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May 2001 The European Internet Communication Company.

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Presentation on theme: "May 2001 The European Internet Communication Company."— Presentation transcript:

1 May 2001 The European Internet Communication Company


3 A proven business model… Italian business * quarterly EBITDA * Tiscali SpA, includes head quarter costs of approximately Euro 2.7 million in Q1 2001

4 …leading to one year of growth Registered subscribers Unique users Monthly minutes on line Active subscribers (30 d) Sales Top 3 positions in 8 countries Q1 2000 Q1 2001 Top 3 position in a single country 1.8m 1.2m 0.5bn 0.9m € 33m 16m 9.5m 3.4bn 7.0m € 167m Presence Top 3 position growth % 790 690 580 680 406

5 Growth in all the key metrics Registered users Active users Unique visitors Proforma data on constant basis as at 31/3/01, excludes recent acquisitions* Recent acquisitions (LibertySurf, Planet Interkom, SurfEU, LineOne) Monthly page views and minutes on line

6 The integration challenge World Online World Online integration: Rotterdam headquarters closed Completed drastic turnaround actions in Germany, Benelux, Spain, Switzerland, Italy, in progress UK (including new acquisitions) Tiscali does not have a multi-brand strategy – strong savings from unifying brands – to be completed by Q1 2002 in France and this year in the rest of Europe Full benefits of network integration and unification of R&D, technological platforms to be fully realised by Q3 for World Online and Q4 for LibertySurf Staff cost reduction of about 53% in the last quarter Tight operating costs control LibertySurf Integration process is proving very fast: New, effective management already in place Shutdown of non French operations in progress Sales & marketing expenses reduction implemented Expect to cut losses drastically already from Q2

7 Immediate turnaround Quarterly pro-forma EBITDA Proforma data on constant basis as at 31/3/01, escludes LibertySurf, Planet Interkom, SurfEU, Line One

8 The integration challenge Tiscali Q4 2000 and Q1 2001 EBITDA

9 Financials – quarterly results

10 Growth of access revenues (+1% Q on Q) limited by strong reduction in marketing expenditure (-66%) and by some special access offers in Germany which have now been terminated. Growth in minutes’ traffic was about 10% in the quarter Portal revenues, including advertising sales, continue to increase rapidly (+18%) even in a declining European market Reduction in low margin voice sales in line with our strategy and expectations Keeping our promises for reduction in G&A/personnel costs B to B sales are down 25% from the previous quarter due to a revenue peak in Q4 00 and in particular to the demands of the integration process in Q1 01. We expect that the growth trend will resume from Q2 Benefits of network, technology cost savings and revenue synergies estimated to come through by Q3/Q4 2001

11 Quarterly proforma results ** ** of which, Euro 17 m related to continuing operations, remainder to non French operations, currently being discontinued

12 Recent acquisitions SURFEU 0.7 m active users All employees retained by vendor Positive impact on EBITDA within 6 months post-closing 1,1 m registered and 0.6 m active users as at 31/3/01 User growth in excess of 100,000 per month Powerful distribution agreement with Media Saturn (Metro Group), 300 electronics superstores in Europe and growing Expected average customer acquisition cost of about €20/25 Personnel cost to Tiscali (both ongoing and restructuring) capped at € 0.5 million PLANET INTERKOM 1.8 m active users Current gross adds in excess of 50,000 per week More than 30 m mins/day Network infrastructure in advanced stage of development ADSL partnerships being negotiated N. 3 in Germany Reaching the 3 rd position in Europe’s biggest market

13 Recent acquisitions Further deals envisaged in UK/Germany/Spain Will not acquire any company which would delay achievement of profitability target and is not strongly accretive (EV/Sales, EV/User) May seek to take advantage of low price of portal assets, as in the case of Excite Italy NEXT STEPS 1,9 m registered users Over 0.4 m active ISP users 1.3 m unique visitors 5 th portal in UK per time spent 300 m minutes of monthly traffic €20m EBITDA synergies p.a. LINE ONE Consolidate market position and enhance portal capabilities in UK

14 Recent acquisitions

15 The Internet communication company Frankfurt Hamburg Copenhagen Stockholm Milano Oslo Dusseldorf Amsterdam Brussels London Paris Zurich Barcelona Prague Vienna New York Chicago Los Angeles Dallas San Jose Washington DC Madrid Rome Cagliari Marseille Most peered interconnected network in Europe (350 peering agreements) The only European ISP with US network (tier 1 network) No IP transit costs Multicasting platform A next generation network

16 The Internet communication company ACCESS SERVICES CONTENT DISTRIBUTION -Internet -VoIP -Unified Messaging -Voice Portal -Mobile VNO -Web Portal -Audio Video Streaming -Advertising -E-commerce IP based interconnected network New Telco - New Media B 2 B

17 Tiscali progress since IPO Benefits of European expansion

18 Main goals for 2001 Consolidate European leadership as the first Internet communication company EBITDA positive in Q4 2001 Broadband roll out through network sharing and strategic partnerships

19 Disclaimer This presentation contains unaudited proforma financial data; it also includes forward-looking information that is subject to risks and uncertainties associated with Tiscali and the Internet sector. This information reflects Tiscali’s management expectations, based on currently available information. The forward-looking information reflects certain assumed market parameters and other assumptions, but may differ materially from actual future results. This presentation does not constitute an offer of Tiscali Shares Not for release, publication or distribution, in whole or in part, in or into United States, Canada, Australia, Japan or Germany.

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