Company Presentation - thenextview.com. This presentation does not constitute and should not be considered as any form of financial opinion or recommendation. Disclaimer

Company PresentationMarch 2010

Copyright euNetworks 2010

The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for any convertible bonds (the “Convertible Bonds”) or rights (the “Rights”) to purchase Convertible Bonds to be offered by euNetworks Group Limited (the “Company”) or shares in the Company (the “Shares”), in Singapore, the United States or any other jurisdiction. It should not, nor should anything contained in it, form the basis of, or be relied upon in any connection with any contract or commitment whatsoever.

An offer information statement (the “OIS”) in relation to the renounceable partially underwritten rights issue (the “Rights Issue”) of zero coupon Convertible Bonds has been lodged with the Singapore Exchange Securities Trading Limited as agent for the Monetary Authority of Singapore and will be despatched to entitled shareholders of the Company and purchasers of the provisional allotments of Convertible Bonds (the “Rights”) eligible to participate in the Rights Issue in due course. Any decision to subscribe for Convertible Bonds or purchase Rights should be made solely on the basis of information contained in the OIS and no reliance should be placed on any information other than that contained in the OIS.

This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Although the Company believes that such forward-looking statements are based on reasonable assumptions, it can give no assurance that such expectations will be met.Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, shifts in customer demands, customers and partners, changes in operating expenses, including employee wages, benefits and training, governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward looking statements, which are based on current view of the management on future events.

This presentation has been prepared by the Company. The information in this presentation has not been independently verified. No representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions in this presentation. None of the Company or any of its agents or advisers, or any of their respective affiliates, advisers or representatives, undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise and none of them shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation.

This presentation may not be distributed in the United States. The Rights, Convertible Bonds and Shares may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933 (the “Securities act”) as amended. Neither the Company nor any seller of securities intends to register any portion of any offering in the United States or to conduct a public offering of securities in the United States.

This presentation must not be distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person, whether or not such person is a relevant person.

It is recommend that the recipient seek independent third party legal, regulatory, accounting and tax advice as appropriate with regards to the contents of this presentation. This presentation does not constitute and should not be considered as any form of financial opinion or recommendation.

Disclaimer

March 2010 Copyright euNetworks 2010 Page 1

2009 Summary

• euNetworks is a facilities based provider of ethernet and IP services to both wholesale and enterprise customers.

• We operate in a sub segment of the telecommunications industry defined as Bandwidth Infrastructure.

• This segment is characterised by:

• Horizontally integrated business strategies;

• High barriers to entry;

• Unique assets;

• Rapidly growing demand and predictable recurring revenues;

• Significant capital to operate at scale leading to high operating leverage (yielding high gross margins & EBITDA margins) generating high free cash flow.


• euNetworks is early in its development.

• Our strengths lie in our deep European metro networks and experienced leadership team.

• Our challenge is to begin to generate revenues across our footprint at the right financial return.

• Central to this is the need to develop our networks and put more buildings on our network.

• Our goal is to add more than 1,000 buildings over the next five years.

• The main purpose of this fundraising is to:

• Repay our existing 2012 bonds.

• Fund capital expenditure.

• Working Capital.

Agenda

1 Bandwidth Infrastructure

2 Our Network

3 Strategy

4 Management & Financials


Where does euNetworks fit in the telecom industry?

Telephony, Broadband, Application Management, Transactions, Storage

End UserServices

Voice, Data, Mobile, Video, CDN, HostingEnterprise/Telco

Services

Colocation, Cell Towers, Duct, Fibre, Network Equipment

BandwidthInfrastructure

Public Rights of Way, Spectrum,Utilities, Property Owners

Enablers of Infrastructure


Where does euNetworks fit in the telecom industry?

• Horizontally integrated

• High barriers to entry

• Rapidly growing demand

• Predictable recurring revenues

• Significant capital to operate at scale

• Unique assets

• High free cash flow at scale

• Primarily 3-5 year recurring revenue contracts

• High operating leverage

Bandwidth Infrastructure has similar

characteristics to the Colocation segment


Bandwidth Infrastructure is a critical enabler of business

Amsterdam Metro Fibre

Frankfurt Metro Fibre

Bank Head Office

Enterprise Data Centre

Multi Tenant Building

Pan-EU Longhaul Fibre

Financial Exchange Data Centre Multi Tenant Building

London Metro Fibre

Bank Head Office

Financial Exchange

Carrier Hotel

Cell Tower

Cable Head end

Broadcast Playout Centre


240,000

212,000

185,500

159,000

132,500

106,000

79,500

53,000

26,500

0

Source: Juniper, Cisco, MIN from “Do The Economics Of Bandwidth Scale?” Presentation by Juniper Networkshttp://www.slideshare.net/kvjs/do-the-economics-of-bandwidth-scale-juniper-presentationTS

1990 1993 1996 1999 2002 2005 2008 2011 2014 20202017

+36%Video

+24%Non-video

Plus Machine to Machine?

+32%2008-2020

CAGR

www is born

Digital decade

27xGrowth

2008-2020

Why the Bandwidth Infrastructure model is attractiveDemand growing exponentially

Worldwide internet traffic, 1990-2020 [PB/month]


http://www.slideshare.net/kvjs/do-the-economics-of-bandwidth-scale-juniper-presentationTS















Why the Bandwidth Infrastructure model is attractive

High Data Needs and Capacity ConstraintsInternet Use (GB per Avg. sub per month)

Ethernet/WDM Anticipated to Grow ~ 30%Global Ethernet Infrastructure Revenues ($ in billions)

Source: Cisco Visual Networking Index: Usage Study; euNetworks Internal Analysis http://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/Cisco_VNI_Usage_WP.html

Source: Arc Advisory Group; euNetworks Internal Analysishttp://www.arcweb.com/StudyBrochurePDFs/Study_ethernet-infra.pdf#search=%22ethernet%22


1823

37

53

69

82

0

20

40

60

80

100

2008 2009 2010 2011 2012 2013

260

350

450

600

750

950

$0

$200

$400

$600

$800

$1,000

2006 2007 2008 2009 2010 2011

http://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/Cisco_VNI_Usage_WP.html

http://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/Cisco_VNI_Usage_WP.html

http://www.arcweb.com/StudyBrochurePDFs/Study_ethernet-infra.pdf



Why the Bandwidth Infrastructure model is attractiveImproved supply and demand balance

• Too many suppliers

• Vertically complicated companies

• Too much capacity “build it and they will come”

• Speculative customers

• Irrational expectations drove & supported bad balance sheets

• Horizontally focused Bandwidth Infrastructure businesses emerging

• Suppliers beginning to consolidate

• Sustainable demand driven by fundamental bandwidth usage

• High barriers to entry

• Indications of pricing stabilisation (on unique assets)

Telecom Meltdown Today

DemandSupply Demand

Supply

Source: Zayo Group; Kaufman Brothers


Competitive financial baseline dataA fast growing and highly profitable sub-segment of telecom companies

Source: Kaufman Bros., Company Earnings Reports

AboveNet

AFS

Cogent

FiberTech

FPL Fibernet

Lightower

15%

20%

11%

20%

15%

15%

42%

38%

29%

50%

40%

35%

47%

43%

34%

55%

45%

40%

RCN Metro

TWTC

Zayo Group

10%

13%

12%

33%

31%

35%

38%

34%

40%

Average 15% 37% 42%

CompanyEBITDA Margin

Low High3 yr. Rev. CAGR


Competitive financial baseline data

EBITDA Margin Trends – Competitive Telecoms Competitive Telecom: Capex as % of Revenue Trends

• Capital intensity can be a function of stage of development of company, ease of raising capital or availability of expansion opportunities; however, capital intensity can also be driven by the proportion of services that a carrier can place upon it’s own network.

• Facilities-based metro carriers in the U.S. have successfully leveraged their network assets in the ground to drive high margin business via capital investment.

• euNetworks strategy is to invest a high percentage of revenue into the network as CapEx – a proven operational model that delivers strong returns.

ABVT

TWTC

RCN Metro

CCOI

LVLT

Sprint Wireline

ITCD

CBeyond

PAET

GLBC

XOHO

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09

Sprint Wireline

50%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09

ABVT

TWTC

RCN Metro

Cogent

LVLT

ITCD

CBeyond

PAET

GLBC

XOHO

Source: Telecom Ramblingshttp://www.telecomramblings.com/2009/11/ebitda-margin-trends-for-competitive-fiber-networks-112009/http://www.telecomramblings.com/2009/11/capex-trends-amongst-competitive-telecoms/


http://www.telecomramblings.com/2009/11/ebitda-margin-trends-for-competitive-fiber-networks-112009/















http://www.telecomramblings.com/2009/11/capex-trends-amongst-competitive-telecoms/









Agenda


2 Our Network

3 Strategy



euNetworks has fibre networks in 15 metro markets but only generates measurable revenue from 4 cities

Hanover

Dublin

London

Amsterdam

Frankfurt

Hamburg

Berlin

Stuttgart

Düsseldorf

UtrechtRotterdam

The Hague

Munich

Cologne

Paris

• A unique inventory of fibre and duct assets tailored to fulfill the high bandwidth needs of enterprises and carriers

• 4 key markets today

• Upside with growth potential in 9 markets


Our networks are in the right places

Amsterdam Metro Frankfurt MetroDublin Metro

London Metro


Less than 10% of fibre in use*

The network delivers growth potential

*Average utilisation across Metro networks

Up to 6 ducts within each city

Only 1 duct used with 432 fibres


We need to add buildings to the network to unlock its potential

Totals 245 1,830

Market4Q09

On-Net Buildings

5 Year IndicativeOn-Net Buildings

Dublin

London

Amsterdam

Rotterdam

The Hague

Utrecht

34

16

42

4

0

10

100

300

200

70

0

60

Berlin

Cologne

Dusseldorf

9

9

19

100

60

100

Frankfurt

Hamburg

Hanover

Munich

Stuttgart

Paris

83

10

0

2

5

2

250

120

0

120

100

250


Agenda


2 Our Network

3 Strategy



Our strategy


Built on scalable operating platforms

Invest in network development tomaximise Return on Invested

Capital

Add traffic intensive buildingsOffer the right products at the right price with an outstanding customer

service to generate high revenue growth

Focus for growth

Geography

Products

Customers


Focus for growth

• Geography

• Generate revenue across our footprint

• Add target buildings

• Products

• IP and Ethernet

• Wavelengths

• Dark Fibre

• Customers

• Wholesale

• Carrier, ISP, Cable, Mobile, etc.

• Enterprise

• Large bandwidth consuming companies on or near our fibre.

• Financial Services, Media, Healthcare, Legal, Manufacturing, etc.

Geography

Products

Customers


Agenda


2 Our Network

3 Strategy



euNetworks Management Team

Noel MeaneyExecutive Chairman

Brady RafuseChief Executive Officer

James BrodieChief Financial Officer

Uwe NicklChief Marketing Officer

Richard TaylorGeneral Counsel

Claire LeakeVice President Human Resources


Financial summary

Listing Singapore Exchange Catalist

Ticker Symbol

Bloomberg EUN:SP

Reuters EUNG.SI

SGX H23.SI

Shares Outstanding 8,645 million

Market Capitalisation~ S$130 million

[based on S$0.015 per share]

52-Wk Hi/Lo S$0.045 / S$0.010


FY06 FY07 FY08 FY09

• Annual recurring revenues have grown significantly to FY09, reflecting a Compound Annual Growth Rate (CAGR) of 39% since FY06.

• In addition we won 74 new customers during FY09 (79 in FY08).

Long-Term Recurring Revenue Growth (€m)

30

5

10

15

20

0

10.8

16.3

23.5

29.3

Historic revenue growth

25


FY09 Financial highlights

Financial Year-end: 31 December

(€ ‘000) FY2009 FY2008

Revenue 30,149 23,921

EBITDA (4,212) (6,038)

Exceptional Gain and/or Non operating Income 8,320 1,948

Loss before tax (10,269) (18,865)

Loss after tax (9,857) (18,210)

PPE 155,217 156,082

Current assets 16,207 16,453

Total liabilities 42,406 82,025


Partially underwritten Rights Issue

• Convertible Bonds.

• 1 zero coupon Convertible Bond for

every 100 shares held issued at 3% discount.

• Issue price of S$0.97 for each Convertible Bond.

• Initial conversion price S$0.02 per Convertible

Bond.

• Term – 3 years.

• Semi-annual conversion price resets.

• Rationale and use of proceeds:

1. Fund the repayment of the 2012 Bonds

2. Fund the capital expenditure requirements of the

company, with the balance for working capital.

• Strong support from substantial shareholders.

6 month

1 year

1 year 6 month

2 year

2 year 6 month

3 years (Maturity Date)

0.019231

0.018491

0.017780

0.017096

0.016439

0.015806

Anniversary of date of issue

Conversion Price (S$)


Summary

Strong market growth driven by demand for bandwidth

High barriers to entry

Attractive business model with long term recurring revenues

Unique assets that offer high operating leverage

Management’s proven ability to execute and deliver value

1

2

3

4

5


Copyright euNetworks 2010

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Company Presentation - thenextview.com. This presentation does not constitute and should not be considered as any form of financial opinion or recommendation. Disclaimer