Jazztel: Wholesale divisionpresentation

Madrid2014

2

Agenda

JAZZTEL: COMPANY OVERVIEW

WHOLESALE OFFERING

JAZZTEL’S ASSETS AND CAPABILITIES SUPPORTING THE WHOLESALE PROPOSITION

3

Introduction to JAZZTEL: an overview

56% 11% 33%Revenue Split

Revenue Split

GrossMargin Split

GrossMargin Split

• ... primary focus on broadband residential services

0Residential Corporate Wholesale – ADSL (ULL, resale)

– Voice (Single invoice & pre selection)

– TV– Others

– Data services (leased lines, DSL, VPN,…)

– Voice (Traditional, IP voice, ...)

– Carrier– Resale– ISP´s– Others

• JAZZTEL has the largest alternative fixed network infrastructure in Spain.

• ... providing telecom services to all key markets..

Internet

Other operators

Almost 75% of JAZZTEL’s gross margin is generated by the residential business line

4

Heading 1 – Table of ContentsIntroduction to JAZZTEL: Jazztel notoriety

Because Jazztel is a wide and reliable project

Because Jazztel is a reference value at

the Spanish stock market

1 2 3

• Jazztel is “the big survival” of the consolidation of the Telecom Spanish market.

• This has been possible due to the high value of Jazztel’s assets…

• ..and to its expectations and capacity to generate organic growth levering on its assets.

• Capitalization of €460MM• About 100.000 minor

stakeholders• Very high trading volume,

resulting in a very liquid value (>2M/day ’09)

• Followed by some of the biggest analyst firms:- JP Morgan- Fortis Bank- Santander- La Caixa- Banesto- BPI- Ibersecurities- ...

• >€348MM 2998 annual revenue• Jazztel employs more than 2.000 people• Customer base:

- 374.610 ADSL clients (94% ULL)- 434.777 voice services customers- 18.116 enterprise services- 180 wholesale contracts with other

operators• 533 unbundled local exchanged with

spare capacity to allocate over 1,5MM services

• Backhaul network and metropolitan access of more than 4.300 Km of fiber

Jazztel is a notorious and relevant company in the Spanish telecommunications landscape,

WHY?

Jazztel as a reality

8,1%

5,9%

6,0%

6,0%

15,0%

23,0%

36,0%

Other

Ya.com

Orange

Vodafone/Tele2

ONO

Telefónica

JAZZTEL 1

Sample: 6,600 votes

http://www.adslzone.net/article2484-jazztel-es-el-operador-del-2008-mas-valorado-por-los-internautas.html

Because Jazztel delivers a high quality service and product

5

Introduction to JAZZTEL: Towards profitability

Sustainable revenues increase … … And gross margin improvement

SG&A costs controlled Important EBIDTA growth

34

41

3437 38 39

42

47

48%48%

45%

53%

48%

47% 47% 47%

Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08

8898

83807971

7875

Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08

(%)(€ mm)(1)

(€ mm)

303

348+15%+13% 165

146

3944

383735334140

Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08

(€ mm)

Source: Jazztel. Note: values exclude CCS operation(1) 7,6 MM€ extraordinary revenue included

149 159

+7%

2,8 2,9

0,30,3

1,61,0

0,4

-6,0

Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08

-3

6,2

6

Jazztel residential offering

JAZZTEL’s offer is complete, adding in ‘08 mobile services

@

Main product (84% of ADSL base)Single invoice services

Ready!

Triple Play:

• Free national calls.• Up to 20Mb ADSL.• Jazztelia TV (IPTV), with 37 thematic television

channels and Video On Demand.• Phone line set-up fee and maintenance included• “We give you your money back if you are not

satisfied”

Triple play offer

• All voice, data and TV services in just one invoice, which also includes the line fee.

• The single invoice increases customer satisfaction and reduces churn.

7

Jazztelia TV

Videoclub (VOD)

Wide channel offering

JAZZTEL re-launches IPTV services with more than 40 channels, wider VoD offer at more competitive prices in 2009

8

Mobile Services

“FULL OMV” business model

EnablerRadio access provider

Transmission & switching

Product & service delivery

InvoicingCustomer

careMarketing &

Sales

Marketing, Sales, voice termination

Jazztel has a full MVNO model that allow a wide variety of voice & data services at very aggressive rates.

Some new products in 22009

Data (Internet) servicesVoice services

9

In house Customer Care

In house customer care division

• Jazzplat started to operate in December 2005.

• Almost all customer care services were migrated to the new platform to Argentina during 2006.

• Nowadays, Jazzplat headcount is 1.285 employees of whom 1.120 are agents.

• Jazzplat occupies about 5.100 m2

Jazzplat in-house structure allows the company to provide a superior and dynamic customer care service.

10

Jazztel bets for quality of service at a good price

Low High

Ch

eap

Exp

en

siv

e

Pri

ce p

er c

ep

t ion

Optimum quality for a reasonable price:

“The intelligent choice”

- +

-

+

Serviceability and Quality

Aff

ord

ab

le

Value for money

http://www.adslzone.net/article2484-jazztel-es-el-operador-del-2008-mas-valorado-por-los-internautas.html

8,1%

5,9%

6,0%

6,0%

15,0%

23,0%

36,0%

Other

Ya.com

Orange

Vodafone/Tele2

ONO

Telefónica

JAZZTEL 1

Sample: 6,600 votes

11

Agenda

JAZZTEL: COMPANY OVERVIEW

WHOLESALE OFFERING

JAZZTEL’S ASSETS AND CAPABILITIES SUPPORTING THE WHOLESALE PROPOSITION

12

The wholesale offering

Access services: toll free, local & premium access.Access services: toll free, local & premium access.

• Coexistencia de

With revenues exceeding €100mm, the wholesale division of Jazztel offers quality Voice, Data, and Prepaid calling services, which originates over 1,5 billion international minutes per year.

TDM & VoIP Interconnection available over Internet (SIP & H.323)

TDM & VoIP Interconnection available over Internet (SIP & H.323)

Voice Gold Termination Service based in Premium Quality routesVoice Gold Termination Service based in Premium Quality routes

ATM/IP technology (DSL) with a full range of productsATM/IP technology (DSL) with a full range of products

DSL White Brand productsDSL White Brand products

IP transit IP transit

Several calling cards covering all national and international destinations

Several calling cards covering all national and international destinations

Targeted cards to immigrants and travellers (JazzCard, JazzAsia, JazzLatina, JazzAfrica)

Targeted cards to immigrants and travellers (JazzCard, JazzAsia, JazzLatina, JazzAfrica)

Customized cards for specialized clients (Jazztel White Brands)Customized cards for specialized clients (Jazztel White Brands)

TDM & VoIP Interconnection available over Internet (SIP & H.323)

TDM & VoIP Interconnection available over Internet (SIP & H.323)

Possibility to buy cards in Spain and use them abroadPossibility to buy cards in Spain and use them abroad

Voice services Data services Prepaid calling card

Leased lines (from E1 up to wavelength)Leased lines (from E1 up to wavelength)

13

JAZZEL own Prepaid Calling Cards

Traffic distribution:

94% Asia

2% Europe

2% America

0% Africa

Traffic Distribution:

86% America

11% Europe

2% Asia

0% Africa

Traffic distribution:

75% America

17% Europe

7% Asia

2% Africa

New Product

75 % Africa

15 % Asia

8 % Europe

2 % America

14

Agenda

JAZZTEL: COMPANY OVERVIEW

WHOLESALE OFFERING

JAZZTEL’S ASSETS AND CAPABILITIES SUPPORTING THE WHOLESALE PROPOSITION

15

JAZZTEL national network

2

43

2

4

1

1

6

3

511

91

2

43 2

115

3

12

1

50<= Penetration < 70%

40% <= Penetration < 50%

25% <= Penetration < 40%

Penetration => 70%

Number of local exchanges

98

2

3

22

19

27

9

4

96

25

1

1

7

31

6

12

2

9

614

5 12

3

26

12

JAZZTEL has in place the largest coverage network among Spanish alternative operators

Illustrative– Full access termination

capacity in Spain & direct optical interconnection with: – All mobile operators– The main altnets– Telefónica

– 6 TDM Switches and one SoftSwitch for TDM and IP interconnections

– Backbone: 21.569 Km

– Local access: 4.302 Km

– ULL local exchanges: 531 with coverage for IPTV of which 451 are connected with fiber (85%)

– Fixed line coverage: 62%

– 48/50 Provinces covered, major economic hubs (Madrid, Barcelona, Seville, Malaga, Zaragoza and Bilbao)

– Full access termination capacity in Spain & direct optical interconnection with: – All mobile operators– The main altnets– Telefónica

– 6 TDM Switches and one SoftSwitch for TDM and IP interconnections

– Backbone: 21.569 Km

– Local access: 4.302 Km

– ULL local exchanges: 531 with coverage for IPTV of which 451 are connected with fiber (85%)

– Fixed line coverage: 62%

– 48/50 Provinces covered, major economic hubs (Madrid, Barcelona, Seville, Malaga, Zaragoza and Bilbao)

16

Jazztel international network

Current PoP

Jazztel IP network

Espanix (ESP)

Catnix (ESP)

NAP (USA)Linx

(UK)

Hkix

(Hong Kong)

International Voice Network

This allows Jazztel to fulfill our offer with a very attractive and competitive international pricing.

Interconnections & Peering Points Agreements

• Interconnection with more than 150 international operators in Europe, Asia, Africa, and North / South America.

• Due to the increasing immigration coming to Spain, JAZZTEL is optimising its termination routes in Latin America, Europe, Eastern Europe, and North Africa.

• We have reached peering agreements in the most relevant world data centers.

• JAZZTEL has significantly increased its presence on a global level by increasing its Points of Presence (PoP).

• Exchange of voice and data traffic focuses on the points with the greatest traffic concentrations.

• Existing POPs opened in Madrid, London, Paris, Frankfurt, Milan, New York, Miami and Hong Kong.

• Jazztel offers interconnection possibilities in TDM and IP (VoIP) in all Jazztel’s POPs.

Miami

New York

Paris

London Tele House

MadridMilan

Hong Kong

Frankfurt-Ancotel

Lisbon

17

Jazztel direct routes

Angola, Cameroon, Cote D’Ivoire, Gabon , Ghana, Guinea, Kenya, Morocco, Mali, Nigeria, Somalia, South Africa, Tanzania, Uganda and Zambia.

Argentina, Bolivia, Brazil, Canada, Chile, Colombia, Dominican Republic, Ecuador, Mexico, Panama, Paraguay, Peru, Uruguay, US, and Venezuela.

China, Philippines, Hong Kong, India, Japan, Korea, Malaysia, New Zealand, Singapore, Taiwan, Sri-Lanka and Vietnam.

JAZZTEL has currently direct routes to 69 countries worldwide.

Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France Greece, Germany, Hungary, Ireland, Israel, Italy, Latvia, Moldova, Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, UK, Ukraine.

Europe (27 countries with direct routes) America (15 countries with direct routes)

Africa (15 countries with direct routes) Asia & Pacific (12 countries with directs)

18

Expert and dynamic team of professionals

Contact address for auther infos ITWholesale division organizational Chart

MD WholesaleLuis Suñer

MD WholesaleLuis Suñer

MarketingCristina Moreno

MarketingCristina Moreno

Interconnection, Purchasing, Provisioning & Engineering

Francisco Gómez

Interconnection, Purchasing, Provisioning & Engineering

Francisco Gómez

Product management Voice & DataJavier Irigaray

Product management Voice & DataJavier Irigaray

Product management Calling Cards

Rosa Dominguez

Product management Calling Cards

Rosa Dominguez

Reseller & Calling Cards

Santiago Toribio (669373358

Reseller & Calling Cards

Santiago Toribio (669373358

E-mail:santoribio@gmail.com

Phone: (+34) 669373358.

For more information, do not hesitate to contact Jazztel wholesale department.

Thank you for your attention!

• A very senior team of professionals with many years of experience in the telecom sector and more concretely developing the wholesale sector in Spain

Sales & Customer Care

Santiago Núñez-Lagos

Sales & Customer Care

Santiago Núñez-Lagos

Voice carrier relations

Alfonso González

Voice carrier relations

Alfonso González

Technical Customer Care

Goretti Serrano

Technical Customer Care

Goretti Serrano

Data carrier relationsJaime Jaén

Data carrier relationsJaime Jaén

Voice purchasingJ.A. Serrano

Voice purchasingJ.A. Serrano