gio

Dee-Arg

DCN

DCN

DCN

Lon-001-Par-Gar/1

Lyn-Jea-Par-Gar/1

Lyn-Jea-Mrs-Boi/9

Goa-Pil-Mrs-Boi/1

Goa-Pil-Psa-Bar/3

Psa-Bar-Rom-Cor/3

Nap-001-Rom-Cor/2

Bri-Cdl-Nap-001/2

Bri-Cdl-Psr-Fam/2

Blq-Mas-Psr-Fam/2

Blq-Mas-Vce-Val/2Mil-Bri-Vce-Val/4

Mil-Bri-Mil-Cal/4

Mil-Bri-Zrh-Jos/2 (existing)

Str-Ind-Zrh-Jos/4

Fra-007-Str-Ind/1

Dus-Ell-Fra-007/1

Ams-Koo-Dus-Ell/4

Ams-Koo-Lon-001/1

Mtx-001

Sou-001

Brr-001

Nevers

Bourbon

Charolles

Belleville

CandelaCan-001

NDTR3994, NDIN3983 NDTR3993, NDIN3982 NDTR3992, NDIN3980, NDIN3981NDTR3991, NDIN3979NDTR3984, NDIN3974NDTR3985, NDIN3975NDTR3986, NDIN3976NDTR3987NDTR3988, NDIN3977NDTR3989NDTR3990, NDIN3978

Build and integration completed

Customer OBP, Interoute Drop

Customer drop/regen

S Spares location

Raman amplifer (on Rx)

DCN New Telemetry Gateway

Minturno

Rome Sud

Pomezia

Riva Gala

Latina

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Building our reputation

April 12, 2010 The Forrester Wave™: European WAN Services, Q2 2010

Global Crossing, Interoute, and T-Systems are Strong Performers. Interoute differentiates its offerings by innovating; it also leads the entire pack with aggressive pricing.

It’s converged access service (“Unified Connectivity”) is innovative — it can offer multiple services including VPLS over xDSL access circuits. Its IP VPN service offers particularly aggressive pricing and strong SLAs; flat rate, simple pricing; and end-to-end SLAs as standard for the last four years, and is now moving to application performance SLAs. It offers self-provisioning of any “soft” order. MNCs should consider using Interoute as part of a multisourcing strategy